• Purchase of new commercial vehicles or new chassis and/or fabrication for commercial purpose or for captive use. The commercial vehicles will include passenger buses, trucks, tippers, oil and gas tankers, taxis, mini buses, light commercial vehicles, tempo, auto rickshaws and other mode of transportation under public carrier permit.  The vehicles should be of approved models/makes.
  • Individuals/Proprietorship/partnership firms & Limited companies owning/operating or proposing to own/operate transport vehicles for carrying passengers or goods on hire.
  • Sufficient net worth to pay the margin and initial recurring expenses. In case where a borrower does not meet this requirement, a co-borrower having sufficient net worth can be included.
  • Commercial Driving License (for self-operating by individuals/Driver engaged for the purpose).
  • Permit granted by the authorities to ply the vehicle.
  • Minimum age of Applicant: 21 years
  • Maximum age of Applicant at loan maturity: 65 years
  • Minimum period of existence in case of firms & companies: 2 years in business.
  • Maximum 80% of the On-Road cost of the vehicle which includes cost of Chassis, Fabrication cost, one-time Registration charges and Road Tax, first year insurance premium and interest for first three months.
  • Maximum 85% of the cost of the vehicle which includes cost of Chassis, Fabrication cost and interest for first three months.
  • Credit card with maximum limit of 25000 for purchase of fuel for borrowers who haven’t availed such facility.
  • Top up loans for change of tyres and other maintenance works after the end of minimum 03 years to the maximum limit of 10% of the loan amount earlier sanctioned or 90% of cost of tyres & maintenance charges whichever is lower.
  • For Priority Sector: 20% irrespective of loan limit.
  • For Non-Priority Sector:

    i. Upto 200 lacs: 25%
    ii. Above 200 lacs: 30%

  • Upto 10 lacs: Hypothecation of the Vehicle to be financed.
  • Above10 lacs to 25 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of two persons with sound means to withstand the liability.
  • Above 25lacs to 50 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of two persons with sound means to withstand the liability. In addition sufficient collateral security with realizable value not less than 50% of the loan amount sanctioned.
  • Above 50 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of one person with sound means to withstand the liability. In addition sufficient collateral security with realizable value not less than 100% of the loan amount sanctioned.
  • As per latest service charges schedule of the Bank.
  • Maximum repayment period of 84 months with 2 months moratorium for vehicles that don’t require fabrication of body and 3 months that require fabrication of body.
  • No prepayment charges. However in case of takeover of facility by other Bank/Financial Institution, charges shall be levied as per latest service charges schedule of the Bank.

Click here for rate of Interest

  • Applicable MCLR + 2% Fixed.
  • Penal Interest @ 2% p.a. where the installment is overdue beyond 2 months. The penal interest will be charged on the overdue amount for the overdue period. No interest repayment will be allowed for pre-payment before three years for loan of original tenure of three to six years. 

(Conditions Apply)