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Mini Vehicle Loan

loan to buy a mini truck

Learn more about our Loan a Mini Truck Scheme under TMB Business Loan Products.

Our loan a mini truck scheme helps the urban community to avail of loans to buy a mini truck like Tata Ace. The criteria and conditions for sanction are relaxed to help extend the loan to the needy people at attractive rates of interest and low processing charges.

Purpose
To purchase new TATA Mini Truck.
Eligibility
Individual, Proprietary, Partnership Concern, Company ,Trust.
Form of Advance
Demand Loan / Term Loan.
Primary Security
Hypothecation of Vehicle to be purchased.
Collateral Security
Need not be insisted.
Loan Quantum
Upto Rs. 4.50 Lakhs.
Margin
If repayment is within 48 months - 10% of the Vehicle On Road Cost. If repayment is beyond 48 months and upto five years - 15% of Vehicle On Road Cost. For both the tenure, the margin will be calculated including the Body Building Cost.
Repayment
Up to a maximum period of 5 years.
Rate of Interest (A))
  • Loans released upto Jun 16, 2009
  • BR + 5.50% (16.25% p.a.).
  • Current Base Rate for Lending (BR) is 10.75% p.a.
Rate of Interest (B)
    Loans released on or after Jun 17, 2009
  • BR + 4.75% (15.50% p.a.).
  • Minimum Rate Clause: The ROI will not come down if BR is reduced below 8.50%. But in case the BR increases to more than 8.50%, then ROI will also increase to that extent.
  • Current Base Rate of Lending (BR) is 10.75% p.a.
Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
Processing Charges
1.00% of Limit sanctioned without any maximum cap.
Other Stipulation
  • The Average Debt Service Coverage ratio should not be less than 1.50:1.
  • Hypothecated Vehicle should be insured for full value with our Bank Clause
  • Our 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
Guarantee
Third Party Guarantee should be obtained if there is no collateral.
Documentation
Simple Documentation as per Bank Norms.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.