Purpose
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- For purchase of
- New Four Wheeler
- Used Four Wheeler (Age not more than 3 years)
- Financing of second hand vehicle on the basis of duplicate Registration Certificate is not permitted
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Income Criteria
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- Minimum Gross monthly income :
- 20,000/- p.m for Pensioners
- 25,000/- p.m for Salaried Persons
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Eligible Amount
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- Salaried: 20 times of Gross monthly Salary
- For Professionals and Businessmen: 20 Months Income (average income earned in the last 2 years)
- For Agriculturists: 20 Months Income – to be calculated based on
the income certificate given by Tehsildar, if Tehsildar certificate is not available loans upto Rs 5,00,000/- only can be availed on basis of income assessment by the Branch Manager.
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Take Home Pay
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- Net Take Home Pay after deducting proposed Loan EMI: 40% of Gross Pay
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Maximum Loan Amount
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- Four Wheelers: 100 Lakhs (New Vehicle)
- Four Wheelers: 20 Lakhs (Used Vehicle)
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Rate of Interest
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Margin
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- New Vehicle -15%
- Used Vehicle – 40%
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Security
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- For Loans upto 20 Lakhs:
a) Hypothecation of Vehicle purchased out of the loan amount
b) If considered necessary by the sanctioning authority tangible security / guarantee of spouse/third party to be made available for the advance
- For loans above 20 Lakhs:
a) Hypothecation of Vehicle purchased out of the loan amount
b) For portion beyond Rs.20lakhs, 100% collateral security in the form of EM of immovable properties/ NSC /fixed Deposits / Surrender value of LIC policies to be stipulated
c) Suitable third party guarantee is desirable
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Guarantee
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- If income of spouse is included -guarantee of spouse
- For all Vehicle Loans - guarantee of spouse / third party guarantee (in case spouse is not available / unmarried) may be insisted
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Lien
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- Bank’s lien will be noted in RC Book. In case of second hand vehicles, no prior lien should persist on the vehicle
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Repayment Period
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- New Vehicle - Maximum up to 84 months
- Used Vehicle - Repayment period should be fixed based on the age of vehicle subject to a max. Period of 60 months
Age of the Vehicle |
Repayment Period |
Upto 2 years |
60 Months |
Above 2 years upto 3 years |
48 Months |
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Processing Charges
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