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Car Loan

ride your favourite car with car loans from us
Car Loan - ride your favourite car with car loans from us

Learn more about our Car Loan Scheme under TMB Retail Loan Products.

Our car loan scheme is among the most popular of all the retail loan schemes since it offers quick processing of loans for the purchase of new cars at low interest rates and very simple documentation and conditions.

 

Purpose

  • To buy New Car / Four Wheeler for personal or professional use.
  • To buy Pre Owned (Used / Second Hand) Cars in good working condition and not more than 4 years old.

Eligibility

Individual/Partnership Firm/Limited Company/Trust: Individual with a minimum gross income of Rs.1,20,000.00 per annum (Including the income of spouse). For others the average debt service coverage ratio should be 1.50:1 or more.

Loan Quantum

Up to Rs. 50 Lakhs for New Vehicle.
For Purchasing Second Hand Cars: Restricted up to Rs.15.00 Lac

Margin

15% of "On Road Price" for New Vehicle / 30% of the Purchase Value or Market value of Pre Owned Cars whichever is lower.

Guarantee

Third Party Guarantee. May be waived for appropriate cases.

Repayment

5 Years. Equated Monthly Installment. For salaried persons -EMI should not exceed 40% of Take Home Salary/Net Income

Security

Hypothecation of Vehicle to be Financed.

Rate of Interest

  • Upto 36 Months - PLR - 2.50% (11.75% p.a.).
  • Over 36 months & upto 60 Months - PLR - 2.00% (12.25% p.a.).
  • Non Scheme Upto 36 Months - PLR - 1.25% (13.00% p.a.).
  • Non Scheme Over 36 months & upto 60 Months - PLR - 0.75% (13.50% p.a.).
  • Current Prime Lending Rate (PLR) is 14.25% 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

  • 0.50% of the Loan Amount
  • For Loans below Rs. 50,000.00 Minimum Charges is Rs. 100.00
  • For Loans Rs. 50,000.00 and above Minimum Charges is Rs. 500.00 and Maximum Charges is Rs. 1,00,000.00

Prepayment Charges

At the rate of 0.25% of amount prepaid. In case, where the loan is closed by way of Take Over by 0ther Bank alone will attract prepayment Charges. However, no prepayments charges will be levied in cases where the loan is closed by the borrower from own sources of funds.

Documentation

Usual documents as per our Bank Norms.

How to Apply

Loan Application Letter to be accompanied by: 1. Proof of Income (IT Return/Salary Certificate/Others). 2. Quotation. 3. Letter from Third Party Guarantor, if applicable.

Other Stipulation

  • Hypothecated Vehicle should be adequately insured.
  • 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.

Loan application has to be accompanied by:

  • Proof of Income (IT Return / Balance Sheet / Salary Certificate / Others).
  • Quotation from registered vendor.
  • Letter from Third Part Guarantor, if applicable.

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.