Dreaming of owning a two-wheeler? Whether it’s your first bike or a brand-new model, Canara Bank offers competitive two-wheeler loans to help you make your dream a reality. Understanding interest rates and how they are calculated is a crucial part of planning your loan. In this guide, we’ll take a deep dive into Canara Bank’s two-wheeler loan interest rates for 2025, including factors that affect your rate, how the bank determines the final interest you’ll pay, and much more.
How Canara Bank Determines Your Loan Interest Rate
Canara Bank’s two-wheeler loan interest rates are primarily linked to the Repo Linked Lending Rate (RLLR), which is an external benchmark. The RLLR serves as the base rate to which a Credit Risk Premium (CRP) is added to determine your effective interest rate.
Current RLLR of Canara Bank
- Effective RLLR: 8.25% (effective from June 12, 2025)
- For new accounts opened on or after 12.06.2025, the RLLR is 8.25%.
- For accounts opened before 12.02.2023 that have not completed 3 years, the RLLR is 8.40%.
- For accounts opened before 12.02.2023 and completed 3 years, the RLLR is 8.25%.
- For accounts opened on or after 12.02.2023, the RLLR is 8.25%.
Your final interest rate will also be influenced by additional factors, including a Credit Risk Premium (CRP) based on your Credit Risk Group (CRG) and whether you opt for a fixed or floating interest rate. A higher CRG typically leads to a higher interest rate, as it reflects higher credit risk.
If you’re also interested in a home loan, you can check the Canara Bank Home Loan Interest Rates to compare rates.
0
Bad
Check your Credit Score for Free
Your credit score is updated monthly and gives you insight into your creditworthiness. Take control of your financial future today.
Canara Bank Two-Wheeler Loan Interest Rates
Canara Bank offers two types of interest rate regimes for its two-wheeler loans: Fixed Rate and RLLR-Linked. Here’s a detailed breakdown of both.
Canara Bank Two-Wheeler Loan Fixed Interest Rates
Under the fixed-rate regime, the interest rate is constant throughout the loan tenure, which provides predictability in your EMI payments. The interest rate is calculated by adding the Fixed Rate Premium (FRP) to the RLLR, along with the Credit Risk Premium (CRP).
Fixed-Rate Interest Rates Based on Credit Risk Group (CRG)
| CRG | Women Borrowers (Effective Rate of Interest) | Other Borrowers (Effective Rate of Interest) |
|---|---|---|
| CRG: 1 | 11.10% | 11.15% |
| CRG: 2 | 11.25% | 11.30% |
| CRG: 3 | 14.25% | 14.30% |
| CRG: 4 | 16.00% | 16.00% |
Note: These rates are derived from the RLLR of 8.25% and an **FRP of 0.75%.*
Canara Bank Two-Wheeler Loan Variable Interest Rates
For RLLR-linked loans, the interest rate is tied directly to the Repo Linked Lending Rate (RLLR). Changes in the RBI repo rate will directly impact your interest rate and, consequently, your EMI. This option is suitable for borrowers who are comfortable with fluctuations in interest rates over time.
RLLR-Linked Interest Rates Based on Credit Risk Group (CRG)
| CRG | Women Borrowers (Effective Rate of Interest) | Other Borrowers (Effective Rate of Interest) |
|---|---|---|
| CRG: 1 | 10.35% | 10.40% |
| CRG: 2 | 10.50% | 10.55% |
| CRG: 3 | 13.50% | 13.55% |
| CRG: 4 | 15.25% | 15.25% |
Note: These rates are derived from the **RLLR of 8.25%.*
Personal Loan
Quick Approval in 24 Hours
💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes
Canara Bank Loan EMI Calculator
An EMI (Equated Monthly Installment) calculator is an essential tool that helps borrowers estimate their monthly repayments based on the loan amount, interest rate, and loan tenure. It gives you a clearer idea of your financial commitment and helps you make informed decisions about your loan.
Example Calculation:
Let’s assume you apply for a Canara Bank Two-Wheeler Loan with the following details:
- Loan Amount: ₹1,00,000
- Tenure: 3 years (36 months)
- Interest Rate: 10% (RLLR-linked)
Using the EMI Calculator, the EMI would be calculated as follows:
- EMI = ₹3,224/month
- Total Repayment = ₹1,16,064 (₹16,064 as interest)
By using the Canara Bank Two-Wheeler Loan EMI Calculator, you can quickly determine whether the EMI fits within your monthly budget. The calculator also lets you experiment with different loan amounts and tenures to find the best combination for you.
|
Important Considerations When applying for a two-wheeler loan with Canara Bank, keep these considerations in mind:
|
How Can You Benefit from Canara Bank Two-Wheeler Loans?
Canara Bank offers two-wheeler loans with multiple benefits. These include:
- Quick Loan Processing: Canara Bank offers hassle-free processing for two-wheeler loans, ensuring quick disbursement to help you buy your desired vehicle without delay.
- Affordable Rates: With competitive interest rates, Canara Bank makes it affordable for you to own your dream two-wheeler.
- Flexible Loan Repayment Options: You can choose a loan tenure that fits your budget, ensuring that your EMIs remain manageable.
Check Out: Latest Canara Bank Personal Loan Interest Rate
Conclusion
Canara Bank offers flexible and competitive two-wheeler loan interest rates tailored to your credit risk profile. Whether you choose a fixed-rate loan for stable EMIs or an RLLR-linked loan for potential savings in the future, understanding how interest rates work will help you plan better. Make sure to check your Credit Risk Group (CRG) and compare both fixed and floating rate options before applying for a loan.
For personalized loan options and the best interest rates tailored to your financial profile, it’s always advisable to contact Canara Bank directly or visit a branch.
If you’re looking for additional loan options, you can also explore platforms like Buddy Loan. Buddy Loan is a digital fintech marketplace that connects borrowers to a wide network of verified lenders, helping you find the most suitable two-wheeler loan for your needs.
Check your credit score for FREE with Buddy Loan and find the best personal loan offers today!
Download the Buddy Loan app now!
Get the free Buddy Loan app on your phone
