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Auto loans

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  • 1. Auto Loans Presenters  Hari vardan  Anurag  Bhavana
  • 2. o Auto loans are loans processed for vehicles and have to go through the same process of approval like any other retail asset loan.
  • 3. Purpose o For purchase of 2/3/4 wheelers /heavy road/ water transport vehicles / for personal/ Business/ Commercial purpose.
  • 4. Types of Auto loans o Car Loans o NRI Car Loan o Two - Wheeler Loan o Used Vehicles Loan
  • 5. Eligibility (public sector banks)  Individual between the age of 21-65 years of age.  A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or  A Professionals or self-employed individual who is an income tax assessee or  A Person engaged in agriculture and allied activities.  Minimum Net Annual Income Rs. 75,000 (for regular petrol/diesel/gas operated scooters & motor cycles) and Rs. 60,000 (mopeds and battery-operated Twowheelers
  • 6. KYC (public sector banks) You would need to submit the following documents along with the completed application form:  Statement of Bank account of the borrower for last 6 months.  2 passport size photographs of borrower(s).  A copy of passport /voters ID card/PAN card.  Proof of residence.  Latest salary-slip showing all deductions.  I.T. Returns/Form 16: 2 years for salaried employees and 2 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable.  Proof of official address for non-salaried individuals.  Signature identification from bankers of borrower(s).
  • 7. Interest rates and Tenure (public sector bank)  Auto Loans run Usually between 36 months to 84 months depending on the policy of the bank. Two - Wheeler Loan  Up to 3 years - 8.25% above Base Rate i.e. 18.05% p.a.  Above 3 yrs -8.50% above Base Rate i.e. 18.30% p.a. Car –Loans  For all tenures- For Term Loan and Overdraft 0.75% above Base Rate, i.e. 10.55% p.a.
  • 8. Cont…  LoanToValue 85%  No Advance EMI.  Free Accidental insurance.  Low processing fee (only 1.22% of loan amount)
  • 9. Eligibility (Private sector banks) Salaried Individuals :  Minimum age of applicant: 21 years  Maximum age of applicant at loan maturity: 70 years (Conditions apply)  Income: Minimum Net Annual Salary of Rs. 2.4 Lac p.a. for all approved car models  Income eligibility: As per latest salary slip and Form 16  Employment: Minimum 1 year of continuous employment
  • 10. Cont… Self-employed Individuals :  Minimum age of applicant : 18 years  Maximum age of applicant at loan maturity : 75 years  Income: Minimum Net Annual Business income of Rs. 1.8 Lac p.a. for selected models and Rs. 2.0 Lac p.a. for others  Income eligibility - As per latest ITR  Employment: Minimum 3 yrs in same line of business.
  • 11. KYC (private sector Banks)         Age proof ID proof Application form Photograph Residence proof Income proof Bank statement Signature verification proof Post Sanction / Pre Disbursement Documentation :  Loan Agreement duly signed along with RTO set  Standing Instruction (SI) Request / ECS Form / Post Date Cheques (PDCs). Security Cheques required for SI and ECS  Margin money receipt
  • 12. Cont…  Loans offered from Rs. 1 Lakh onward Car.  Loans tenure from 36months – 84 months.  Rate of Interest is 11.50.  LTV up to 95%.
  • 13. Eligibility (NBFC’s)  Be a salaried or self-employed individual.  Individuals into agricultural & allied activities  Be between the age of 21 years (at the time of application) and less than or equal to 65 years (at the end of the loan tenure).  Reside for at least 1 year in the city.  Be working for at least 1 year.
  • 14. KYC (NBFC’s)  Proof of Identity  Address Proof  Income Proof: 1. For Salaried 2. For Self-Employed Copy of the latest I. T. return. 3. Individuals into agricultural & allied activities: Repayment Track record, Kisan Credit Card Statement, Form J or Krishi mandi receipt or Agri samiti receipt, Ownership of Tractor-Collection of RC copy, Land document, Milk Pass Book.
  • 15. REPAYMENT The Repayment is based on Equated Monthly Installments comprising of principal as well as Interest Payment. RATE OF INTEREST A Floating rate of interest is applied to the Auto Loans and Usually the interest rate is pre determined.
  • 16. MARGIN SECURITY Margin for 2and 3 Security is in the Wheelers is 25% for other vehicles 15% to 40% based on the value of the vehicle. form of Lien/ Hypothication.