Vehicle Loans

Vehicle Loans

Purpose

• Purchase of two wheelers – only new vehicles
• Purchase of four wheelers – new/used vehicles

Eligibility

• Individual Indian Citizens
  • Minimum age is 18 years & maximum age is 65 years
  • Minimum annual income Rs.1.00 lakh for two wheeler
  • Minimum annual income Rs.2.00 lakh for four wheeler
• Sole Proprietorship Concern/Partnership Firm/Companies

Quantum of Loan

• Two Wheeler: Maximum upto Rs.3.00 lakh
• Four Wheeler: No upper ceiling

Assessment of loan quantum

• Salaried Individuals:
  • Take Home Pay after deduction of all repayment/expenditure obligations including vehicle loan repayment should be greater than or equal to 40.00% of the applicants gross monthly income as per pay slip/Form 16/ITRs.
• Non Salaried Individuals/Firms/Companies:
  • Net Annual Income after deduction of all repayment/expenditure obligations including vehicle loan repayment should be greater than or equal to 40.00% of the gross annual income as per ITRs.
• For Agriculturists:
  • Net Annual Income after deduction of all repayment/expenditure obligations including vehicle loan repayment should be greater than or equal to 40.00% of the gross annual income as per Branch Manager Assessment.

Your Share/Margin

• For new vehicles:

  Category	Existing Borrower	New Applicant
  Two Wheeler	20.00%	25.00%
  Four Wheeler	15.00%	20.00%

• For used four wheelers: 30% of the purchase cost

Moratorium Period

• No moratorium period

Repayment

• For all vehicle loans:

  Category	Agriculturists	Non Agriculturists
  Two Wheeler	5 years	5 years
  Four Wheeler	7 years	7 years

• Mode of repayment:
  • For non-agriculturists: EMIs
  • For agriculturists: Equated Monthly/Quarterly/Half-Yearly & Yearly Installments

ROI & Processing Fee

• As per bank’s internal guidelines from time to time

Security

• For loans upto Rs.1.00 lakh:
  • Hypothecation charge on the vehicle financed by the Bank
• For loans in between Rs.1.00 lakh to Rs.25.00 lakh:
  • Hypothecation charge on the vehicle financed by the Bank
  • 12 post dated cheques
• For loans above Rs.25.00 lakh:
  • Hypothecation charge on the vehicle financed by the Bank
  • 12 post dated cheques
  • Collateral security worth 150% of the loan quantum

Guarantee

• For Individuals:
  • Loan amount less than or equal to Rs.50,000/-:Guarantee & Loan Co-obligation not required.
  • Loan amount more than Rs.50,000/-:
    a) Spouse/parents/siblings with worth greater than 100% of loan quantum may join as loan co-applicants (or) b) Third Party Guarantee from local person with worth greater than 100% of the loan quantum
• Partnership Firms: Guarantee from all partners
• Company: Guarantee from all Individual Directors of the Company

Insurance

• Vehicle must be insured to its full value with Bank Clause