Loans
Car Loan

SCHEME FOR FINANCING PURCHASE OF CAR

PURPOSE:

  1. New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles(SUV)
  2. Old car/van/jeep, which are not older than three years.

ELIGIBILITY:

  1. Individuals, Joint Borrowers are also eligible.
  2. Business concerns (corporate or non-corporate).  
  3. Agriculturalists owning irrigated minimum land holding of 5 acres or equivalent individually. 

QUANTUM OF LOAN:

For individuals/Proprietorship  concerns :

  1. 20 times of Net Monthly Salary / Income   with a ceiling of Rs.25 lakh (for one or more vehicles).
  2. Income of Parent(s)/Spouse can be taken into account for determining loan amount. In such cases, the parent(s)/spouse shall stand co-borrower.
  3. Out of above, only one co-borrower shall be permitted and only his/her income shall be taken into consideration for determining the loan amount.

For Business Concerns:

  • No ceiling of loan amount (for one or more vehicles).

Margin

i). NEW CAR:

  • 15%. of on-road price.
  • 10% of on-road price in case of Tie-up with Manufacturer/dealer.

ii). OLD CAR:

  • 30%  of the value of the vehicle.
  • Valuation of old vehicles to be done at current invoice price of the new vehicle less depreciation @ 15% p.a. on straight line method.  Proportionate depreciation for any part of the year to be arrived at/calculated on quarterly basis

SECURITY:

  • Hypothecation of vehicle purchased out of loan proceeds.

Guarantee/ Collateral Security

  1. Guarantee of spouse, if employed/ earning

OR

  1. Suitable third party guarantee

OR

  1. Collateral security in the shape of either IP or liquid security equivalent to 100% of the loan amount.

 

REPAYMENT:

  • Maximum 60 months for old car & 84 months for new car.

 

 

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