Public Car Loan

Purpose: To purchase a new passenger cars, jeep, Single or Multi Utility Vehicles (MUVs) and SUVs for personal use.


  • Individual between the ages of 21 to 65 years.
  • Permanent/ regular employees of State/Central Govt., Public Sector Undertakings (PSUs), Private Company or a reputed Establishment.
  • Professionals, Self Employed, businessmen, proprietary/partnership firm who is an income tax assesses (wherever applicable).
  • Having a Net Annual Income Rs. 250,000/- and above

Loan Amount: 36 times of Net Monthly Income (NMI) or 3 times of Net Annual Income (NAI) subject to a maximum limit of Rs. 10 lakhs, provided EMI is not more than 50% of Net Monthly Income (NMI).

Margin: Minimum 20% of the on road price (which includes vehicle registration charges, insurance, one-time road tax and accessories).

Security: Hypothecation of vehicle and other collateral security in the form of salary-check off facility, third party guarantee, lien on deposits, mortgage of property etc.

Moratorium: One month from the date of disbursement.

Repayment Period: Maximum repayment period is 84 months

Repayment Schedule: The loan is to be repaid in EMIs over the tenure of the loan.

Rate of Interest: Interest will be charges at the prevailing rate of interest on daily reducing balance at monthly rests.

Processing/Up-front fee: Processing fee or up-front fee will be levied at prevailing rate depending on the amount of loan sanctioned.

Pre-Closure Charges: No pre-payment or pre-closure charges will be levied

Insurance: The Vehicle purchased to be kept comprehensively insured for the market value or at least 10% above the loan amount outstanding, whichever is higher, and Bank’s interest at a hypothecate should be noted in the Certificate of Insurance and Insurance Policy. The borrower must ensure that the renewal of insurance is done on the due dates and ensure a copy reaches the Bank for its record. Cost of the insurance should be borne by the borrower.