Are you dreaming of owning a car? Whether you’re looking for a brand-new vehicle or an electric car, Canara Bank offers a range of 4-wheeler loans to help you make your dream a reality. In this detailed guide, we’ll break down Canara Bank’s 4-wheeler loan interest rates for 2025, explain the factors that influence them, and help you understand how to calculate your loan’s final cost.
How Canara Bank Determines Your 4-Wheeler Loan Interest Rate
Canara Bank’s 4-wheeler loan interest rates are determined using two primary benchmarks: Repo Linked Lending Rate (RLLR) and Fixed Rate of Interest.
Repo Linked Lending Rate (RLLR)
The RLLR is an external benchmark, set at 8.25% effective from June 12, 2025. The RLLR influences the final interest rate applied to your loan.
- New Accounts (opened on or after June 12, 2025): RLLR is 8.25%.
- Accounts opened before February 12, 2023, and not completed for 3 years: RLLR is 8.40%.
- Accounts opened before February 12, 2023, and completed 3 years: RLLR is 8.25%.
- Accounts opened on or after February 12, 2023: RLLR is 8.25%.
The final effective rate of interest is calculated as:
- RLLR + Credit Risk Premium (CRP) over RLLR – Concession for RLLR-linked loans.
- RLLR + Fixed Rate Premium (FRP) + CRP over RLLR – Concession for Fixed Rate loans.
Your Credit Risk Group (CRG) and the sanctioned loan limit significantly affect the Credit Risk Premium (CRP), which is added to the RLLR.
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Canara Bank 4-Wheeler Loan Interest Rates (2025)
Canara Bank offers a variety of 4-wheeler loans with different interest rate options, depending on whether you opt for a fixed-rate loan or an RLLR-linked loan.
1. Fixed-Rate Interest Rates for Canara 4-Wheeler Loans
Canara Bank offers fixed-rate loans, where the interest rate remains the same throughout the loan tenure. The rate is calculated by adding the Fixed Rate Premium (FRP) to the RLLR, along with the Credit Risk Premium (CRP).
A. Canara Vehicle (General 4-Wheeler Loans including Agriculturists)
| CRG | Women Borrowers (Effective Rate) | Other Borrowers (Effective Rate) |
|---|---|---|
| CRG-PRIME | 8.95% | 9.00% |
| CRG: 1 | 9.10% | 9.15% |
| CRG: 2 | 9.25% | 9.30% |
| CRG: 3 | 9.65% | 9.70% |
| CRG: 4 | 11.05% | 11.10% |
Note: These rates are applicable irrespective of the loan amount.
B. Canara Green Vehicle (Electric 4-Wheelers including Agriculturists)
| CRG | Effective Rate of Interest (Women & Other Borrowers) |
|---|---|
| CRG-PRIME | 8.85% |
| CRG: 1 | 9.00% |
| CRG: 2 | 9.15% |
| CRG: 3 | 9.55% |
| CRG: 4 | 11.70% |
Note: These rates are applicable irrespective of the loan amount.
C. Canara Vehicle (4-Wheelers) to Firms/Companies (General & Electric Vehicle)
| Loan Product | RLLR | Fixed Rate Premium (FRP) | Credit Risk Premium over RLLR | Effective Rate of Interest under RLLR |
|---|---|---|---|---|
| Canara Vehicle (4 Wheelers) to Firms/Companies (General & Electric Vehicle) | 8.25% | 0.75% | 0.30% | 9.30% |
2. RLLR-Based Interest Rates for Canara 4-Wheeler Loans
Here’s the breakdown of the RLLR-linked interest rates based on your Credit Risk Group (CRG) for general 4-wheeler loans, including loans for agriculturists, green vehicles, and electric vehicles.
A. Canara Vehicle (General 4-Wheeler Loans including Agriculturists)
| Sanctioned Loan Limit | CRG | Women Borrowers (Effective Rate) | Other Borrowers (Effective Rate) |
| Up to ₹15 Lakh | CRG-PRIME | 8.15% | 8.20% |
| CRG: 1 | 8.25% | 8.30% | |
| CRG: 2 | 8.50% | 8.55% | |
| CRG: 3 | 8.90% | 8.95% | |
| CRG: 4 | 10.90% | 10.95% | |
| Above ₹15 Lakh | CRG-PRIME | 7.75% | 7.80% |
| CRG: 1 | 7.85% | 7.90% | |
| CRG: 2 | 8.10% | 8.15% | |
| CRG: 3 | 8.50% | 8.55% | |
| CRG: 4 | 10.50% | 10.55% |
Note: The concession applied to Canara Vehicle 4-wheeler loans remains the same until the loan completes 3 years from the date of first disbursement.
B. Canara Green Vehicle (Electric 4-Wheelers including Agriculturists)
| Sanctioned Loan Limit | CRG | Effective Rate of Interest (Women & Other Borrowers) |
| Up to ₹15 Lakh | CRG-PRIME | 8.05% |
| CRG: 1 | 8.15% | |
| CRG: 2 | 8.40% | |
| CRG : 3 | 8.80% | |
| CRG: 4 | 10.95% | |
| Above ₹15 Lakh | CRG-PRIME | 7.70% |
| CRG: 1 | 7.80% | |
| CRG: 2 | 8.05% | |
| CRG: 3 | 8.45% | |
| CRG: 4 | 10.50% |
Note: The concession applied to Canara Green Vehicle 4-wheeler loans remains the same until the loan completes 3 years from the date of first disbursement.
C. Canara Vehicle (4-Wheelers) to Firms/Companies (General & Electric Vehicle)
| Loan Product | RLLR | Credit Risk Premium over RLLR | Effective Rate of Interest under RLLR |
|---|---|---|---|
| Canara Vehicle (4 Wheelers) to Firms/Companies (General & Electric Vehicle) | 8.25% | 0.30% | 8.55% |
Additional Charges
If you opt to convert your interest rate regime (e.g., from floating to fixed or vice versa) for EMI-based retail loans, an administrative cost/switchover charge applies. This charge is 0.25% of the loan amount, with a minimum of ₹250 plus GST and a maximum of ₹25,000 plus GST.
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Canara Bank 4-Wheeler Loan EMI Calculator
Calculating your monthly EMI (Equated Monthly Installment) is crucial for planning your finances before applying for a car loan. Canara Bank provides flexible options for EMI calculation based on your loan amount, tenure, and interest rate.
How to Use the EMI Calculator
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Enter the Loan Amount: Input the total 4-wheeler loan you plan to take.
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Select the Tenure: Choose your preferred repayment period (e.g., 1–7 years).
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Choose the Interest Rate: Enter the applicable rate based on your Credit Risk Group (CRG) and loan type (RLLR-linked or fixed).
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Calculate EMI: The tool will provide the monthly EMI and the total repayment amount.
Example Calculation
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Loan Amount: ₹15,00,000
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Tenure: 5 years
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Interest Rate: 8.15% (for CRG-Prime, women borrower, RLLR-linked loan)
EMI: ₹30,446/month
Total Repayment: ₹18,26,760 (interest: ₹3,26,760)
This calculation helps you compare different CRG rates, tenures, and loan options to choose the most affordable plan.
Pro Tip: Pair the EMI calculator with a credit score check on Buddy Loan to see which rates you may qualify for before applying.
Factors Affecting Canara Bank 4-Wheeler Loan Interest Rates
Understanding the factors influencing your interest rate can help you get the best deal:
- Credit Risk Group (CRG): Determines the credit risk premium; a higher CRG may increase interest rates.
- Loan Amount & Tenure: Larger loans or longer tenures may affect the interest rate.
- Fixed vs Floating Rate: Fixed rates offer stability, and floating rates fluctuate with RLLR.
- Type of Vehicle: Electric vehicles or special schemes like Canara Green Vehicle may have different rates.
- Borrower Category: Women borrowers and salaried employees may receive concessions.
- Existing Bank Relationship: Existing account holders or payroll customers may get preferential rates.
Conclusion
Canara Bank offers competitive 4-wheeler loan interest rates with flexible options, whether you choose fixed or RLLR-linked interest rates. The final rate is determined by your Credit Risk Group (CRG), the loan amount, and the interest rate regime. Understanding how interest rates work and calculating the potential cost of your loan will help you make an informed decision.
For the best rates tailored to your needs, it’s always recommended to visit Canara Bank directly or consult their customer service for more personalized details.
If you’re looking for personalized loan options, you can also explore platforms like Buddy Loan. Buddy Loan connects borrowers with a network of verified lenders, ensuring you get the most suitable loan for your needs.
Check your credit score for FREE with Buddy Loan and explore a variety of loan options available to you.
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