Purpose – The loan is offered for the purchase of 2nd hand Car
Eligibility – Any individual bonafide member of the bank, having minimum monthly salary of Rs. 10,000/- are eligible for the car loan
Quantum of loan – Rs. 3 Lakhs or 30 months’ income of the borrower whichever is less.
Margin – 50 % of the value of Car as assessed and certified by any of the company’s (Manufacturer of the relative vehicle) authorized workshop or by Automobile Association of India along with expected life of the vehicle.
Security – Hypothecation of vehicle financed by the Bank
Collateral Security – Mortgage of immovable property or pledge of any other security of adequate value to the satisfaction of the Bank
Repayment – Up to a maximum of 60 equal monthly installments with interest, subject to repaying capacity of the borrower or residual life of the Vehicle whichever is earlier;
Rate of Interest – As per Bank’s rules from time to time
Other Conditions – Payment direct to the Vendor for full cost of the Vehicle as per Performa Invoice, subject to recovery of margin money from the borrower; Insurance of the Vehicle at the cost of the borrower; Copies of Invoice and Receipt to be obtained and kept on record till the liquidation of Bank’s entire dues; Registration of Bank’s charge with RTO.