Salaried employees, Professionals, Self-employed Salaried employees, Professionals, Self-employed Non-Resident Indians- advance to be granted jointly with Resident Indians (close relative) (Age of the individual borrower not to exceed 65 years at the time of availing the advance) Companies, Partnership Firms, Proprietary concern and other types of Corporate entities. HUFs not Eligible
Purpose
Purchase of two/four wheeler vehicles (not requiring heavy duty license). For purchase of used/second hand 2 and 4 wheeler. (age of the vehicle not to exceed 3 years)
Reimbursement of cost of four wheeler purchased from own sources
Type of Advance
Demand Loan /Term Loan (for 2nd hand vehicles only Demand Loan)
Quantum of Loan
Maximum limits for finance :
Individuals (Resident in India)
For Indian make vehicles - Rs.50 lacs
For Companies and corporate entities - Rs.100 lacs.
For Companies and corporate entities - Rs.200 lacs (Can be a fleet of vehicles)
Non-resident Indians - Rs.50 lacs.
The limits are subject to :24 times of gross monthly emoluments in case of salaried employees/pension/ or two times of gross average annual income as per last 3 years I.T. Returns
Two times average annual cash accrual (i.e. PAT + Dep.) as per firms/ companies last 3 years audited balance sheet, P&L A/c.
Net take home pay :
Gross Monthly Income
% of NTHP
Up to Rs.1.00 lacs
40 %
Rs. 1.00 lacs upto Rs.5.00 lacs
30%
Above Rs.5.00 lacs
25%
For Others: DSCR: Min.1.5
Repayment (New Vehicles)
For Individuals - for new vehicles
4 wheelers - Max. 7 years.
2 wheelers - Max. 5 years.
For Corporates/Firms, etc. - Max. 5 years.
For second hand vehicles - Max. 3 years.
Security
Hypothecation of vehicle to be purchased out of Bank finance.
Charge to be registered with RTO.
Third party guarantee required in the following cases
Loans to NRIs – Guarantee of Resident Indian is required.
Loans to NRIs – Guarantee of Resident Indian is required.
Margin
Individuals (including NRIs) : (For new vehicles)
Amount
Margin -%
Upto Rs.10 lacs
NIL Margin On Ex. show room Price -excluding comprehensive Insurance, Taxes and Registration charges
Above Rs.10 Lacs to Rs.25 Lacs
15% Margin On Road Price - including comprehensive Insurance Taxes and Registration charges
Above Rs.10 Lacs to Rs.25 Lacs
25% Margin On Road Price - including comprehensive Insurance Taxes and Registration charges
For Corporate entities/firms, etcMin. 25%
For second hand vehicles Min. 30% ( on depreciated value or value assessed by Valuer or sale consideration whichever is lower)
Rate of Interest
Particulars
Rate of interest
4 Wheelers / 2 Wheelers including Super Bikes:
New & 2nd Hand Vehicle -
For New Two wheeler/2nd hand vehicles (both 2/4 wheeler)
1% of loan amount minimum Rs.500/- and Max.Rs.10,000
In case of Partnership firms and Corporate
borrowers, processing charges will be double that applicable to individuals. No processing charges for Senior Citizen, Retired Employees of the Bank and Pensioners drawing Pension from the Bank.
For Rural areas:
Processing charges will be 75% of that applicable to individual borrowers provided loan is availed by borrowers from rural areas/ from rural branches.
