Term Loan.

• Individuals / Proprietorship firms /partnership firms/ LLPs & Limited companies/Trusts and other non-individual entities, operating or proposing to own / operate transport vehicles for carrying passengers or goods on hire or for captive use.
• The borrower entity should have sufficient net worth to pay for the margin and initial recurring expenses.
• Minimum period of existence in case of non-individual entities: 2 years in business (can be waived-off by next higher authority on the merit of the case).
  
  Note: There shall be no need of letter Authority for purchase of a vehicle which has been approved for use as commercial passenger vehicle under rule 274-A and in respect of which, all J&K contract carriage permit is sought. However, in such cases, the concerned sanctioning authority shall obtain an undertaking from the applicant borrower(s) that he/she/they/it will obtain necessary route permit for commercial plying of the passenger commercial vehicle and provide a copy of same to the bank.
  Branches located outside J&K UT shall follow local Govt orders/ directions in this regard.

• The Quantum of Finance is as under:
  
  i) In case of commercial vehicles with cost upto Rs 10.00 Lacs:
  
  a) 100% of the Ex-Showroom Cost of the vehicle which shall include the cost of the chassis and fabrication cost.
  
  (OR)
  
  b) 90% On-Road Cost of the vehicle which shall include Ex Showroom cost, registration fee, 1st insurance premium, fabrication cost (if any).
  
  ii) In case of commercial vehicles with cost above Rs 10.00 Lacs:
  
  a) Maximum 90% of the Ex-Showroom cost of the vehicle which shall include the cost of the chassis and fabrication cost.
  
  (OR)
  
  b) Maximum 85% of the On-Road cost of the vehicle which shall include the cost of the chassis, Fabrication Cost, one-time Registration charges and Road Tax, first year insurance premium.
  Where the borrower opts to avail finance against the On-Road Cost of the vehicle, the payment of the One-Time Registration charges and the Road Tax shall be remitted by the Bank directly to the Registering Authority or the Authorized Dealer, as the case may be. Similarly, the insurance premium shall also be remitted by the Bank directly to the concerned insurance agency.

• Nil where Ex-Showroom Cost is financed
• 10% where On-road cost is financed
  

• 15% of on-road cost (OR)
• 10% of Ex-Showroom Cost
  
  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/ RTO/Insurance Company to ensure proper end use of funds.

• Primary:
  
  Hypothecation of the commercial vehicle to be purchased
  
  
• Collateral.
  I) For cases up to & Inclusive Rs.10.00 lacs:
  No collateral security
  
  II) For cases above Rs.10.00 lacs and up to & Inclusive Rs.75 lacs:
  To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed therein (CGTMSE guarantee fee to be borne by customer)
  (OR)
  3rd Party Guarantee of two persons having individual net-worth equivalent to 150% of the loan amount.
  (OR)
  Mortgage of immovable property (IM) having realizable sale value of
  at least 25% of loan amount along with personal guarantee of the mortgagor in case of third party mortgages.
  
  III) For cases above Rs.75.00 lacs and up to & Inclusive Rs.200.00 lacs:
  
  To be covered under guarantee cover of CGTMSE in accordance with the procedure prescribed therein (CGTMSE guarantee fee to be borne by customer)
  (OR)
  Mortgage of immovable property (IM) having realizable sale value of at least 35% of loan amount along with personal guarantee of the mortgagor in case of third party mortgages.
  
  IV) For cases above 200.00 Lacs:
  
  Mortgage of immovable property (IM) having realizable sale value of at least 40% of the loan amount along with personal guarantee of the mortgagor in case of third party mortgages.
  
  Note:
  Loans to the tune of Rs 100.00 lacs can be considered without insisting on mortgage of tangible collateral. However, this relaxation shall be extended only in deserving cases upon fulfilling below noted conditions:
   The margin contribution by the borrower is at least 25% of the cost of vehicle, i.e LTV is upto 75%.
   Such loans are collaterally secured by TPG of 02 persons with individual net worth of at least 200% of the loan amount

Maximum Tenor: 84 months i.e. 7 years.

Moratorium Period:
 Upto 2 month for vehicles that does not require fabrication of body.
 Upto 03 month for vehicles that requires fabrication of body.

Repayment Period: To be repaid in 81/82 Equated Monthly Installments (EMIs) depending upon the initial moratorium period. Interest during the moratorium period to be factored in EMIs.

0.50% of Loan amount+ Applicable GST
Minimum Rs 2500+GST
Maximum Rs 25000+GST.

Prepayment/ Foreclosure shall be allowed without any prepayment charges.

RLLR +1.25% (Floating)

Note:All the proposals (excluding cases of individual borrowers) shall be rated through the Risk Scorer Application, however, the pricing shall be delinked from the rating grade.

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