Vehicle Loan

The Samastipur District Central Co-operative Bank Ltd. offers vehicle loans for the purchase of new or used cars, Multi Utility Vehicles (MUVs), and Semi Utility Vehicles (SUVs). Here's a brief overview of their vehicle loan scheme:

Purpose: Purchase of new/used cars, MUVs, and SUVs.

Loan Tenure: Maximum 60 months (5 years) with a fixed interest rate.

Loan to Value Ratio (LTV): Maximum 80% of the vehicle's on-road price (including taxes, insurance, accessories, and extended warranty, with accessories, etc., capped at 5% of the ex-showroom price or a specific amount determined by the bank).

Interest Rate: Prevailing fixed rate of interest calculated on a daily reducing balance with monthly rests, subject to interest rate reset every two years. As per one of the search results, the interest rate is mentioned as 10.5% per annum. Please confirm the current interest rate with the bank.

Processing Fee: 0.50% of the loan amount when the loan is sanctioned. This fee might be NIL if liquid security available is more than 50% of the loan amount.

Foreclosure Charges: No foreclosure charges are levied on vehicle loans.

Other Charges: Borrowers are responsible for expenses like valuer's fees, insurance premiums, stamp duty, registration charges, verification charges, SMS, and tele-calling charges.

Insurance: The purchased vehicle must be comprehensively insured for the market value or at least 10% above the outstanding loan amount, whichever is higher, with the bank's interest as the hypothecatee noted in the insurance certificate and policy.

Eligibility:

• Confirmed employees of State/Central Government, Public Sector Undertakings, corporations, private sector companies, and reputed establishments with at least 3 years of continuous service.
• Pensioners.
• Professionals, self-employed individuals, businessmen, and proprietary/partnership firms who are income tax assesses.
• Priority may be given to holders of D.D.S. accounts with sufficient value.
• Age: 21-60 years at the time of loan sanction. The loan must be fully repaid before the borrower reaches 65 years of age, with consideration for a continuous source of income for repayment beyond 60 years.

Margin Requirement: A minimum margin of 20% on the on-road price of the vehicle is required.

Mode of Disbursement: The loan amount is typically remitted/credited to the dealer's account, ensuring the dealer's details match those on the proforma invoice.

Required Documents (General):

• Duly filled application form with photographs of the borrower and co-borrowers (if any).
• Proof of Identity (Aadhar, PAN, Passport, Driving License, Voter ID, etc.).
• Proof of Residence (recent Telephone Bill, Electricity Bill, Property tax receipt, Passport, Voter ID, Aadhar, LIC Policy, etc.).
• Bank account statement for the last 6 months.
• Personal asset and liability statement in the bank's standard format.

Additional Documents (Salaried Employees):

• Latest salary slip.
• Copy of the employer's identity card.
• Form 16 or Income Tax Returns for the last 2 years.