The loan is granted for financing acquisition of brand new or used automobiles with maximum age of 5 years from date of manufacture, solely for non-commercial purpose against pledge of the automobile to be acquired and/or additional acceptable type of collateral.
The maximum loan repayment period shall be 7 years for brand new and 5 years for used automobiles.
For purchase of brand new automobiles, the loan amount shall not exceed the proforma invoice value less the required 40% equity contribution by the applicant, whereas the loan amount for purchase of used automobiles shall be the lower of purchase price and appraisal value of the Bank’s Mechanical Engineer less 50% equity contribution by the applicant. For brand new automobiles, the invoice value to be considered shall exclude luxury items and accessories.
Related costs like title transfer fees, vehicle registration charges, insurance, etc. shall be born by the borrower.
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