The finance under this scheme shall be available for purchase of fresh 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 any 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.
  • The borrower should have sufficient net worth to pay for 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.
  • Ownership of a pre-owned vehicle is not mandatory.
  • 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.
  • Commercial Driving License (for self-operating by individuals)
Commercial Vehicle Loans Loan Limit Upto (Amount in lacs) Margin
Under priority sector Micro (Service) Enterprises

 

8.50 15%
Upto and inclusive of 10.00 lacs 15%
Small (Service) Enterprises Above  10.00 20%
Under 
Non –priority sector
  200.00 25%
Above 200.00 30%
Note:-Margin will be calculated on the project cost of vehicle (chassis, body building & initial insurance) excluding registration charges.  The borrower will be required to deposit the entire margin upfront with the bank to be released subsequently along with the loan component directly in favour of the supplier/fabricator to ensure proper end use of funds

Maximum repayment period of 72 months including a initial moratorium of 2 months. The repayment shall be in Equal Monthly Installments

Maximum repayment period of 72 months including a initial moratorium of 2 months. The repayment shall be in Equal Monthly Installments.

  • Primary: Hypothecation of Commercial Vehicle to be purchased.
  • Collateral:
    a. Upto  10.00 lakhs: Collateral free

    3rd party guarantee of 2 persons of sound means.

    Or

    To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed by A&AP, CHQ.

    b. Above 10.00 lakhs to  25.00 lakhs

    3rd party guarantee of 2 persons of sound means.

    Or

    To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed.


    c. Above 25.00 lakhs

    Mortgage of immovable property of value equal to or at least 50% of the loan amount.

0.20% upto an amount of  50.00 lacs. Minimum  500/- 
0.50% above  50.00 lacs to  100.00 lacs.

1.00% above  100.00 lacs Maximum  10.00 lacs.

(Conditions Apply)