Vehical Security Loan

This self explanatory scheme helps individuals with a monthly income to avail of loans for purchase of two wheeler. The processing is quick, documentation is simple and rate of interest is low.

Purpose

To avail loan on second hand vehicle..

Eligibility

The employees who produce an undertaking letter from the Employer to deduct and remit the installment amount every month or an undertaking letter from the employer to credit the salary only in the account of the employee maintained at our branch.
The applicant should have permanent Driving License.
The employer of the applicant should be approved by the Regional Manager specially for this purpose.
Any individual with minimum net income of Rs. 75,000 p.a. (including the income of the spouse).

Repayment Period

The repayment period may be fixed up to the maximum of 36 months.EMI should not exceed 40% of take home salary

Rate of Interest

16.50% is for Two Wheelers
15.50% is for more than two wheelers.

Penal Interest

Any irregularity or default in repayment will attract penal interest of 3.00% p.a. over and above the above rate of interest on the balance outstanding.

Processing fees

1.30% of Limit sanctioned without any maximum cap.

Shareholding

Nominal membership

Quantum Of Finance

50% of Valuation of vehicle
Maximum loan up to Rs. 5 lakh

Interest Calcualtion Method

Reduced Balance method

Security

Hypothecation of Vehicle to be financed.

Documentation

Simple documents as per our Bank Norms.

Penalty for Pre-Closure

Other Stipulation

Hypothecated Vehicle should be adequately insured.
The Bank’s hypothecation charge should be noted in the RC Book.
Duplicate key and RC Book copy should be obtained and kept along with the loan documents.