| Purpose |
For purchase of new conveyance/transport
vehicles |
| Eligibility |
Corporate houses should have earned
PBDT (Profit before Depreciation and Tax) in the two years
immediately preceding |
| Period |
Not exceeding 7 years |
| Amount of finance |
Need based finance
Maximum number of vehicles for conveyance : 5 Transport:
5 |
| Margin |
25% |
Application/ Appraisal/
Assessment
|
You need to use our standard application/appraisal
forms to. The Average Debt Service Coverage Ratio should
not be less than 2. |
Credit risk Assessment
|
Borrowers with a risk rating of SBH/SBHTL
1 to 5 will be considered for finance |
| Security |
Primary: Hypothecation of vehicle |
| Interest |
As per CRA rating of the company as
applicable to Term loans with the discretion of the sanctioning
authority
to quote the minimum |
| Guarantee |
Personal guarantee of Director(s) whose
net worth is equal to or more than the loan availed under
the scheme |
| Insurance |
All vehicles financed should be covered
comprehensively for full value. Insurance is to be done
in the name of company and assigned to the bank |
| Other issues |
- The company should give a letter of
authority to deduct monthly Instalments/interest towards
loan from their cash credit/current account.
- Vehicles should be kept in good condition
- All taxes should have been paid up-to-date
- You should have obtained permission from RTA and other
agencies for transport vehicles
- A duplicate key of the vehicle will be held by the bank
- A resolution to avail the loan should be submitted duly
approved by the board
- All other terms and conditions applicable to transport
operators/advances in general have to be followed |
