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VEHICLE LOAN

ELIGIBILITY

  • Individual/firm - for personal use.
  • Individual/firm - for professionals.
  • Individual/firm - for taxi purposes.

AGE LIMIT

Individual having age between 21 years to 60 years. If age is above 60 years, then co-borrower is insisted upon.


PURPOSES

Vehicle Loan will be granted for purchase of vehicle including car/ jeep/motorcycle for personal use, business use and also for taxi purposes.


FINANCIAL ASSISTANCE

70% of the cost of vehicle including registration charges or 30 times of monthly income whichever is maximum.


MARGIN

25-30% margin be kept on the cost of vehicle including registration charges.


DISBURSEMENT

After execution of loan documents and obtaining request from the borrower, sanctioned loan amount plus margin money, if any, will be disbursed directly to the dealer/seller. A cheque/DD of the disbursable amount will be issued in the dealer's name with forwarding letter stating that the hypothecation of the vehicle in favour of the bank should be endorsed on the registration of the vehicle to be issued from R.T.O. Similarly, an endorsement of hypothecation will be made on the Insurance Policy.

While releasing the sanctioned loan, Branch Manager will ascertain that the borrower has paid some contribution to the dealer/seller as advance money and receipt of the same is furnished or his contribution will be got deposited with the bank and a DD/cheque of the total payment of sanctioned loan so as to ensure that full amount of the vehicle is paid to the dealer/seller.

Branch Manager will take following documents from the borrower

  1. Photocopy of the invoice to be verified by the Branch Manager with original & seal of the bank to be affixed on original specifying hypothecation in favour of the bank.
  2. Receipts of the payments made by the party and the bank to the dealer.
  3. Photocopy of the Registration Certificate of the vehicle issued by the RTO, verifying an endorsement in favour of the Bank.
  4. Photocopy of the Insurance Policy/Cover Note after verifying an endorsement in favour of the Bank.
  5. The chasis no./engine no., mentioned on the Registration Certificate be verified from the vehicle at the time of carrying-out the physical inspection of the vehicle.

INTEREST RATE

As applicable from time to time.


REPAYMENT OF LOAN

In 3-5 years (30-60months), depending upon the quantum of loan and repaying capacity of the applicant. PDCs must be obtained for monthly instalments.


SECURITY

Hypothecation of the vehicles i.e. car/jeep/motorcycle etc. which is being financed by the bank. An accidental/LIC Policy of the borrower can also be insisted upon.


ADDITIONAL SECURITY

If loan to be considered for the vehicle to be used for taxi purposes then an additional security of immovable property may be insisted upon. Tax paid receipt, permit copy and fitness certificate to be obtained for Bank record.


GUARANTEE

The third party personal guarantee of one persons having adequate net worth will be insisted upon.


PROCESSING FEE

As per norms may be charged. (0.50% of the loan amount)