Car Loan Scheme
Purpose:
For purchase of new vehicle i.e. car/ jeep/Multi Utility Vehicle (MUV) for personal use only.  Second hand vehicle of the above categories, which is not more than three years old, may also be purchased under this scheme.

Eligibility:
  Salaried person : Minimum monthly gross income of  10000/- (In case of full collateral security /salary tie up, minimum     monthly grass  income would be   5000/-).
  Agriculturist:  must be owner of minimum 5 acres of irrigated agriculture land.  Businessman/ self Employed : must be Income Tax Assessee. (In case of full collateral security , Income Tax Assessment     order/Income Tax Return may be waived) 
The prospective borrower should be permanent resident of the operational area of the Bank.

Quantum of loan:
  Up to a maximum of two times of  Net Annual Income/Net Annual Salary or  8.00 Lacs whichever is lower, looking  in to the  repaying capacity of prospective borrower.
  Income of the spouse can be taken into consideration for determining loan amount. In such cases, spouse shall stand as a guarantor.

Margin:
  For new vehicle: 15% of the cost of vehicle.
  In case of purchase of Pre-owned vehicle, the loan amount will be restricted to 60% of the valuation of the vehicle are proposed costs of the vehicle, whichever is lower.

Rate of Interest:
As decided by the bank from time to time.
  Note: Further 0.50% rebate may be given if repayment of total loan is made done within three years.

Repayment:
  For New vehicle:  The Loan amount together with interest is to be repaid maximum in 84 equated monthly installments comprising of principal & interest.
  For Pre-owned/Second hand vehicle : The Loan amount together with interest is to be repaid in 60 months or residual life of vehicle which is earlier.
  In case of agriculturist, sanctioning authority may fix repayment schedule at half yearly/yearly basis coinciding with the time of harvest of crop. But in any case, repayment period should not exceed beyond seven year/five years as stated above. 
  Monthly/half yearly/yearly installment as the case may be exceeds 60% of the gross monthly/yearly income.  


Security:
  The vehicle purchased with bank loan, to be hypothecated to the Bank.
 C:\Documents and Settings\Administrator\My Documents\LKGB\images\buk.JPG  Personal Guarantee of two persons of adequate means & worth.

 


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