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Vehicle Finance (Corporates)

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Vehicle Finance (Corporates)

Learn more about our Vehicle Finance Option for Corporate Company Use. This scheme is for financing Lorry / Bus and other light commercial vehicles and Heavy Vehicles like Crane, Forklifts, Mounted vehicles, etc. which are meant for commercial purposes by business corporates.

Purpose
A. To Purchase:
Lorry / Bus and other light commercial vehicles, etc to be operated on commercial basis and to transport their staff members. Heavy Vehicles registered with RTO such as Crane, Bulldozer, Earth Movers, Forklifts, Mounted vehicles, etc.
In case of finance for second hand vehicles Engineer's Valuation Certificate confirming the price and residual life of the vehicle has to be obtained. The residual life of the vehicle should not be less than 1.5 times of the repayment Period of the Loan.
Eligibility
Large, Medium, Small and Emerging Corporates which earned PBDT in the immediate preceding two years.
Form of Advance & Repayment
Term Loan - Upto 10 vehicles.: - Repayable within a maximum Period of 7 Years from the date of first disbursement. The instalment Holiday may be fixed depending upon delay in delivery of vehicle but not more than 3 months.
Second Hand Vehicles:: - Repayable within a maximum door to door Period of 5 Years including a moratorium Period not exceeding 3 months.
The second hand vehicles should not be more than 3 Years old and should have a residual life of 1.5 times of the total tenure of the Loan as certified by the Bank's approved Chartered Valuer/Panel Valuer.
Quantum of Loan
Maximum of Rs. 500 Lakhs.
Margin
Margin:
1. a. 15% of the on road price of the vehicle for new vehicles, b. 25% for second hand vehicles.
Note: On road price of vehicle includes cost of chassis, all accessories including air suspension, audio/video systems, air-condition system, seats, etc, body building cost, Registration Charges, insurance, road Tax and AMC.
Rate of Interest (Floating)
1. Loans for purchase of new vehicles:
  • Irrespective of Amount - BR + 0.90% (10.65% p.a.).
2. Loan for purchase of Second Hand Vehicles.
  • Irrespective of Amount - BR + 2.25% (12.00% p.a.).
  • Note: If Collateral Security cover is above 30% Interest Concession of 0.50% may be provided.
  • Current Base Rate for Lending (BR) is 9.75% p.a.
Security
For Term Loan: - Primary - Hypothecation of vehicle to be financed
Collateral: Only for Loans against Second Hand Vehicles
Loans against second hand vehicles should be covered by mortgage of immovable properties to cover at least 30% of Loan amount
Guarantee: Obtention of personal guarantee from directors/partners is mandatory.
Note: In case, the loan for upto 10 vehicles and the quantum of the loan is restricted upto 1 Crore (i.e. satisfying the norms of MSE (SRTO)), the Branch / Office should cover the exposure under Credit Guarantee Scheme of CGTMSE. No third party personal guarantee should be obtained for this case.
For the purpose of Collateral Securities the surplus value available if any under existing Security of immovable property held by the Bank arrived at after providing for 150% cover to the existing borrowings, are also permitted to be reckoned.
Insurance
The vehicle(s) secured for the bank's loan(s) should be insured for full value in case of new vehicles or for the value as assessed by the valuer in case of second hand vehicles with bank clause in the bank's favour.
Penal Interest
Any irregularity / default in repayment will attract penal interest at 2% per annum over and above the applicable rate of interest.
Processing Charges
1.00% of the loan amount plus taxes as applicable.
Prepayment charges
At the rate of 2.00% of term loan amount prepaid plus taxes as applicable. Loans closed by way of take-over by other Banks alone will attract prepayment Charges. No pre-payment charges will be levied in case the loan(s) is/are closed by the borrower from own sources of funds.

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