Vehicle Loan

Purpose:

This loan can be sanctioned for purchase of any kind of vehicle such as two wheelers, cars, jeeps, buses, lorries, auto rickshaws and other vehicles

C.2 Amount of loan:

Maximum loan amount of ₹ 15 lakhs

C.3 Margin:

For new vehicles, 80% of the invoice price will be advanced. If the vehicle proposed to be purchased is a second hand one, it shall not be old for more than 3 years from the date of show room sale. In such cases, loans applied/sanctioned shall not exceed 70% of the estimated /insurable value of the vehicle.

C.4 Period:

The maximum period of loan shall be 7 years for new vehicle. If the vehicle is a second hand one, the maximum period shall be 4 years.

C.5 Security:

The vehicle purchased by availing the loan will be treated as primary security. In addition, collateral security to the satisfaction of the Branch Manager and the sanctioning authority shall be furnished. Landed property, salaried sureties, fixed deposits, pledged insurance policies, gold ornaments etc. can be accepted as securities. The collateral security in the form of landed property shall have a distress value equal to that of the loan amount. The vehicle shall also be hypothecated to the Bank and hypothecation agreement to be executed.