Vehicle Loans
Age Limit
21 – 60 Years
Finance
75% – 85% of Vehicle Cost
Repayment
3 – 7 Years (36–84 EMIs)
Processing Fee
0.50% of Loan Amount
Purpose
New Car / Jeep / Motorcycle
For personal use, business use, or taxi purposes
Second-Hand Four Wheeler
True Value vehicles — not more than 3 years old
Financial Assistance & Margin
| Vehicle Type | Finance | Margin |
|---|---|---|
| New Vehicle | 75%–85% of vehicle cost incl. registration | 15% – 25% |
| Second-Hand Vehicle | 75%–85% of cost or 30× monthly income (min) | 40% – 50% |
Sanctioned amount is whichever is minimum — 75%–85% of vehicle cost including registration charges, or 30 times of monthly income.
Disbursement Process
After execution of loan documents, the sanctioned loan amount plus margin money will be disbursed directly to the dealer / seller via cheque / DD in the dealer's name. A forwarding letter is issued stating that hypothecation of the vehicle in favour of the Bank shall be endorsed on the Registration Certificate (RTO) and on the Insurance Policy.
Documents to be collected from the borrower
Photocopy of invoice — verified with original by Branch Manager, bank seal affixed with hypothecation note
Receipts of payments made by the party and the bank to the dealer
Photocopy of Registration Certificate (RTO) confirming hypothecation endorsement in favour of the Bank
Photocopy of Insurance Policy / Cover Note with hypothecation endorsement in favour of the Bank
Chassis No. / Engine No. verified from physical inspection of the vehicle against Registration Certificate
Security
Primary Security
Hypothecation of the vehicle (car / jeep / motorcycle) being financed by the Bank. An accidental / LIC policy of the borrower may also be insisted upon.
Additional Security — Four Wheeler above ₹6 Lakh (repayment 60–72 months)
An additional security of immovable property will be required.
Additional Security — Taxi Purpose Vehicles
Additional security of immovable property may be insisted upon. Tax paid receipt, permit copy, and fitness certificate must be obtained for Bank records.
Guarantee Norms
Loan up to ₹1 Lakh
No guarantee required. Co-borrower must be insisted upon.
Loan above ₹1 Lakh
Third-party personal guarantee of 1 person with adequate net worth required.
Age (Borrower)
21 – 60 years
Co-borrower
Required if age > 60 yrs
Repayment Tenure
36 – 84 months
PDC Required
Yes — monthly instalments
Interest Rate
As applicable from time to time
Processing Fee
0.50% of loan amount
Second-Hand Vehicles
Only True Value four-wheelers not more than 3 years old are eligible for financing.
Purpose
Purchase / Construction of Shop
Age Limit
Max 60 Years
Repayment
Max 120 Months (10 Years)
Processing Fee
0.50% of Loan Amount
Purpose / Object
Financial assistance to meet various needs of individuals, self-employed persons, professionals, and business persons for purchase or construction of commercial building / shop.
Loan Amount Assessment
Income Based
48× monthly income OR 4× yearly income
Project Report
On the basis of project report submitted
Registered Value
25% of registered value (including registry expenses)
Exposure Limit
Maximum amount up to Bank's exposure limit
Relaxation
In genuine cases, loan limit up to 5× annual income may be considered. Margin relaxation up to 5% (i.e., up to 80% of registered value including registry charges).
Security
Equitable mortgage of legally acceptable title documents of non-encumbered shop / commercial building / urban property — self-occupied or vacant, not mortgaged to any institution or bank.
For Shop Purchased from Builder in Commercial Complex
Original stamped agreement executed with the builder on ₹500/- stamp paper
Receipts of payments made to the builder
Certified copy of permission letter granted by competent authority to the builder
Certified copy of approved plan of building / commercial complex
Any other document if required by the Bank
Disbursement
Term Loan: After execution of loan documents and furnishing of title documents, the sanctioned loan amount can be disbursed in one or two instalments as per the applicant's / borrower's need.
Eligibility
Self-Employed Persons
Professionals
Businessmen / Income Tax Payees
Trust, Firm, Partnership, Pvt./Ltd. Company
Age Limit
Max 60 years
Repayment
Max 120 months (10 years)
Recovery Mode
Monthly instalments via PDC
Interest Rate
Prevailing rate (monthly)
Processing Fee
0.50% of loan amount
Personal Guarantee
2 third-party guarantors required
Personal Guarantee
Besides primary security, third-party personal guarantee of 2 persons with good credentials and adequate net worth is required.