Loan Schemes

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Commercial Vehicle Loan Loan Application Form


The finance under this scheme shall be available for purchase of fresh commercial vehicles OR new chassis and/ OR fabrication for commercial purpose. 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 under public carrier permit. The models/ makes of vehicles to be financed should be approved by The Transport Deptt. of J&K State Government for commercial purposes.


• Individuals/ Proprietorship/ partnership Firms & Limited Companies owning/ operating or proposing to own/ operate transport vehicles for carrying passengers or goods on hire.
• The borrower should have sufficient net worth to pay for the margin and initial recurring expenses.
• Ownership of a pre-owned vehicle is not mandatory.
• Maximum age of applicant at loan maturity: 66 years
• Minimum period of existence in case of firms & companies: 2 years in business
• Commercial Driving License (for self-operating by individuals)

Quantum of Loan:

Maximum 75% of the unit cost i.e. 75% of the chassis & 75% of the fabrication cost (approved/ fixed by the bank), wherever applicable OR invoice value, whichever is lower.


Atleast 25% of the unit cost i.e. 25% of the cost of chassis & 25% of the fabrication cost (wherever applicable) as per the invoice value, whichever is lower.


i) Primary: Hypothecation of 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.

Up to Rs.30.00 Lakh:
(i) 3rd party guarantee of two persons of sound financial net means & good for the loan amount.
Above Rs.30.00 Lakh:
(i) 3rd party guarantee of two persons of sound financial net means & good for the loan amount.
(ii) Mortgage of immovable property of value not less than 50% of the loan amount.

Repayment Period:

Maximum repayment period of 72 months including an initial moratorium of 2 months. The repayment of loan along with interest shall be in 70 Equal Monthly Installments. However, insurance and other cost shall be borne/ paid by the borrower separately.
Maximum age of the applicant at loan maturity shall be 66 years.

Processing Charges:

0.50% of the loan amount

* Conditions Apply