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Today, car manufacturers, banks and financial companies offer auto loans for individuals and companies, aspiring or planning to own a car.
No longer are cars just a status symbol for the Indian families, it has become a household necessity. Car makers also find a market in two-wheeler users who are known to make the switch on account of medical complications that arise from riding their vehicles, among other things. Apart from first time car-buyers, there are also those who opt for a second or third car for their family. They are typically upwardly mobile users who graduate from utility vehicle to a luxury vehicle.
Lenders across the country offer finance depending on the car model and length of repayment period for new and used cars. These days the clients' negotiating skills goes a long way to define the final deal that is struck.
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Target Group
Salaried class, Professionals, Businessmen and Self-employed persons
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Purpose
For purchasing new/second hand four wheelers. Age of second-hand vehicle should not be more than 3 years and vehicle to be certified by Automobile Association of India/reputed Automobile Engineer/Valuer acceptable to the Bank as to the market value.
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Eligible Amount
- Maximum Amount
Four wheelers : Rs.7,50,000
( For high net worth individuals with good repayment capacity, higher loan amount with a maximum of Rs.15 lakhs for Four wheelers may be considered )
- Minimum gross monthly income/salary for availing loan for purchase of car should be Rs.20,000/-
- Salaried class
20 times the gross monthly income (income of spouse also can be included with personal guarantee of spouse)
- Professionals/Businessmen
Based on their income earned and capacity/ability to repay the loan.
Pensioners and Bank Employees are not eligible for the loan.
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Margin
| For Four Wheelers |
| New Vehicles |
Used Vehicles |
Minimum 10% |
Minimum 40% |
| (age of used Four wheeler not to exceed 3 years) |
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Interest rate(w.e.f. 15.05.2008 for fresh accounts)
| For Four Wheelers |
11.50% Fixed upto 36 months |
11.75% Fixed beyond 36 months |
| Interest rate(w.e.f. 15.05.2008 for fresh accounts) |
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Loan Value
New Four Wheelers
Cost of Vehicle (In case of need, one time Road Tax, Registration Fee, Insurance premium and accessories can be added to cost of vehicle for finance) minus Margin as above .
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Repayment
- Repayment in 60 equated monthly instalments (on Equated Monthly Instalment basis).
- For non-salaried class, post-dated cheques for twelve months to be given.
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Service charges
Rs.250 per lakh or part thereof (subject to revision shortly)
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Security
Up to Rs. 7.50 lakhs Hypothecation of Vehicle
Beyond Rs. 7.50 lakhs For the portion of loan beyond Rs, 7.50 lakhs, 100% collateral security in the form of EM of Properties / NSC / Fixed Deposits or Surrender Value of LIC Policies to be stipulated.
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Insurance
Insurance of vehicle with Bank clause at borrower's cost, to be renewed annually.
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Response Time
Sanction in 48 hours in all focus branches, if the application is complete in all respects.
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Today, car manufacturers, banks and financial companies offer auto loans for individuals and companies, aspiring or planning to own a car.
No longer are cars just a status symbol for the Indian families, it has become a household necessity. Car makers also find a market in two-wheeler users who are known to make the switch on account of medical complications that arise from riding their vehicles, among other things. Apart from first time car-buyers, there are also those who opt for a second or third car for their family. They are typically upwardly mobile users who graduate from utility vehicle to a luxury vehicle.
Lenders across the country offer finance depending on the car model and length of repayment period for new and used cars. These days the clients' negotiating skills goes a long way to define the final deal that is struck.
|
|
Target Group
Salaried class, Professionals, Businessmen and Self-employed persons
|
|
Purpose
For purchasing new/second hand four wheelers. Age of second-hand vehicle should not be more than 3 years and vehicle to be certified by Automobile Association of India/reputed Automobile Engineer/Valuer acceptable to the Bank as to the market value.
|
|
Eligible Amount
- Maximum Amount
Four wheelers : Rs.7,50,000
( For high net worth individuals with good repayment capacity, higher loan amount with a maximum of Rs.15 lakhs for Four wheelers may be considered )
- Minimum gross monthly income/salary for availing loan for purchase of car should be Rs.20,000/-
- Salaried class 20 times the gross monthly income (income of spouse also can be included with personal guarantee of spouse)
- Professionals/Businessmen Based on their income earned and capacity/ability to repay the loan.
Pensioners and Bank Employees are not eligible for the loan.
|
|
Margin
| For Four Wheelers |
| New Vehicles |
Used Vehicles |
Minimum 10% |
Minimum 40% |
| (age of used Four wheeler not to exceed 3 years) |
|
|
Interest rate(w.e.f. 15.05.2008 for fresh accounts)
| For Four Wheelers |
11.50% Fixed upto 36 months |
11.75% Fixed beyond 36 months |
| Interest rate(w.e.f. 15.05.2008 for fresh accounts) |
|
|
Loan Value
New Four Wheelers
Cost of Vehicle (In case of need, one time Road Tax, Registration Fee, Insurance premium and accessories can be added to cost of vehicle for finance) minus Margin as above .
Used Four Wheelers
Certified Market Value minus margin .
|
|
Repayment
- Repayment in 60 equated monthly instalments (on Equated Monthly Instalment basis).
- For non-salaried class, post-dated cheques for twelve months to be given.
|
|
Service charges
Rs.250 per lakh or part thereof (subject to revision shortly)
|
|
Security
Up to Rs. 7.50 lakhs Hypothecation of Vehicle
Beyond Rs. 7.50 lakhs For the portion of loan beyond Rs, 7.50 lakhs, 100% collateral security in the form of EM of Properties / NSC / Fixed Deposits or Surrender Value of LIC Policies to be stipulated.
|
|
Insurance
Insurance of vehicle with Bank clause at borrower's cost, to be renewed annually.
|
|
Response Time
Sanction in 48 hours in all focus branches, if the application is complete in all respects.
|
|
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