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
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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 Tahasildar
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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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Rate of Interest
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- Upto 20 Lakhs (New Vehicle) - 8.9%
- Upto 20 Lakhs (Used Vehicle) - 12.9%
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Margin
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- New Vehicle -15%
- Used Vehicle – 40%
- For Farmers (New/used) – 40%
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Security
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- For Loans upto 10 Lakhs:
a) Hypothecation of Vehicle purchased out of the loan amount
b) If considered necessary by the sanctioning authority tangible security / guarantee to be made available for the advance
- For loans above 10 Lakhs:
a) Hypothecation of Vehicle purchased out of the loan amount
b) For portion beyond Rs.10lakhs, 100% collateral security in the form of EM of 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 (in case spouse is not available / unmarried)
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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 |
Above 3 years upto 4 years |
36 Moonths |
Above 4 years upto 5 years |
24 Months |
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Processing Charges
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