To purchase New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV)
Old car/van/jeep/MUV/SUV, which are not older than three years.
2.1(a) All Government employees and employees of Boards / Corporations / Cooperative Institutions/Banks/PACS. Registered and Recognized Educational Institutes, Multi-National Companies, Public and Private Companies etc;
(b) Businessmen/Professionals whose taxable income is more than Rs. 4.00 lakh p.a. including depreciation as per latest ITR.
2.2 For private use: Individuals.
2.3 Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children. However, out of these only one joint borrower shall be permitted. Further, in case of joint borrowers an option be got exercised to specify the name of the applicant borrower in whose name they want to get the vehicle registered.
(i) At the time of processing of loan the borrower’s place of posting should be at in the Branch Area of Operation.
(ii) The prospective borrower’s post should not be transferable outside Haryana and Chandigarh;
(iii) Those branches whose NPA of previous financial year exceeds to 5% in this segment subsequent sanction of loans by the branch will automatically stand withdrawn only till the NPA percentage improves to below 5%.
(iv) Employees who are placed under suspension are not eligible under the scheme during the period their suspension.
(v) The minimum length of service must be completed of 3 years.
2.4 MINIMUM INCOME CRITERIA FOR INDIVIDUALS
Minimum gross monthly salary / pension/ income – Rs.20000/-
Subject to change from time to time.
3. EXTENT OF LOAN
3.1 Maximum Rs. 20.00 Lakhs or 20 times of gross monthly salary/ income whichever is lower.
3.2 Nature of Loan – Term Loan
4.1 For New Vehicle: 10% of Ex-show room price
4.2 For Old Vehicles: 10% of the value of the vehicle.
4.2.1 (Valuation of old vehicles to be done at current invoice price of the new vehicle less depreciation @ 15% p.a. on straight line method subject to certification of authorized service centre.
5. REPAYMENT PERIOD:
5.1 For New Car/Van/Jeep/MUV/SUV: The loan amount together with interest is to be repaid maximum in 84 equated monthly installments comprising of principal and interest commencing from the succeeding month.
5.2 For Old Car/Van/Jeep/ MUV/SUV: The loan amount together with interest is to be repaid maximum in 60 equated monthly installments.
5.3 Repayment to be ensured upto 65 years of age subject to regular income of the borrower.
5.4 In case the loan is allowed to joint borrowers, it be ensured that atleast one of the joint borrower(s) is able to repay the loan along with interest upto the maximum prescribed age, i.e., upto 65 years.
6. PERMISSIBLE DEDUCTION:
6.1 The carry home pay (including deduction of proposed personal loan installment) of an employee drawing salary upto Rs. 10.00 lakhs annually under no circumstances should be less than 50% of his/her gross emoluments;
The carry home pay (including deduction of proposed personal loan installment) of an employee drawing salary above Rs. 10.00 lakhs annually under no circumstances should be less than 40% of his/her gross emoluments;
7. REGULARITY OF INCOME:
7.1(a)For Salaried class:- Latest salary slip, Form16/ITR for the last 3 years be taken, perused and placed on record. Assessment of Loan/ Repaying capacity be arrived at on the basis of latest salary slip;
(b)For businessmen :– latest 3 years ITR Returns
7.2 Obtain last 6 month’s salary account statement of prospective borrower. CA /CCL account statement of last 6 months in case of businessmen.
7.3 The regularity of income of borrowers over the entire span of loan should be ensure before sanction of loan.
7.4 Salary certificates must be independently verified from HR Deptts./ Admn. of the concerned office by the BM/ Acctt./JA.
7.5 Further, Specific CARE be exercised in respect of IT returns showing SUDDEN SPURT in the salary/ income levels. Recommending/ sanctioning authority to fully satisfy himself/ herself before considering acceptance of such income/ salary. Justification/ basis of the same be provided in the recommendation/ sanction note.
7.6 Illustrative charts indicating Equated Monthly Installment to cover repayment of principal and interest have been provided with the scheme.
7.7 For Recovery/ Repayment of EMIs – NACH Debit Mandate/ PDCs equivalent to EMIs of loan. Further, Branch Managers are advised to take few additional cheques as security. However, such instruments are to be used only for purpose of taking legal action under Payment and Settlement Act.