Purpose:
Purchase of New two wheeler & four Wheeler for Personal use. (i.e. not for hiring/ferrying passengers)
Facility
Term Loan
Target Group
All individuals of age 18 years and above and up to the age of 65 yrs. Minimum Income Criteria (Gross Annual Income)
| Salaried/ Non-Salaried | 4 Wheeler | 2 Wheeler |
| Rs.3,00,000 | Rs.1,80,000 |
Maximum Loan Amount
- Two Wheeler – Rs.10.00 lakh.
- New Four Wheeler - Rs.200 Lakh(Indian/Foreign made Vehicle)
Margin
- Loan Amount up toRs.25 lakh - Minimum 10%
- Loan Amount more than Rs.25 lakh - Minimum 20%
- Loan may be sanctioned on “On Road Price” (cost of vehicle+ Registration Charges+ Road Tax+ Cost of Insurance). Additional cost for fancy numbers shall not be financed by bank.
Repayment Period in Months
| Type | Repayment Period |
| 2- Wheeler | 60 Month |
| 4-Wheeler (New) | 84 Month |
Eligibility
All individuals of age 18 years and above and up to 65 years for:
i. Permanent salaried employees of Central / State government / Local self-government / Defence staff / employees of PSU / Large Corporates / reputed establishments.
ii. Self-Employed Persons / Independent Entrepreneurs who have regular source of income
iii. Farmers irrespective of land holding engaged in production oriented agricultural activities and in other allied activities.
iv. Non-resident Indians in India jointly with a resident of India who is a close relative of the NRI. The vehicle is for use in India only.
v. All Staff members of our bank including probationers, whether singly or jointly with spouse or children.
vi. Blood relatives like Mother, Father, Spouse, Brother, Sisters, Son, Daughter can be accepted as co-borrower who has regular source of income i.e. income of the co-borrower may be clubbed to calculate eligible loan amount.
vii. Friends and distant relatives like Uncle, Aunts Nephew and Niece etc. are not eligible to join as co-borrower
viii. Maximum no. of applicants are restricted to two(2).
ix. Co-borrowers must be taken in case of borrowers above the age of 60 years.
x. Minimum Income Criteria (Gross Annual Income)
Quantum of Finance
For Salaried Persons: -
24 Times the gross monthly salary on the basis of last drawn salary.
ii. For Other Individuals: -
Two times the average annual income of last two years.
iii. However, the Maximum Loan amount is:
Two Wheeler – Rs.10.00 lakh.
New Four Wheeler - Rs.200 Lakh for Indian/ Foreign made Vehicle.
Security
Hypothecation of vehicle purchased. VAHAN Registry and CERSAI has been integrated and any hypothecation charges registered with VAHAN Registry automatically updated in CERSAI. Accordingly, Registration of hypothecation charges of vehicle is not to be registered separately with CERSAI if Bank's hypothecation clause is registered with VAHAN registry.
Guarantee
No Personal Guarantee to be obtained in following cases
i. Loans up to Rs.25.00 lakh.
ii. Central Govt / State Govt/PSU employees /staff of Bank / Ex Staff of Bank
iii. CIC score above 750
iv. However for Loan above Rs.25.00 lakh, no personal guarantee, is to be obtained if the borrower is our bank borrower with no default and for individuals in following cases;
- Salaried account with the Bank
- Employer undertaking for deduction of EMI and terminal benefit.
- Any collateral security offered, the market value of which is not less than loan amount.
- Liquid security is offered at least to the extent of 50% of loan amount.
- The borrower has contributed to the extent of at least twice the prescribed margin.
- The borrower has satisfactory banking relationship with us for at least five years. Delegatee in the rank of Chief Manager and above can take a decision in such case to waive the condition of personal guarantee.
(For others with loan amount above Rs.25.00 lacs, Personal Guarantee is required.)
EMI/NMI Ratio for Salaried and Non-salaried Borrower
Net Annual Income-wise graded ratio is as
| Net Annual Income | EMI/NMI not to exceed |
| Up to 5 | 55% |
| >5- 10 | 60% |
| >10 | 65% |
NMI (Net Monthly Income) = Gross Monthly Income (GMI) – all statutory deductions & taxes (Excluding all existing and proposed EMI).
EMI for the purpose of computing the EMI/NMI ratio will include all EMI towards existing loans and the proposed loan therefore existing EMIs should not be deducted from Gross Monthly Income (GMI) for the purpose of computation of NMI.
Note : permissible loan amount will be assessed on the basis of the lower value arrived at from undernoted eligible criteria :
Maximum permissible as per Income Criteria, Cost of vehicle (LTV) or EMI/NMI Ratio whichever is lower
CIC Score
Minimum CIC Score of the applicant is as under:
| Name of CIC | Minimum Threshold Limit |
| Transunion CIBIL | 700 |
| CRIF | 650 |
| EXPERIAN | 700 |
Rate of Interest: RBLR+CRP
ROI is based on CIC score:
- Four Wheeler: Ranging from 9.25% to 10.15%
- Two Wheeler: Ranging from 11.35% to 12.15%
PROCESSING FEES:
Four Wheeler:
0.50% of Loan Amount +GST; Subject to Minimum: Rs.2,000/-& Maximum: Rs.10,000/-
Two Wheeler:
0.50% of Loan Amount +GST; Subject to Minimum: Rs.500/-&Maximum: Rs.2,000/
DOCUMENTATION CHARGES:
NIL