Scheme For Financing Purchase Of Car By Public |
Objective |
To make Loan available to prospective borrowers for purchase of car on attractive terms. |
Purpose |
To purchase: |
New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV). |
Old car/van/jeep/MUV/SUV, which are not older than three years and unencumbered (i.e not financed by other Bank/Financial institutions on the date of loan). |
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Eligibility |
For private use only. |
Individuals and Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children. (whether married or unmarried)/Earning daughter in law |
Business concerns (corporate or non-corporate). Company /Firm to be in cash profit for the last two years |
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Income Criteria |
Minimum net monthly salary / pension/ income - Rs.20000/- |
Income of Parent(s)/Spouse/ Earning Children can be added for determining loan amount/eligibility. However, out of above income of only one person can be added and he/she will stand as a co-borrower. |
No minimum monthly income is required in cases where borrower agrees to give 110% of liquid security in shape of Term Deposit. |
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Quantum of Finance |
For individuals/Proprietorship concerns: 25 times of Gross Monthly Salary/ Pension/ Income with a ceiling of Rs 25 lakh (for one or more vehicles). |
For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles). |
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Margin |
For New Vehicle: 15% of on-road price inclusive of one time road tax & insurance. |
For Old Vehicles: 30% of the value of the vehicle. |
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Security |
Vehicle purchased to be hypothecated to the bank. |
Guarantee/ Collateral Security |
Third party guarantee / collateral security as follows: |
1. No guarantee required for permanent employees of Central Govt./ State Govt./ PSBs/MNCs/ Listed companies of BSE or NSC whose shares are actively traded and quoted above par irrespective of income. |
For all other cases Third Party guarantee/ Collateral Security acceptable to the Bank. |
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Repayment (Maximum) |
For New Car/Van/Jeep/MUV/SUV: 84 EMIs |
For Old Car/Van/Jeep/ MUV/SUV: 60 EMIs |
(Repayment to be ensured within 70 years for salaried persons with pension and pensioners. For others repayment to be ensures within 65 years of age) |
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Prepayment Charges |
Floating Rate: NO pre-payment charges. |
Fixed rate: @2% on the outstanding pre-paid. However, no prepayment charges to be levied :- |
Where the loans are prepaid by the borrowers from their own sources. |
Where the borrower shift to other bank within 30 days from the date of upward revision in the rate of interest or change in other terms of sanction. |
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Rate of Interest |
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Processing Charges/ Upfront fee |
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Documentation Charges |
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