Hire Purchase Loan

Purpose

  • For purchase of vehicles (construction of body thereon) including bus/ truck/ tipper/ tractors/ excavator/ heavy equipments/ etc. for commercial purpose

Eligibility

An individual, Firm,  Private Ltd. Companies, Public Ltd. (subject to Transport Management Directive)

For Individual:

  • Repayment is to be ensured within 65 years of age
  • Net income to be minimum 150% of the EMI obligation.

For Business firms/concerns:

  • For existing business firms/concerns (this business should be running since at least last 1 year and generating cash profits)
  • For new business less than 1 year’s operations, repayment can be considered on future cash flows based on realistic projections.
  • Debt Service Coverage Ratio to be minimum 1.50:1

Limit

  • Need Based

Margin

  • 50.00% for personal purpose

  • 20%- Electric Vehicle

  • 25% -For public vehicle (with minimum 40 seats), construction, tourism, education, health, and transportation

Interest rate

  • Competitive rate(subject to change)

Repayment

  • up to 5 years

Security

  • Registration of vehicle in the name of bank

  • Acceptable Collateral security

  • Personal guarantee of person(s) acceptable to the Bank shall be obtained.

Insurance

  • Comprehensive policy with third party insurance as per banks’ clause.