Auto loans
Upcoming SlideShare
Loading in...5

Like this? Share it with your network

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 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.