The finance under this scheme shall be available for purchase of Used Commercial vehicles like Used Trucks, Tippers, Buses, Mini Buses, light commercial vehicles, pick ups, three wheelers (cargo), auto rickshaws, etc of any approved make or model. The vehicle should not be more than 6 years old as on the date of finance. The product shall also cover takeover of loan accounts from our bank or from any other banks/ financial institutions, provided such loan account is running satisfactorily without any default in payment of installments as per the fixed repayment schedule.

  • Individuals / Proprietorship/partnership firms & Limited companies owning & operating or proposing to own & operate by himself/itself 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 vehicle is not mandatory.
  • Minimum age of Applicant: 21 years
  • Maximum age of Applicant at loan maturity: 65 years.
  • Minimum experience in the business for individuals: 2 years.
  • Minimum period of existence in case of firms & companies: 2 years in business.
  • Borrower should reside within the service area of the branch.

25% of valuation amount.

Loan amount for each used vehicle shall be equal to the value of vehicle less margin amount, subject to a maximum limit of  7.50 lacs/ vehicle with an aggregate limit of  15 lacs per borrower.

  • Maximum repayment period of 60 months for vehicles having age less than 3 years.
  • Maximum repayment period of 48 months for vehicles having age of 3 years to 6 years.
  • The minimum repayment period shall be 6 months.
  • The repayment shall be in Equal Monthly Installments.
  • Primary:
    Hypothecation of vehicle to be purchased. Banks name as hypothecate to be got noted in the books of the RTO and on the Registration Certificate. 
  • Collateral:
    Upto 10 lacs   3rd party mortgage of 2 persons
    Above 10 lacs    Mortgage of immovable property equivalent to 100% of initial loan amoun

Prepayment shall be allowed without any prepayment charges.

0.5% of the loan amount subject to a minimum of  500.

The value of the vehicle will be ascertained on the basis of present market value of the new vehicle of same variety & configuration less the depreciation, which shall be as follows:

S.No Age of the vehicle % Of Depreciation for fixing value
1 Not exceeding 6 months. 5%
2 Exceeding 6 months but not exceeding 1 year 15%
3 Exceeding 1 year but not exceeding 2 years 20%
4 Exceeding 2 years but not exceeding 3 years 30%
5 Exceeding 3 years but not exceeding 4 years 40%
6 Exceeding 4 years but not exceeding 5 years 50%
7 Exceeding 5 years 60%

OR

The valuation as per the Registered Chartered Automobile Engineer, which ever is less.

(Conditions Apply)