Purpose: This loan finances purchase of vehicles for both personal and commercial use.
Eligibility: Any individual or businessman can avail this loan
Quantum of Loan: The maximum amount that could be granted as loan is Rs. 50,000/- . The cost of vehicle calculated will include the value of RTO tax, Sales Tax, Insurance, HPA but shall not include cost of additional accessories.
Margin: 20 % of the invoice value forms the margin for the loan.
Rate of Interest: The rate of interest is 13.5% per annum for two wheeler loans. In case of loans for vehicles other than two wheelers for commercial purpose, the rate of interest is 12.5% per annum. In case of loans for vehicles other than two wheelers for personal use, (i.e. for car loan) the rate of interest is 11.5% per annum.
Repayment: The maximum period for repayment of the loan is 36 months. The repayment has to be done through monthly installment payments.
Other features: One installment of loan repayment has to be paid in advance / before disbursement of the loan. Insurance of the vehicle will have to be taken in the name of the Bank.