Purpose – To purchase New Car/Van/Jeep, Old car/van/jeep which is not older than three years
Eligibility – Individuals; Business concerns (corporate or non-corporate), Farmers having irrigated land holding of 10 acres and above are eligible unlike other car loan
Quantum of Loan – For individuals: 25 times their Net Monthly Salary / Income or Rs.7 lakhs, whichever is lower. Income of spouse can be taken into account for determining loan amount. In such cases, the spouse shall stand as a guarantor.
For Business Concerns: (Corporate or Non-Corporate) No ceiling in loan amount is proposed as business concerns may require one or more vehicle costing above Rs. 7 lakhs. Sanctioning authority to deal with such proposals as conventional term loan proposal and should satisfy about the earning / repaying capacity of the business concern.
Margin – 20%
Security – hypothecation of vehicle purchased
Repayment of Loan – For New Car/Van/Jeep: The loan amount together with interest is to be repaid maximum in 84 equated monthly installments comprising of principal and interest.
For Old Car/Van/Jeep: The loan amount together with interest is to be repaid maximum in 60 equated monthly installments