Vehicle Loan

OBJECT:
To provide financial assistance for purchase of new car/jeep, motorcycle etc.
ELIGIBILITY:
i) Individual/firm- for personal use
ii) Individual/firm- for professionals
iii) Individual/firm- for taxi purposes
AGE LIMIT:
Individual having age between 21years to 60 years. If age is above 60 years, then coborrower is insisted upon.
PURPOSES:
Vehicle Loan may be granted for purchase of new vehicle including car/jeep/motorcycle for personal use, business use and also for taxi purposes.
FINANCIAL ASSISTANCE:
70% of the cost of vehicle including registration charges or 30 times of monthly income whichever is maximum.
MARGIN:
25-30% margin be kept on the cost of vehicle including registration charges.

DISBURSEMENT:
After execution of loan documents and obtaining request from the borrower, 90% of the sanctioned loan amount may be disbursed directly to the dealer. A cheque/DD of the disbursable amount may be issued in the dealer’s name with a forwarding letter stating that the hypothecation of the vehicle in favour of the bank should be endorsed on the registration of the vehicle to be issued from RTO. Similarly, an endorsement of
hypothecation should be made on the Insurance Policy. While releasing the disbursement of 90% of the sanctioned loan, Branch Manager should ascertained that the borrower has paid his contribution to the dealer and receipt of the same is furnished or his contribution may be got deposited with the bank and a DD/cheque of the total payment (90% of sanctioned loan and contribution of the borrower) may be issued to the dealer so as to ensure that full amount of the vehicle is paid to the dealer.

Remaining amount of 10% of sanctioned loan amount may be released to the borrower after obtaining the following documents:
i) Photocopy of the invoice to be verified by the Branch Manager with original & seal of the bank to be affixed on original specifying hypothecation in favour of the bank.
ii) Receipts of the payments made by the party and the bank to the dealer.
iii) Photocopy of the Registration Certificate of the vehicle issued by the RTO, verifying an endorsement in favour of the Bank.
iv) Photocopy of the Insurance Policy/Cover Note after verifying an endorsement in favour of the Bank.
v) The chasis no./engine no., mentioned on the Registration Certificate be verified from the vehicle at the time of carrying-out the physical inspection of the vehicle.
INTEREST RATE:
As applicable from time to time.
REPAYMENT OF LOAN:
In 3-5 years (36-60 months), depending upon the quantum of loan and repaying capacity of the applicant. PDC’s must be obtained for monthly installments.
SECURITY:
Hypothecation of the vehicles i.e. car/jeep, motorcycle etc. which is being financed by the bank. If system exists, an accidental/LIC Policy of the borrower may also be insisted upon.
Additional Security:
If loan is to be considered for the vehicle to be used for taxi purposes then an additional security of immovable property may be insisted upon.
GUARANTEE:
The third party personal guarantee of two persons having adequate net worth may be insisted upon.
PROCESSING FEE:
As per norms may be charged.
OTHER GENERAL TERMS & CONDITIONS:
All usual other terms & conditions of the bank including prepayment charges, if applicable, may be specified.