Purpose – For the purchase a new Car/ Van/ Jeep/Two-wheeler or raise loan to purchase old vehicles that are not older than 3 years. Finance will be provided for purchase of vehicle of indigenous makes.
Eligibility – Individuals as well as Business Concerns (Corporate or non-corporate)
Quantum of Loan – For Individuals: 25 times of the monthly net salary OR Rs.15 lakh 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: No ceiling on loan amount.
Margin – 20%
Security – The vehicle purchased with the amount of loan is to be hypothecated to the Bank. It will be registered in the name of the borrower jointly with the Bank.
Guarantee – Guarantee of spouse, if employed or third party guarantee with 50% liquid security by way of LIC Policy/KVP/IVP/NSC/FD, OR
Collateral Security in the shape of either Immovable Property or Liquid Security equivalent to 100% of loan amount
Repayment – For new Car/ Van/ Jeep: The loan amount together with interest is to be repaid maximum in 84 Equated Monthly Installments (EMIs); for old Car/ Van/ Jeep: The loan amount together with interest is to be repaid maximum in 60 Equated Monthly Installments (EMIs)
Upfront Fee: 1% of the loan amount, with a maximum of Rs.4, 000/-