HOME                               Scheme of Conveyance Loan to Public

PURPOSE

  To purchase    

a)       New Car/Van/Jeep

b)      Old car/van/jeep which are not older than three years.               

ELIGIBILITY

i)                   Individuals.

ii)                Business concerns (corporate or non-corporate).                       

iii)  Farmers having irrigated land holding of 10 acres and above.

EXTENT OF LOAN

For individuals:

25 times their Net Monthly Salary / Income or Rs.7 lacs, whichever is lower.

Income of spouse can be taken into account for determining loan amount. In such cases, the spouse shall stand as a guarantor.

For Business Concerns:

(Corporate or Non-Corporate)

No ceiling in loan amount is proposed as business concerns may require one or more vehicle costing above Rs. 7 lac. Sanctioning authority to deal with such proposals as conventional term loan proposal and should satisfy about the earning / repaying capacity of the business concern. 

Margin

20%.  However, cost of one-time Road Tax and Insurance charges be considered towards margin money.

Security

The vehicle purchased with the amount of loan to be hypothecated to

the Bank. It will be registered in the name of the borrowerjointly with

            the Bank.

    Guarantee of spouse if employed or third party guarantee acceptable to Bank
of a person having net means atleast equal to 200% of the loan amount.

In case of farmers Regd./Equitable mortgage of land valuing atleast equal to

200% of the loan amount sanctioned or  third party guarantee acceptable to

 Bank of a person having net means atleast equal to 200%of the loan amount.

            

 

REPAYMENT OF LOAN

For New Car/Van/Jeep:

The loan amount together with interest is to be repaid maximum in 84 equated monthly instalments comprising of principal and interest.  

           
            For Old Car/Van/Jeep

The loan amount together with interest is to be repaid maximum in 60 equated monthly instalments.                                                                     

         

          For new/old car/van/jeep

In case of persons engaged in agriculture & allied activities, sanctioning authority may fix repayment schedule at half yearly/yearly coinciding with the time of harvest. However, the repayment period should not exceed 7 years (new  vehicles)  or 5 years (old vehicles).