Purpose

1. Purchase of new Vehicle for personal use/official use for Companies /Partnership Firms.
2. Purchase of pre-owned vehicle, which is not more than 3 years old for personal use/official use for Companies /Partnership Firms.
3. The term Vehicles includes : Car, Van, JEEP, Multi Utility Vehicles (MUVs).

Target Group

1. Our existing corporate customers, their Directors and employees.
2. Full-time permanent employees of Govt. / Quasi Govt. Undertakings / Public Sector Corporations / Companies of repute / Institutions / Medical & Engineering Colleges / Universities, who have served at least for three years and have still 5 years of service to put in before the date of their normal retirement.
3. Eminent professionals like Doctors, Lawyers, Chartered Accountants, Engineers as also Businessmen with proven track record.
4. Partnership Firms and Corporate accounts.
5. Agriculturist having income to repay the loan.
6. Pensioners of Central, State Govt. and our Bank’s employee pensioners, who are drawing pension from our branches.

Eligibility(Income)

1. Salaried Person: Minimum monthly gross income of Rs.15, 000/- and above per month, having a net take home pay of at least 50%, after adjustment of the monthly installments of proposed loan, within the permissible repayment period.
2. Agriculturist: Minimum 5 acres of irrigated land should be owned. However, take home criteria after deduction of proposed installment will be 40%, after adjustment of all existing deductions (If any) and the monthly installment of proposed loan.
3. Professional & Self-Employed / Businessmen: An IT assessee.  For full collateral security, IT assessment order / IT return may be waived. However, take home criteria after deduction of proposed installment will be 40%, after adjustment of all existing deductions (If any) and the monthly installment of proposed loan.
4. Retired individuals: Drawing monthly pension of Rs 15000/= and above. However, net take home pension of at least 50%, of gross pension after considering all existing deductions (If any) and the monthly installment of proposed loan.
5. Firm/ Companies: Net profit is sufficient to meet repayment of Car Loan

Margin

1. For New Vehicle: 15% of the cost of vehicle on Road (i.e. one time registration + first time Road tax & insurance charges etc.).
2. For Pre-owned Vehicle – the loan amount will be restricted to 85% of the“Agreed Purchase Price” or 60% of the Valuation of the Vehicle, whichever is lower.

Eligibility (Service Period of Applicant/ Repayment Age/Age of Firm & Company)

1. Salaried Person: The applicant should be a permanent employee and the loan should be repaid at least three months before his date of retirement from service.
2. Other than Salaried person: Repayment period will be allowed in such a way that loan is repaid before attaining the age of 70 years.
3. Firm/ Companies: should have been in existence for at least 2 years.

Loan Limit

1. Upto a Maximum of 2 times of Net Annual Income / Net Annual Salary.
2. Income of spouse can also be clubbed provided the spouse becomes a co-borrower/ guarantor.
3. Income of son/ unmarried daughter/ father/ mother can also be clubbed, provided he/she/ they become a co-borrower

No of vehicle

Maximum number of Car for partnership Firms and Companies may be allowed by various authorities as under:-
Partnership Firms -10
Companies – 15

(Based on internal discretionary authority at various levels)]

Click here for Rate of interest

Click here for Processing Fees, Prepayment Penalty, Documentation Charges, Mortgage and other charges

Security In both cases (New / Pre-owned Vehicle)

Primary :  Hypothecation of Vehicle

Collateral : Guarantee of the Spouse if his / her income is considered for eligibility irrespective of loan amount.

For loans Upto Rs. 10.00 lac Guarantee of one person of means and standing acceptable to the Bank. Wherever possible additional security such as LIC policy, DDP etc. be obtained.

For loans above Rs. 10.00 lac Pledge of FDR/NSC/KVP etc. and/or assignment of Life Insurance Policy having surrender value covering the full value of loan amount

Or

Mortgage of House/Flat having a market value covering full value of loan amount. Or

Partly by immovable relative property and partly by security such as NSC/KVP/LIC Policy (Surrender value) or Bank’s own deposit etc. covering full value of loan amount.

Repayment Period

For New Vehicle:

• Individuals: Maximum 84 Months
• For Firm/ Companies: Maximum 60 Months

For Pre-owned Vehicle: Maximum 60 months / Residual life of the vehicle, whichever is lower. (Residual life certificate to be obtained from a reputed Garage)

Registration of Vehicle

Vehicle financed will be registered with RTA in Joint name of Borrower & Bank

Insurance

Comprehensive insurance of the vehicles with Bank’s clause.

In case of pre-owned vehicle, the existing insurance policy, if any, to be transferred in the name of borrower with bank’s clause.

Mode of Repayment

• Salary tie-up/ Standing instruction for the account maintained with us with undertaking to maintain sufficient balance in the deposit account for servicing the EMIs. In addition, 3 PDCs be obtained for use in case balance in the account linked to Salary tie-up/ Standing instruction is inadequate to realise EMIs
• In case of Salary tie-up/ Standing instruction is not available: It is mandatory to obtain initially PDCs for next 24 months and thereafter 12 advance PDCs should be obtained every year with undertaking to maintain sufficient balance in the deposit account.

Valuation in case of Pre owned vehicle

Valuation of the vehicle may be done by the Approved Automobile Valuer e.g., Automobile Association of India / True Valuation Certification granted by exclusive True Value Outlets of Maruti Suzuki India Ltd.

It will be ensured that the “Agreed Purchase Price” between the seller and buyer does not exceed “Valuation of the Vehicle.”

Example: Say, Valuation of Pre-owned vehicle is Rs. 2.50 lacs and the seller agrees to sell the same to the buyer (our customer) at Rs. 2.00 lac.

In this case, 85% of the “Agreed Purchase Price” Rs. 1.70 lac.
60% of the “Valuation of the Vehicle.”  : Rs. 1.50 lac

Thus the Maximum Loan amount will be Rs.1.50 lac with Margin of Rs.0.50 lac.

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