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Vehicle loans (PASSENGER/GOODS AUTO)

The Bank is providing financial assistance to Rural and urban unemployed youth for self employment.

Eligibility:

1. Applicant should be a permanent resident of the Karimnagar Dist. More particularly within the Jurisdiction of the Bank Branch. He should produce Ration Card/Telephone   Bill/Electricity bill as Residential proof
2. He should have a “B” Class membership in the Bank.
3. The applicant should open a SB/Current A/c with the Bank.
4. The applicant should produce xerox copy of the PAN card/Driving license or Identity card issued by the State Govt. / Govt. of India.
5. He should have valid driving license to drive four wheeler.
6. He should be in the age group above 18 years below 55 years Margin Money/ Down Payment: The applicant has to deposit 25% of the total cost of the vehicle to consider for sanction of loan as margin money.

Security:-

1. Applicant should provide 100% value of agriculture landed property/Urban property. The values have to be taken from the Sub-Registrar of Assurances. In case of Urban property the valuation should be obtained from bank approved valuator. In case of non-availability of immovable property, he should provide
2. sureties of State/Central Govt. employees whose basic pay is not less than Rs.15,000/- per month. Left over service of the employees not less than the repayment period. The immovable property of the blood relatives, close friends voluntarily offered as security can be accepted.
3. The security/property offered as security should be mortgaged by way of simple mortgage in favor of the financing Bank at the cost of the borrower.
4. Vehicle should be hypothecated to the Bank till repayment of entire loan amount to the Bank.
5. The vehicle should be fully insured at the borrowers cost till the loan is cleared.
6. The insurance should cover the bank hypothecation and assign to the bank.
7. The applicant should submit “No Due Certificate” from the service area Bank.

Rate of Interest:- 13% monthly rests. 2% penal interest will be charged in case of default. The rate of interest is subject to change from time to time.

Period of repayment:- Loan amount shall be recovered in 60 to 72 monthly equated installments depending on the applicant’s repayment capacity.
Mode of Loan Disbursement: Loan amount including margin money will be paid to
the authorized dealer against the delivery of the vehicle through Demand Draft/ Account payee cheque.

Documents to be submitted before sanction of the Loan.

1. Ration Card/Electricity Bill/Telephone Bill for proof of address
2. Driving License/PAN Card/Voter ID Card.
3. Application form provided by Bank.
4. Quotation/Estimation for the proposed vehicle from the authorized dealer.
5. Bank account statement for the last Six months.
6. No Due Certificate from service area Bank.
7. Membership registration card issued by the bank.
8. In case of immovable property, Title Deed book, Pass Book, Registered Documents, 15 years old pahani including current year pahani issued by the concerned Thasildar.
9. Salary certificates of the sureties i.e., State/Central Govt. employee, address proof, ID card and Undertaking from the Pay Disbursing Authority of the sureties.
10. Post dated cheques for repayment of monthly installments.
    

Documents to be submitted after sanction of the Loan:

1. Demand Promissory Note.
2. Mortgage deed.
3. Deed of Guarantee.
4. Acceptance letter of Terms & Conditions.
5. Vehicle delivery Chalan.
6. Insurance policy.