CAR LOAN

OBJECTIVE

To make Loan available to prospective borrowers for purchase of car on   attractive terms.

PURPOSE

• To purchase: New Car/Van/Jeep/Multi Utility Vehicle (MUV) or               Sports Utility Vehicles (SUV).
• Old car/van/jeep/MUV/SUV, which are not older than three years          and unencumbered (i.e not financed by other Bank/Financial                  institutions on the date of loan).
• Reimbursement of cost of new Car/ Van/ Jeep/ Multi Utility Vehicle (MUV) or Sports Utility Vehicle (SUV) purchased by individual/                      corporate out of own funds. (Not more than 3 months old).

INCOME CRITERIA

Minimum net monthly salary / pension/ income – Rs.25000/-

(Income of Parent(s)/Spouse/ Earning Children can be added for determining loan amount/eligibility. However, 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)

No minimum monthly income is required in cases where borrower agrees to give 110% of liquid security in shape of Term Deposit.

In case of persons engaged in allied agricultural activities and agriculturists, net income can be arrived at by sanctioning authority based on their land holding, cropping pattern, yield, etc.

QUANTAM OF FINANCE

For Individuals/Proprietorship concerns: 25 times of Gross Monthly Salary/ Pension/ Income with a ceiling of Rs 100 lakh (for one or more vehicles).

For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles).

MARGIN

(BORROWER’S CONTIBUTION)

For New Vehicle: 15% of on-road price inclusive of one-time road tax & insurance.

For Old Vehicle: 25% of the value of the vehicle.

Valuation of old vehicles to be done at current invoice value of the 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

Vehicle purchased to be hypothecated to the bank.

GUARANTEE/COLLATERA

SECURITY

Third party guarantee / collateral security as follows:

1. Guarantee acceptable to the Bank in case of Gross Monthly salary is less than Rs. 50,000/-

2. No guarantee required for permanent employees of Central Govt./ State Govt./ PSBs/MNCs/ Listed companies of BSE or NSC whose shares are actively traded and quoted above par irrespective of income.

For all other cases Third Party guarantee/ Collateral Security acceptable to the Bank.

REPAYMENT

For New Car/Van/Jeep/MUV/SUV: Maximum 7 years i.e. 84 EMIs

For Old Car/Van/Jeep/ MUV/SUV: Maximum 5 years i.e. 60 EMIs

For agriculturalists, repayment can be half yearly/yearly coinciding with the time of harvest subject to maximum of 7 years for new vehicle and 5 years for old vehicle.

(Repayment to be ensured within 70 years for salaried persons with pension and pensioners. For others repayment to be ensured within 65 years of age)*

PREPAYMENT CHARGES

Floating Rate: NO pre-payment charges.

Fixed rate: @2% on the outstanding pre-paid.

RATE OF INTEREST

Starting from 8.60% *

PROCESSING CHARGES/

UPFRONT FEES/

DOCUMENTATION CHARGES

0.25% of loan amount (Minimum Rs. 1,000/- and Maximum Rs. 1500/-) excluding GST.

(including documentation charges)

However, charges are waived till 31.12.2023