Commercial Vehicle Loan


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.


At least 20% of the unit cost i.e. 20% of the cost of chassis & 20% of the approved cost of fabrication (wherever applicable), 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 ₹30.00 lakh & up to ₹40.00 lakh:
Collateral security by way of tangible securities such as Bank’s own deposits, NSCs/ KVPs, LIC policies (having surrender value) equivalent OR more than 50% of the loan amount/total exposure.


Mortgage of immovable property valuing not less than 50% of the loan amount.
Above ₹40.00 lakh:
Mortgage of immovable property valuing not less than 50% of the loan amount.

Repayment Period:

Maximum repayment period of 84 months including an initial moratorium up to 3 months only.

Processing Charges:

0.50% of the loan amount

* Conditions Apply