Vehicle Loan

A.SCHEME FOR FINANCING TWO WHEELERS TO PUBLIC

PURPOSE:

For purchase of New two wheelers viz:- scooter(s), motor cycle(s), scooterette(s), moped(s) ( subject to Registration of the vehicle with RTO)

ELIGIBILITY:

An individual in the age group of 18 years and 60 years holding valid driving license.
Students 18 years and above till gainfully employed with salaried parents as co-borrower drawing salary from our Bank.
Existing customers having satisfactory transactional record of six months or new customer with satisfactory track record of last one year with other Banks/FI.
Business Concerns (Corporate/Non-Corporate) Such proposal be dealt with as conventional term loan after being satisfied about the income/ repaying capacity.

LOAN AMOUNT:

MARGIN: (as %age of on road price)

10% for those drawing salary from our Bank and / or with check off facility.
25% for all other borrowers
On Road Price means Invoice Value + Cost of one time Road Tax + first time comprehensive Insurance premium of one year.
Cut Back (Total Deductions) including EMI of proposed loan shall not exceed 50% of Total Gross Income.

INCOME CRITERIA/PRE – REQUISITES:

Minimum net monthly income of Rs. 10,000/- p.m. In case of farmers, where no income proof is available income be assessed by Branch Manager.
In case of students, income / salary proof of parents/guardians, who will be co-borrower, be considered.
Income of spouse can be taken into consideration for determining the income criteria provided satisfactory income proof is produced.
Income of Business concerns be verified from Income Tax Returns filed and Challans for tax deposited. Documentary evidence less deductions for various loan installments, provident fund, income tax and other statutory dues etc.

REPAYMENT:

GUARANTEE:

PURPOSE:

TO PURCHASE

ELIGIBILITY:

(Note: Minimum net monthly salary/pension/income – Rs. 20000/-)

EXTENT OF LOAN:

FOR INDIVIDUALS/PROPRIETORSHIP CONCERNS:

25 times of Net Monthly Salary / Income /pension with a ceiling of Rs.100 Lakh (for one or more vehicles).
Income of Parent(s)/Spouse/earning children can be taken into account for determining loan amount. In such cases, the parent(s)/spouse/earning children shall stand co-borrower.
Out of above, only one co-borrower shall be permitted and only his/her income shall be taken into consideration for determining the loan amount.

FOR BUSINESS CONCERNS:

No ceiling of loan amount (for one or more vehicles).
For business concerns minimum DSCR should be at least 1.50:1 and minimum two year ITRs and balance sheets to be obtained and perused

MARGIN NORMS:

FOR NEW VEHICLE:

15%. Of on-road price.
10% of on-road price or NIL on ex-showroom price in case of Bank is having Tie-up with Manufacturer/dealer

(Note: Cost of one-time Road Tax and Insurance charges may be considered towards margin money.)

RATE OF INTEREST:

Loan for car to public under tie up arrangement – 9.60%PA.
For central/state government employee/defense personnel and para military forces RoI is -9.55%PA.

FOR OLD VEHICLES:

30% of the value of the vehicle and the Valuation of old vehicles to be done at current invoice price of the new vehicle less depreciation @ 15% p.a. on straight line method.

REPAYMENT PERIOD: