| SN | PARAMETERS | PARTICULARS |
|---|---|---|
| 1. | Purpose/ Objective | ✓ To finance both new and old vehicles to be used for commercial purpose. ✓ To meet Working Capital finance. ✓ To issue BGs for Contracts/Orders.(Under the scheme financing for Auto (three wheeler) is not be considered |
| 2. | Eligibility | i. Existing Fleet Operators/ Individuals (Goods or Passenger) having good prospects/contracts in hand. ii. Borrower should have experience of minimum 3 years in the transport sector. iii. Fleet operator having existing fleet of minimum 5 vehicles (excluding 3 wheelers) (To be verified from RC / Vahan.nic.in) iv. Transport operators holding national/ state route permit and other necessary permits/ license/ approval along with other statutory approval, with satisfactory track records/Income Tax payers. v. Education Institutions/ Hospitals / Hotels/ any other business units etc. which need Trucks, Trailers, Tankers, Buses, Tippers and Taxies etc. for their captive use. |
| 3. | Type of facility | i. Term Loan: To purchase commercial vehicles ii. OD limit: For meeting of day to day expenses iii. Bank Guarantee |
| 4. | Loan Amount | i. For Term Loan: Min loan amount: Rs. 50 lac (Minimum 2 vehicles) Max. upto Rs. 25.00 CroreFor financing Used/ Second Hand Vehicles minimum purchase price of the vehicle should be ₹10.00 lac ii. OD Limit: Maximum Rs. 1,00,000/- per vehicle financed by our Bank subject to maximum Rs.100.00 lac per borrower. OD limit shall be allowed against the vehicles financed by our Bank only, having on-road purchase price of ₹ 10.00 lac and above. |
| 5. | Margin | a. For New Vehicles: i. For fully built vehicles- 10% of “On Road Price” as per the Performa invoice of the Dealer. “On road Price” shall include Vehicle Ex-Showroom Price, insurance, Registration for fully built up vehicles. ii. Other category- For cost of Chassis: Nil Cost of body building; 40% Insurance, road tax, permi: 100% (No financing from the bank) b. For Used/ Second hand Vehicles: 35% for used/ second hand Light Commercial Vehicle /MCV/HCV not older than 2 years.Margin for Non fund based facility i.e. BG/ LC will be as per IRMD L&A guidelines on margin. |
| 6. | Tenure of Loan | i. Upto 72 months for new vehicles. ii. In case of used/ second hand vehicle, maximum repayment period shall be 60 months from the 1st registration date of the vehicle i.e. (60 months’ minus age of the vehicle) Overdraft: One Year, subject to annual renewal |
| 7. | Collateral Security | 20% collateral Security in the shape of immovable property/ eligible liquid security from the borrower. OR Credit Guarantee Coverage under CGTMSE/CGSSI for the entire exposure.The facility may also be covered under hybrid model of CGTMSE. |
| 8. | Rate of Interest | Concessional rate linked with Internal Risk Rating. |
| 9. | Processing/Upfront fee | Nominal unified processing/upfront fee @ 0.75% of the sanction limit. |