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SNo
Parameter
Modified / Revised guidelines
1
Purpose
For purchase of new two/three/four wheelers/trucks/jeeps/pickup vans, Refrigerated Van, Delivery vehicles, Mini trucks, Vehicle with trolley etc. by the agriculturist.
The vehicle should be registered in the main applicant’s name and should be used for personal/business purpose and NOT FOR commercial purpose.
2
Eligibility
The applicant should be an agriculturist having sizeable land.
Agriculturist having scattered land holding/land in two or more villages in more than one piece/farm situated far away from residence.
Eligible Co-applicants can be: Spouse, Father, Mother, Son, Un-married daughter.
Minimum age of borrower/s should be 18 years.
Maximum permissible age at the end of repayment is 75 years.
3
Loan Limit
Type of Vehicle
Maximum Limit in lakhs
Two Wheeler
3.00
Three Wheeler
7.50
Four Wheeler – OLD
10.00
Four Wheeler-NEW
25.00
5
Margin
15-40%
On Road price which includes Registration charges, accessories, Insurance & Road Tax are reckoned for arriving at the margin.
6
Rate of Interest
Two Wheeler vehicle:
Limit
Applicable ROI *
Up to Rs 1.00 lakh
MCLR + 1.50% (Simple)=8.75%
Above Rs 1.00 lac to Rs 3.00 Lac
MCLR + 2.00% (Simple) = 9.25%
Three/ Four Wheeler Vehicle - NEW:
Up to Rs 5.00 lakhs
MCLR + 0.50%= 7.75% simple
Above Rs 5.00 Lacs to Rs 25.00 Lacs
MCLR + 0.75%= 8.00% simple
Four Wheeler – OLD:
MCLR+3.00% - IRRESPECTIVE OF LIMIT
7
Income Criteria
Preferably Income Tax Return filed by borrower for last financial year should be obtained as income proof.
OR
In case Income Tax Return is not available, Income Certificate issued by Tahasildar/ Block Level Revenue Authority should be obtained.
In case where both ITR & Income Certificate from Tahasildar are not available, branch may ascertain the income on the basis of land holding, cropping pattern & income from allied activities, Spouse/Children Income etc. and satisfy itself regarding his income & the capacity of the borrower to repay the loan instalment (Principal +interest). The calculation of the same must be held on record.
75% of net income should be considered for assessment of the repayment capacity.
8
Service Charges
Processing Charges
Flat charges:
Rs 500 to Rs 1000 +GST applicable
9
Security
FOR NEW VEHICLES:
For Loans up to Rs 1.60 Lac
Hypothecation of vehicle and accessories.
For Loans above Rs 1.60 Lac
Hypothecation of vehicle & accessories.
Guarantee of spouse must be obtained. In its absence, guarantee of close relative (Father/Mother/Son as the case may be) to be obtained.
Apart from this, Third party guarantee with sufficient means, in any case NOT less than 100% of loan limit, acceptable class="inner-page-table" by bank to be obtained.
FOR OLD 4 –WHEELER:
Guarantee of spouse/Close relatives/Third Party/Owner of Mortgagor to be obtained.
Collateral Security acceptable class="inner-page-table" by the Bank including mortgage of land, value of which is 50% of the Loan amount.
10
Repayment Period
Max repayment tenure in months
36
60
84
13
Classification
Priority Sector: Agriculture: FARM CREDIT.