HomeCorporate BankingBusiness LoansTruck / Lorry Finance

Truck / Lorry Finance

loan to buy the best truck / lorry for your business

Learn more about our Loan a Truck Scheme under TMB Business Loan Products.

Our popular loan a truck scheme helps the urban community to avail of loans to buy a truck for business. The criteria and conditions for sanction are relaxed to help extend the loan to the needy people at attractive rates of interest and low processing charges.

Purpose
To purchase a new Commercial Vehicle (Light / Medium / Heavy).
Eligibility
Individual, Proprietary concern, Partnership Firm, Company.
Form of Advance
Term Loan.
Primary Security
Hypothecation of Vehicle to be purchased.
Collateral Security
Tangible and marketable collateral security to cover at least 50% of the loan amount (or) Credit Worthy Third Party Guarantee.
Loan Quantum
Upto Rs. 75.00 Lakhs.
Margin
If repayment is within 36 months - 15% of the Vehicle On Road Cost. If repayment is beyond 36 months and upto five years - 20% of Vehicle On Road Cost. Margin for Body Building, if the said work is outsourced - 25%
Appraisal
The average Debt Service coverage ratio should not be less than 1.50:1.
Insurance
Hypothecated Vehicle should be insured for full value with our Bank Clause.
Sector
Loans to SRTO owning not more than ten vehicles (including the one proposed to be financed) - Priority Sector
Other than SRTO - Priority Sector Or Non-Priority Sector based on the purpose for which vehicle is acquired and the activity of the borrower.
Repayment
Up to maximum of 5 years excluding installment holiday of 3 months.
Rate of Interest (A)
  • Loans released upto Jun 16, 2009
  • BR + 4.00% (15.00% p.a.) if repayment period is upto 36 months.
  • BR + 5.00% (16.00% p.a.) if repayment period is above 36 months.
  • Current Base Rate for Lending (BR) is 11.00% p.a.
Rate of Interest (B)
    Loans released on or after Jun 17, 2009
  • BR + 3.25% (14.25% p.a.) if repayment period is upto 36 months.
  • BR + 4.25% (15.25% p.a.) if repayment period is above 36 months.
  • Minimum Rate Clause: The ROI will not come down if BR is reduced below 8.50%. But in case the BR increases to more than 8.50%, then ROI will also increase to that extent.
  • Current Base Rate of Lending (BR) is 11.00% p.a.
Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
Processing Charges
1.00% of Limit sanctioned without any maximum cap.
Other Stipulation
  • Our Bank’s hypothecation charge should be duly registered with the Regional Transport Authority and it should be recorded in the RC Book.
  • Duplicate Key and RC Book copy should be obtained and kept along with the loan documents
Guarantee
Third Party Guarantee should be obtained if there is no collateral.
Documentation
Usual Documentation as per Bank Norms.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.