Purpose

To finance any vehicle including Electric / CNG / LNG / Hybrid registered with Road Transport Office (RTO) to be used for commercial purpose.

Eligibility

All commercially active entities including individuals, firms, LLPs, companies, societies, and educational institutions can apply. The scheme suits both new and existing transport operators using vehicles for business purposes

Limit
Term Loan :

Up to ₹5 crore for purchasing new or used commercial vehicles (used vehicle must cost at least ₹5 lakh).

OD Limit :

₹50,000 per vehicle financed by the bank, up to a maximum of ₹10 lakh per borrower

Margin
New Vehicles :

10% for loans up to ₹2 lakh; 15% for above ₹2 lakh (on-road price).

Used Vehicles :

25% margin; vehicle should not be older than 2 years.

Security
Primary:

Hypothecation of the vehicle financed (RTO-registered in bank's name).

Collateral:

 

Up to ₹10 lakh:

No collateral (covered under CGFMU).

Above ₹10 lakh:

50% collateral or full CGTMSE coverage or a hybrid of both.

Repayment
Tenure:

Up to 60 months for new vehicles. For used vehicles, up to 60 months minus vehicle age (max 2 years old).

Rate of Interest

Starting from 8.95% to 12.55%*

Charges

For Service Charges, Please Click here

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