SME Car Loan

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SME Car Loan
  • Features
  • Eligibility
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To provide car loans as term loan in the name of SME units, having borrowing arrangements with the Bank for purchase of only new cars viz. passenger cars, jeeps, multi utility vehicles (MUVs) and sports utility vehicles (SUVs) etc. for use by its promoters / partners / directors / employees usage. The car can be of Petrol/Diesel/CNG/Hybrid/Electric Engine.

Financing for Demo Cars is not permitted under the product.

Features

  • Target Group: The loan can be extended in the name of SME Unit, which are banking with us. Loans in individual names shall not qualify under SME Car Loan.
  • Quantum of loan (Min/Max): Rs. 1.00 lakh to Rs.300 lakhs
  • Margin (%):
    • Loans up to Rs. 10 lakhs: 15% of the on road price of the car
    • Loan > Rs. 10 lakhs to Rs. 3 Cr:
    • Margin of 20% on the On-Road Price of the car.
    • Sanctioning authority will have discretion to reduce the margin by 5% on case to case basis considering value of connection.
  • Pricing: Competitive Rate of Interest linked to CIC score of the Proprietor/Partner/Promoter Director and Term of the loan.

  • Collateral Security : NIL

  • Repayment Period : Maximum Repayment Period of 5 or 7 years. Repayable through EMIs

  • Upfront Fee: 0.50% of the loan amount (subject to min. of Rs. 500 and max. of Rs. 10,000)


Eligibility

  • All MSME/Non-MSME units, having borrowing arrangement with us, are eligible under the product, subject to account not being in SMA-1 or worse category during the last 12 months.

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Last Updated On : Friday, 08-07-2022

Interest Rates

8.40%* p.a.

w.e.f. 01.09.2023

*T&C Apply.

 

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