Sarva U.P.Gramin Bank, sponsored by Punjab National Bank one of the leading commercial Bank of India, came into existence by amalgamation of 4 RRBs. The Bank has its Head Office in Meerut.
Purpose: This loan finances purchase of new / old cars, van jeep.
Eligibility: Any individual with sufficient income to repay the loan can avail this car loan.
Quantum of Loan: The maximum amount that is granted as loan is 25 Times monthly net Income subject to a maximum of Rs.7 lakh.
Margin: There is a margin of 20%
Rate of Interest: The rate of interest for car loan up to Rs.2 lakh is 11.5% per annum [Quarterly Compounding]. For loans above Rs.2 lakh, the rate of interest is 12% per annum [Quarterly Compounding]
Repayment: In case of new vehicle, the repayment has to be done in 84 months and in case of old vehicle the repayment has to be done in 60 months. For Agriculturists the repayment may be done in half yearly / annual installments in 7 years for new vehicles and 5 years for old vehicles.
Security: Hypothecation of vehicle is taken as the primary security for the car loan. Collateral security could be guarantee of spouse if employed or third party guarantee or collateral security in any other forms.