Vehicle Loan

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Vehicle Loan

For purchase of New Four Wheeler / New Two Wheeler / New e-Car / e-New Two Wheeler.

Purpose

For purchase of (New Four Wheeler / New Two Wheeler).

For purchase of (New e-Car / e-New Two Wheeler)

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Age of applicant

Entry age limit is 21 years.

Exit age limit is:

60 years for salaried class.

65 years for other than salaried class.

Income Criteria Four-Wheeler

Type of Occupation	Minimum Gross Income	Eligible Amount
Salaried Person	Minimum gross monthly income of Rs.20,000/- and above	Maximum 48 times of gross monthly salary
Pensioners	Drawing monthly pension of Rs.15,000/- and above	Maximum 36 times of gross monthly pension
Professional & Self Employed / Businessmen	IT assessee having Gross Annual Income of Rs.3.00 lakhs above as per latest ITR. ITR should have been filed regularly on yearly basis. Net take-home criteria should be minimum 40%.	Maximum 3 times of average Net Annual Income for the last two years as per latest ITR
Firms & Companies	Firms / companies should be in profit during last two years.	DSCR as per extant Credit Policy guidelines in force to be maintained

Income Criteria Two-Wheeler

Type of Occupation	Minimum Gross Income	Eligible Amount
Salaried Person	Minimum gross monthly income of Rs.10,000/- and above	Maximum 48 times of gross monthly salary
Pensioners	Drawing monthly pension of Rs.10,000/- and above	Maximum 36 times of gross monthly pension
Professional & Self Employed / Businessmen	IT assessee having Gross Annual Income of Rs.1.80 lakhs above as per latest ITR. ITR should have been filed regularly on yearly basis. Net take-home criteria should be minimum 40%.	Maximum 3 times of average Net Annual Income for the last two years as per latest ITR

Take Home Pay

Income of Spouse, Parents and Children can be included provided they must be co-applicant for the loan. Proof of income to be supported by ITR.

Net Take Home Pay / Income

For individuals, including Professional and Self-employed, where the individual's monthly income is reckoned for arriving at the quantum of Vehicle Loans:

Gross Annual Income of the Applicants (Individually or jointly) is up to Rs.15.00 lakhs – NTHP after deducting proposed EMI should be ensured at 40% of Gross Monthly Income.

If Gross Annual Income of the Applicants (Individually or jointly) is above Rs.15.00 lakhs, NTHP after deducting proposed EMI should be minimum Rs.50,000/- per month.

For Firms & Companies:

Firms / companies should be in profit during last two years. DSCR as per extant Credit Policy guidelines in force to be maintained.

Eligible Amount

20 times of Gross Monthly Salary/ Income

Maximum Loan Amount

Maximum loan ceiling:

Two Wheelers: Rs.5.00 Lakhs

Four Wheelers: Rs.100.00 Lakhs

Margin

Type of Loan	Margin
Two Wheeler	15%
Four Wheeler – Below Rs.50.00 lakh	15%
Four Wheeler – Rs.50.00 lakh & above	20%
Hybrid vehicle / e-vehicle	20%

For Individuals, margin can be relaxed to 10% if:

CIBIL score is 750 & above / equivalent CIC score; or
Customer is an employee of Central Govt. / State Govt. / PSUs; or
Other salaried class customer with Gross Annual Income of Rs.15.00 lakh & above.

For Vehicle, margin must be calculated based on quotation "on Road Cost":

Ex-showroom price + TCS + Road Tax + Insurance

Rate of Interest

Two Wheeler: 12.50% p.a. Monthly compounding (variable)
Four Wheeler: 9.95% p.a. Monthly compounding (variable)

Repayment Period

Two Wheeler: Maximum up to 60 months.

Four Wheeler: Maximum up to 84 months.

Security

For loans up to Rs.15 lakhs:

a) Hypothecation of vehicle purchased out of the loan amount.

b) If considered necessary by the sanctioning authority, based on the risk perception of the individual proposal, tangible security / guarantee to be made available for the advance.

c) Guarantee of spouse or suitable third-party guarantee shall be obtained.

For loans above Rs.15 lakhs:

a) Hypothecation of vehicle purchased out of the loan amount.

b) For portion beyond Rs.15 lakhs, 100% collateral security in the form of immovable properties / NSC / Fixed Deposits / surrender value of LIC policies is/are to be obtained.

c) Suitable third-party guarantee may be insisted.

Guarantee

a) If income of Spouse, Parents and Children is included, their personal guarantee is mandatory.

b) For all Vehicle Loans of above Rs.15.00 lakhs, obtaining guarantee of spouse / third party, in case spouse is not available / unmarried, may be insisted.