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Purpose
For purchase of new vehicle for personal use only. Also, for purchase of pre-owned vehicle, which is not more than 3 years old for personal use only. The Term vehicle includes Car, Van, and Jeep, Multi Utility Vehicle (MUVs).
Eligibility
- Salaried Person: Minimum monthly gross income of Rs.10,000 (In case of full collateral/salary tie-up, minimum monthly gross income would be Rs.5,000).
- Agriculturist: Minimum 5 acres of irrigated land should be owned.
- Professional Self-Employed/Businessmen: Must be an IT assessee. For full collateral security, IT assessment order / IT return may be waved.
In all the 3 categories is should be ensured that the Car Loan is fully repaid before the borrower attains 70 years of age.
Rate of interest
|
Category |
ROI (w.e.f 10.02.2008) |
| i. |
Full collateral security / Salary Tie-up/Doctors/ Medical Practitioner |
PLR-1.50% |
| ii. |
Others |
PLR-1.00% |
Note: Further 0.50% rebate if repayment is contracted for 24 months or earlier.
Maximum Loan Amount:
Upto a Maximum of 2 times of Net Annual Income / Net Annual Salary.
Margin:
- For New Vehicle: 15% of the cost of vehicle
- 2. In case of purchase of Pre-owned Vehicle, the loan amount will be restricted to 85% of the "Agreed Purchase Price" or 60% of the Valuation of the Vehicle, whichever is lower.
Repayment Period:
- For New Vehicle: Maximum 84 months
- For Pre-owned Vehicle: Maximum 60 months / Residual life of the vehicle, whichever is lower.
Monthly instalments for the repayment of loan should not normally exceed 60% of gross monthly income of the applicant.
Repayment should be by Post Dated Cheques.
Security:
- Hypothecation of Vehicle and Registration with RTA with Bank's Clause.
- Guarantee of the Spouse if his/ her income is considered for eligibility.
- Comprehensive Insurance of the Vehicle with Bank's clause.
- Collateral security is not mandatory.
Processing fee
For Salaried Persons: Nil
For Others: 1% of loan amount, minimum Rs 2,000/-
Prepayment Fees
2.00% of outstanding balance if prepaid within 1 year, after that
1.00% only in case of takeover
Others:
Income of spouse can be clubbed.
Click here for the
application form
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