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Purpose
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To
provide term loan to the promoter/partner of the SME units
[having borrowing arrangements with the Bank and or
maintaining current account satisfactorily for a period of
one year] or to their family members either in their own
names or in the unit’s name (i.e in the name of the Company,
Partnership firm / Proprietorship firm) for purchase of New
passenger cars, jeeps, multi utility vehicles (MUVs) and
sports utility vehicles (SUVs) etc. or Pre-owned Cars / Jeeps
/ MUVs / SUVs
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Eligibility
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Case
I –
When the loan is availed of in the name of an individual:
Income:
An individual must have a net annual income of Rs.75,000/- and
above for the last year as per income tax return.
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Case
II
– When the loan is availed of in the name of Unit:
Since
the promoter / partner will be the joint applicant in this
case and liable to repay the loan, he/she should meet the
following criterion:
Income:
The joint applicant must have a net annual income of
Rs.75,000/- and above for the last year as per income tax
return.
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Nature of facility
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Term Loan
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Quantum
of Loan
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3 times of Net Annual Income.
Maximum Loan amount: No ceiling for New
vehicles.
For used vehicles Rs.15.00 lacs only.
Income
of the spouse can be included, if he/she agrees to be a Co-borower
or Guarantor
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Margin
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15%
of the on road price of the
vehicle
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Security
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Ø
Only hypothecation of the vehicle(s) purchased will be
taken as a security.
Ø
This hypothecation charge must be mentioned in the
books of the RTO.
Ø
No additional security is required.
Ø
Guarantee of Spouse, if income of spouse has been taken
into account for computing eligibility of loan amount.
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Repayment
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New Vehicles:
Maximum of 84 months
Used vehicles :
Vehicles
upto 5 years old can be financed.
Maximum repayment period will be fixed as per age of the
vehicle such that the entire loan is repaid within the first
seven years of the life of the vehicle.
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Valuation
of used vehicles
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Certificate of fitness / valuation from a reputed garage
would be required which should be retained with the loan
documents. No
valuation certificate is required if the car is sold under the
Maruti True Value scheme or Automartindia.
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