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:
|15% on chasis and 25% on body.|
|Category||Loan upto Rs.10 lac||Loan above Rs.10 lac|
|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%)|
|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.|
|Period of Loan|
|1 to 5 years.|
|Loan Processing Fee|
|50% concession in processing fee if covered under Priority Sector.|
|Hypn. of the vehicle to be purchased.|
|CGTMSE coverage be obtained in the cases eligible under the scheme|
|In the cases not covered under CGTMSE third party guarantee / collateral to be obtained invariably.|
|@ 2% over and above the contracted rate shall be charged for any default in repayment on loan instalment as per fixed repayment schedule.|
|By way of higher quantum of instalment in the initial years be fixed if possible.|
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 .