Commercial Vehicle Loan financing TIE-UP with Tata Motors Ltd.(TML)
     
In order to boost our lending under Commercial Vehicle segment Bank has entered into an MOU with Tata Motors Ltd India’s largest Commercial Vehicle Co with for financing of commercial vehicles . In this context, under this arrangement, Bank has introduced a competitive and innovative credit delivery system in association with TML, effective implementation of which will be a source of successful business growth for the Bank.
 
The salient features of the approved scheme are as under:
     
1. Eligibility  
a) Individuals, proprietorship/partnership firm./ Limited company, trust, society, owning and operating  or proposing to own and operate transport vehicles for carrying passengers or goods on hire.
b)

The borrower should have sufficient net worth to pay for the margin and initial recurring expenses like registration, Insurance, etc.  In case where the borrower does not meet this requirement, a co-borrower having sufficient net worth to be included.
2. Margin:
15% on chasis and 25% on body.
3. DSCR: Minimum 1.75
4. ROI  
 
Category Loan upto Rs.10 lac Loan above Rs.10 lac
1.1 Cases covered under CGTMSE or 100%  collateral

BPLR-2% i.e.=11.50%
( Floor rate  11.0%)

BPLR-1% i.e.=12.50%
( Floor rate  11.0%)
1.2 In case borrower is not covered under CGTMSE or collateral is less than 100% or against third party guarantee or hypothecation of existing unencumbered vehicle(s) with realizable value covering at least 50% of loan amount or any other movable asset taken as additional security.

BPLR-1% i.e.=12.50%
( Floor rate 12.0%)

BPLR-1% i.e.=12.50%
( Floor rate  12.0%)
     
  Incentive of 0.50% in interest  is available at the time of final payment provided borrower makes timely repayment of instalments.
5.

Period of Loan : 

 1 to 5 years.
6. Loan Processing Fee: 50% concession in processing fee if covered under Priority Sector.
 

Reg: Commercial Vehicle Loan financing TIE-UP  with Tata Motors Ltd.(TML)
7. Security: Hypn. of the vehicle to be purchased.
8.

CGTMSE Coverage :

 CGTMSE coverage be obtained in the cases eligible under the scheme
9. Guarantee: In the cases not covered under CGTMSE third party guarantee / collateral to be obtained invariably.
10. Penal Interest: @ 2% over and above the contracted rate  shall be charged for any default in repayment  on loan instalment as per fixed repayment schedule.
11. Flexible repayment: By way of higher quantum of instalment in the initial years be fixed if possible.
12.

Other parameters:

  
 
(a) Direct payment to be made to the dealer of new vehicle. Original bill of the vehicle financed should be obtained and kept alongwith security documents.
(b)

Vehicle should be got registered in the name of the borrower and bank’s name should be got incorporated as financier in the Registration Certificate and copy thereof duly verified be held on record.
(c) Comprehensive Insurance including riots, civil commotions and other natural calamities, of vehicle hypothecated to the bank for full value, with bank clause, should be obtained
   
 

The interest rates under the scheme are competitive for financing commercial vehicles of TML.  The opportunity can be encashed for augmenting credit under this portfolio.
     
  Due publicity be given to the scheme by displaying  banners at conspicuous places and sending letters to prospective clients.
     

Note : Northern States : Chandigarh ( UT) , Delhi , Punjab ,Haryana , Himachal Pradesh, J& K , Rajasthan .