Indian Banknews
	26 March 2007
	Scheme Highlights Target Group Purpose Salaried class, Professionals, Businessmen and Self-employed persons For purchasing new/second hand two/four wheelers Age of second-hand vehicle should not be more than 3 years and vehicle to be certified by Automobile Association of India/reputed Automobile Engineer/valuer acceptable to the Bank as to the market value. Eligible Amount Margin

Maximum Amount:
Two wheelers : Rs50,000 Four wheelers : Rs5,00,000 Minimum gross monthly income/salary for availing loan for purchase of car should be Rs20,000

Salaried class:
20 times the gross monthly income (income of spouse also can be included with personal guarantee of spouse)

Professionals/Businessmen:
Based on their income earned and capacity/ability to repay the loan. Pensioners and Bank Employees are not eligible for the loan. New vehicle : 10 per cent Second hand vehicles : 40 per cent

Interest rate
Fixed rate at PTLR + 1.5 per cent For less than 5 years (12.25 per cent + 1.50 per cent) - Effective rate 13.75 per cent For 5 years (12.50 per cent + 1.50 per cent) - Effective rate 14 per cent Repayment Service charges Repayment in 60 monthly instalments (on Equated Monthly Instalment basis).
The EMI works out to Rs234.57 for a loan of Rs10,000. For non-salaried class, post-dated cheques for twelve months to be given.

Front end fee of Rs250 per lakh or part thereof with a minimum of Rs250 Security Insurance Hypothecation of vehicle purchased out of the loan amount Insurance of vehicle with Bank clause at borrower's cost, to be renewed annually Response Time Sanction in 48 hours in all focus branches, if the application is complete in all respects