| Purpose / Objective | Term loan for purchase of Commercial Vehicles of ALL make under a Tie-up (MoU) arrangement. |
| Eligibility | Established Business entities under SME-Service sector / Retail Customers( under Priority Sector) who are engaged in Commercial Transport Services“ which includes Individuals /Proprietorship / Partnership firms, Limited companies, Trusts, Societies etc”. |
| Amount of Loan | Maximum of - 85% on Road price of the Commercial Vehicle to be purchased subject to not exceeding Rs.1 crore per borrower.
(Chassis + Body Building costs+ Registration plus Insurance, Road Tax, Accessories, AMC etc) |
| Margin | 15% on Road Price |
| Repayment | Maximum in 60 months including moratorium if any depending upon cash generation |
| Security | Primary-Hypothecation of ALL Make- Commercial Vehicle to be purchased
Collateral-
Upto Rs.10 lakh
– No collateral and account to be covered under CGTMSE.
Above Rs.10 lakh-
Additional security cover of not less than 100% of the limit sanctioned. Collateral by way of Immovable property belonging to
the borrower /guarantors along with guarantee of mortgagor as per Bank’s norm.
Immovable property to be considered Commercial, Residential/
urban property
(or)
The account to be covered under the CGTMSE scheme compulsorily. |
