Term Loan

Minimum age at the time of loan application: 18 years

Maximum age at the time of loan maturity: 70 years

Notes:

• In case of in service Govt employees under old pension scheme, car loans with tenor exceeding residual services period can also be considered. However, the sanctioning authority may make a tentative assessment of his/her likely pension income, based on his her existing salary structure, residual service, pension rules etc. and ensure that the instalment of the proposed loan shall not be more than 50% of his/her likely monthly pension.
• In case of joint borrowers/ Co-borrowers, the age of that borrower can be considered for fixing tenor of the loan whose contribution towards the repayment of proposed loan is at least equal to 50% of EMI.
• The upper age limit may be relaxed upto 75 years in deserving cases, powers for which may be vested with the Zonal Credit Committees.

• For permanent employees of State and Central Government, Government Undertakings & Autonomous bodies Drawing salary through our Bank :20% of value derived/ accepted
• For Platinum/Gold Current Account Holders & Customers having aggregate limits (Working Capital and/or Term Loan) above 25 Lakh having satisfactory dealings.:20% of value derived/ accepted
• For All Other borrowers:25% of value derived/ accepted

• Maximum Limit per vehicle: Rs 25.00 lacs
• Maximum Limit per borrower: Rs 50.00 lacs
  
  Note: Higher quantum of finance per unit/ per borrower may also be considered, however powers to sanction such loans shall vest with Zonal Credit Committees only.

• The maximum tenor of the loan shall be 07 years or till the vehicle gets 12 years old, whichever is earlier, subject to residual life of the vehicle.
  The loan shall be repaid in a maximum of 84 Equated Monthly Installments.

• Primary: Hypothecation of vehicle to be purchased (Bank’s charge to be registered with concerned Transport Authority/ VAHAN Central Registry)
• Collateral:
  • For permanent employees of J&K/Ladakh Gov’t and Central Government, Government Undertakings & Autonomous bodies maintaining salary accounts with our bank: NIL.(However, in cases where the loan tenor is in excess to residual service period, TPG of one person shall be obtained).
  • For pensioners: Guarantee of 02 persons including spouse eligible for family pension.
    (Or) Guaranteeof spouse only if he/she is a Govt employee or pensioner.
  • Private /Public Limited Company/ partnership firms:Personal guarantee of promoters/directors/partners
  • For all others: Guarantee of one person having sufficient net worth to withstand the liability and acceptable to Bank.
  • Direct Debit Mandate/NACH/ECS Mandate (whichever applicable)
    Note:
    Sanctioning Authority may waive off third party guarantee in favour of certain categories of applicant borrowers, as noted below:
  1. Platinum/Gold Current Account Holders having average balance of Rs 5.00 lacs or above
  2. Customers availing aggregate limits (Working Capital and/or Term Loan) above 50 Lakh with satisfactory track record.
  3. Borrowers with credit score of 750 in case of CIBIL or 650 in case of CRIF.
  4. High net worth individuals maintaining term deposits in excess to Rs 50.00 lacs with the bank in their own name.

4% on the outstanding in respect of Fixed interest rate loan shifted to other banks + Applicable GST.

Nil for all other loans prepaid

For all types of individual borrowers: Gross Annual Income of Rs 2.00 lacs
For proprietorship/partnership firms and companies: Cash Profit (PAT+ Average Depreciation) of Rs 2.00 lacs for the previous financial year.

LPC: 1.0% of the loan amount plus applicable GST Minimum of ₹2000/- + GST
Maximum: ₹15000/- + GST
(Nil for employees mentioned at para Rate of interest)

Tenor upto 04 years: RLLR+3.75% (Fixed)

Tenor above 04 years:RLLR+4.75% (Fixed)

The interest rate concession applicable to employees of various Govt Departments/ institutions, as noted below, shall continue till validity of such MoUs unless otherwise notified:

• Employees of SMVDSB 25 bps
• Employees of Police Departments 10 bps
• Employees of University of Kashmir 10 bps
• Employees of NIT Srinagar 10 bps
• Employees of Central University of Jammu 10 bps
• All other employees of J&K/ Ladakh Gov’t. 25 bps

Interest rate concessions of 50 bps (including existing concession as per MOUs specified above or concession to women borrowers, if any) to individual borrowers having credit score of above 750 in case of CIBIL or above 650 in case of CRIF. Similar concession shall be extended to non-individual borrowers with internal rating grade of 1 or 2.

Interest rate concession of 25 bps (including existing concession as per MOUs specified above or concession to women borrowers, if any) to individual borrowers having credit score of 701-750 in case of CIBIL or 610-650 in case of CRIF. Similar concession shall be extended to non-individual borrowers with internal rating grade of 3 or 4.

1. Permanent Employees of State / Central Government, Semi-Government Undertakings, Institutions and Autonomous Bodies.
2. Regular Employees of Private Limited Companies / Private Organizations and other Reputed Private Institutions/ Establishments who have a service of at least 2 years with the current employer
3. Contractual Employees of Central/State Government, Semi-Government Undertakings and Autonomous Bodies (provided there are no instances of termination of employment of such employees previously).
4. Professionals or self-employed individuals with at least 2 years’ experience in business/profession/activity. (This category shall include proprietors, partners and promoters of companies where the loan is sanctioned in their personal capacity. Gross Income in this case shall mean income as shown in proof of income obtained)
5. Persons engaged in agricultural and allied activities.
6. Pensioners of State/Central/UT Gov’t, PSU’s (Public Sector Undertakings), autonomous bodies and Institutions. (Family pensioners shall not be eligible).
7. Employees appointed under SRO 202 (to be treated at par with Permanent Employees of State/Central Government) subject to the condition salary for at least 6 months has been credited in the savings account of the applicant.
8. Partnership firms and companies which have been in existence for a minimum of 02 years.
9. HUF can also avail car loan facility. HUF can apply for the loan through Karta and the documents, as prescribed, shall also be executed by the Karta on behalf of the HUF. However, it shall be ensured that a joint application is obtained from all the coparceners for the loan whereby they will also confirm that the loan facility is used for the benefit of the HUF.
10. Applicants who do not fall in any of the above categories may be also be financed subject to the condition that the applicant has a stable/perpetual source of income and provides proof to the satisfaction of the sanctioning authority.

Value of the vehicle shall be the lower of the following (subject to satisfaction of the BU Head and Advances In-charge):

• Ex-showroom price of the vehicle as per original sale invoice less depreciation, which shall be as follows:

• Insured Declared Value (IDV) of the vehicle as per latest insurance policy.
• Consideration Amount as per agreement to sell between seller and buyer or as per invoice from registered used car dealer.
• Note: In case original sale invoice is not available, sanctioning authority may consider minimum of value as depicted in documents mentioned at Serial II & III above.