Vananchal Gramin Bank – Vehicle Loan

By | July 8, 2011

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/-

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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