Commercial Vehicle Loan

Purpose:

The finance under this scheme shall be available for purchase of Battery or Fuel Operated fresh commercial vehicles OR new chassis and/ OR fabrication for commercial purpose or for captive use. The commercial vehicles will include passenger buses, trucks, tippers, oil & gas tankers, taxis, mini buses, light commercial vehicles, tempo, auto rickshaws, load carriers and any other mode of transportation.

The models/ makes of vehicles to be financed should be approved by Transport Department of concerned Government for commercial purposes.


Eligibility:

  • Individuals/ Proprietorship/ partnership Firms & Limited Companies owing/Trusts operating or proposing to own/ operate transport vehicles for carrying passengers or goods on hire or for captive use.
  • The borrower entity should have sufficient net worth to pay for the margin and initial recurring expenses.
  • Ownership of a pre-owned vehicle is not mandatory.
  • Minimum period of existence in case of firms & companies: 1 years in business.
  • The borrower(s) should have been granted a permit by an appropriate authority to ply the vehicle (s) for passengers or goods traffic for hire.

Age of the Borrower:

  • Minimum age of Applicant: 18 years.
  • If applicant’s age is between 18 years & 21 years, then co-borrower (blood relative) meeting the age norm, acceptable as per Bank’s norms should be taken.
  • Maximum age of applicant at loan maturity : 70 years
  • Younger family members, acceptable as per Bank’s norms, can join as Co-Borrowers and his/her age can be considered for fixing the repayment period.

Quantum of Loan:

Maximum 85% of the Ex-Showroom cost of the vehicle which shall include the cost of the chassis and fabrication cost (approved/ fixed by the bank).

OR

Maximum 80% of the ON-ROAD cost of the vehicle which shall include the cost of the chassis, fabrication cost (approved/ fixed by the bank), one time registration charges and first year insurance premium charges.


Margin:

Atleast 15% (Ex-Showroom) OR 20% (ON-ROAD) of the on-road cost, as applicable.

On-road cost include the cost of the chassis, fabrication cost, one time registration charges and first year insurance premium charges


Security:

  • Primary: Hypothecation of the commercial vehicle to be purchased. Bank’s lien/ name as hypothecatee to be got noted in the books of the RTO concerned and also in the Registration Certificate.
  • Collateral:
    • For loans up to Rs. 30 Lacs: 3 rd party guarantee of two persons having individual net-worth of at-least 150% of the loan amount.
    • For loans above Rs 30 lacs and upto to Rs. 45 Lacs:
      • 3rd Party Guarantee of two persons having individual net-worth of atleast 150% of the loan amount. AND
      • Mortgage of Immovable Property depending upon CIBIL score and track record.
    • For loans above Rs. 45 Lacs:
      • 3rd Party Guarantee of two persons having individual net-worth of atleast 100% of the loan amount. AND
      • Mortgage of Immovable property having distress sale value of at least 100% of loan amount, and Personal Guarantee of the mortgagor in case of third party mortgages OR Collateral security by way of tangible securities such as Bank’s own deposits, NSCs/ KVPs, LIC policies (having surrender value) equivalent or more than 100% of the loan amount.

Repayment Period:

Maximum Tenor: 84 Months i.e 7 years.

Moratorium:
. Upto 02 month for vehicles that do not require fabrication of body.
. Upto 03 months for vehicles that require fabrication of body.


Processing Charges:

Loans Upto Rs. 20000/-     NIL
Loans above Rs 20000/- to Rs. 2.00 Lakh      0.50% + Applicable GST
Loans Above Rs. 2.00 Lakh to Rs. 100 Lakh      0.50% + Applicable GST
Loans Above Rs. 100.00 Lakh      1.00% + Applicable GST

* Conditions Apply