SCHEME FOR FINANCING PURCHASE OF CAR
- New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles(SUV)
- Old car/van/jeep, which are not older than three years.
- Individuals, Joint Borrowers are also eligible.
- Business concerns (corporate or non-corporate).
- Agriculturalists owning irrigated minimum land holding of 5 acres or equivalent individually.
QUANTUM OF LOAN:
For individuals/Proprietorship concerns :
- 20 times of Net Monthly Salary / Income with a ceiling of Rs.25 lakh (for one or more vehicles).
- 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.
- 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).
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
- Hypothecation of vehicle purchased out of loan proceeds.
Guarantee/ Collateral Security
- Guarantee of spouse, if employed/ earning
- Suitable third party guarantee
- Collateral security in the shape of either IP or liquid security equivalent to 100% of the loan amount.
- Maximum 60 months for old car & 84 months for new car.