Purchase of new commercial vehicles of approved models/makes or new chassis and/or fabrication for commercial purpose or for captive use under public carrier permit.

  • Individuals/Proprietorship/partnership firms & Limited companies owning/operating or proposing to own/operate transport vehicles for carrying passengers or goods on hire.
  • Should have sufficient net worth to pay the margin and initial recurring expenses. In case where a borrower does not meet this requirement, a co-borrower having sufficient net worth can be included. 
  • Commercial Driving License (for self-operating by individuals/Driver engaged for the purpose).
  • Permit granted by the authorities to ply the vehicle.
  • Minimum age of Applicant: 21 years.
  • Maximum age of Applicant at loan maturity: 65 years.
  • Minimum period of existence in case of firms & companies: 2 years.
  • Maximum 80% of the On-Road cost of the vehicle which includes cost of Chassis, Fabrication cost, one-time Registration charges and Road Tax, first year insurance premium and interest for first three months.
  • Maximum 85% of the cost of the vehicle which includes cost of Chassis, Fabrication cost and interest for first three months.

For Priority Sector: 20% irrespective of loan limit.

For Non-Priority Sector:
i. Upto  200 lacs: 25% 
ii. Above  200 lacs: 30%

Upto  10 lacs: Hypothecation of the Vehicle to be financed.

Above 10 lacs to  25 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of two persons with sound means to withstand the liability.

Above  25lacs to  50 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of two persons with sound means to withstand the liability. In addition sufficient collateral security with realizable value not less than 50% of the loan amount sanctioned.

Above  50 lacs: Hypothecation of the Vehicle to be financed and third party guarantee of one person with sound means to withstand the liability. In addition sufficient collateral security with realizable value not less than 100% of the loan amount sanctioned.

Maximum repayment period of 84 months with 2 months moratorium for vehicles that don’t require fabrication of body and 3 months that require fabrication of body.

Applicable MCLR + 2% Fixed.

Penal Interest @ 2% p.a. where the installment is overdue beyond 2 months.

Click here for rate of Interest

(Conditions Apply)