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1.Two Wheeler Loan
Salient Features of the Two-wheeler Loan:
Purpose: For purchase of brand new two-wheeler (scooter / motor bike) for personal / family use.
Term of Loan: Min. 1 year, max. 3 years.
Eligibility: Businessman, professionals, self-employed, salaried persons and also HUF.
Age : Min. 21 years, regular source of income
Security: Hypothecation of vehicle being purchased. 3rd party guarantee by a person acceptable to the bank.
Maximum Finance: Depends on purchase price of the vehicle / net income of the borrower. Max. 85% of the ex-showroom price.
Requirements:
i. Declaration of Income, Assets & Liabilities.
ii. KYC documentation if the borrower is not an account holder of VSV Cooerative Bank Ltd. already. (Photo ID, Address proof, pp size recent colored photographs, PAN Card.)
iii. Quotation obtained from the car dealer.
iv. Valid Driving License
2. Four Wheeler Loan(Car Loan)
Salient Features of Car Loan:
Purpose: For purchase of brand new car for personal / family use.
Term of Loan: Min. 1 year, max. 7 years.
Eligibility: Businessman, professionals, self-employed, salaried persons and also HUF.
Age: Min. 21 years. Max. Age depends upon regular assured income till closure of loan account.
Driving license desirable but not compulsory (since owner of the car may not necessarily be the driver of the car).
Security: Hypothecation of car being purchased. 3rd party guarantee by a person acceptable to the bank.
Maximum Finance: Depends on purchase price of the vehicle / net income of the borrower. Max. 80% of the ex-showroom price. In case of old vehicle, valuation will be done by the bank’s approved valuer.
Requirements:
a. Income proof.
b. Assets & Liabilities statement.
c. KYC documentation if the borrower is not an account holder of VSV Cooerative Bank Ltd. already. (Photo ID, Address proof, pp size recent coloured photographs, PAN Card.)
d. Quotation obtained from the car dealer.
3. Loans for Commercial Vehicles :
Road Transport system – esp. the public road transport system is the backbone of economy. The road transport operators plying commercial vehicles need financial assistance and VSV Cooerative Bank Ltd. understands their requirement for timely and adequate financing. New or old commercial vehicles are being financed by us.
Salient features of the scheme are as under:
i) ELIGIBILITY:
(a) Persons engaged in transport business or starting transport operators business;
(b) Age in between 18 years to 60 years;
(c) Having driving license of TAXI/ BUS/TRUCK/AUTO RIKSHAW and plying permit from RTO office; and
(d) To the business concerns/partnership firms/companies engaged in tour/transport business with total investment in vehicles not exceeding Rs.200 lakhs.
ii) MAXIMUM AMOUNT OF LOAN:
Up to 5 vehicles or Rs.200 lakh whichever is lower. Entire loan will be classified under priority sector.
iii) MARGIN:
25% of the total cost of the vehicle including invoice value, road tax, insurance charges and cost of body building. In case of old vehicle, margin will be 50% of the value of the vehicle arrived at by the approved valour. Vehicle should not be more than three years old and should be in good condition. It should be registered with the RTO in the state where the financing branch is located.
Further, margin money will have to be arranged by the borrower upfront. If it is arranged by way of loans from friends’ / relatives etc. he will have to submit an undertaking from such persons that they will not demand repayment of their loans during the currency of the bank’s loan.
iv) NATURE AND PERIOD OF THE FINANCE:
The finance will be given in the form of a term loan repayable within maximum period of 84 months (normally within 36 to 48 months depending upon the net cash accruals).
Other Requirements
Insurance: Yes, insurance of financed vehicle.
SECURITY:
a) Hypothecation of the vehicle financed with bank’s lien noted in the RC book;
b) One set of keys;
c) Comprehensive insurance of the vehicle with bank’s hypothecation clause;
d) Collateral security in the form of term deposits, LIC policy, fixed assets / other marketable securities acceptable to the bank as per bank’s discretion.
Loan against Deposit:
Demand Loans:
A demand loan is sanctioned for a period of 1 year and usually, it is demanded against bank’s FDRs / Recurring Deposit / LIC policy or Post Office Deposits e.g. NSCs / KVPs. It takes only minutes to sanction the loan.
ELIGIBILITY:
Individuals, professionals/self employed persons and businessmen having deposit accounts with the bank. Loan will be available against the bank’s own FDRs, NSCs and LIC policies.
PURPOSE:
For personal or business needs.
AMOUNT:
the discretion of the bank. At present no upper limit.
MARGIN:
| Sr. No | Details | Margin % |
| 1 | In case of FDRs/own deposit | 10% of current value |
| 2 | In case of NSCs of less than 2 years old | 20% of current value |
| 3 | In case of NSCs of more than 2 years old | 15% of current value |
| 4 | In case of NSCs of more than 4 years old | 10% of current value |
| 5 | In case of LIC policy | 20% of surrender value |
PERIOD:
Maximum period 36 months or maturity of the security whichever is earlier.
REPAYMENT:
Either in one lump sum or in installments as agreed upon between the bank and the borrower. However, in case of overdraft limit sanctioned against term deposit, outstanding in the account should remain within the limit sanctioned and interest should be served regularly.
SECURITY:
Pledge of the FDR, NSC or LIC policy required. In case of third party, the loan application will have to be signed by him also. However, no credit facility will be allowed against the FDR of other banks.
