Car Finance

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Car Finance

  1. 1. Credit Policy For Car Loan<br />Presented By Group No.8<br />ParagChheda Roll No.09<br />Rajesh Adiody Roll No.01<br />PoonamChaudhari Roll No.08<br />Manish Kansara Roll No.24<br />Rajesh Shetty Roll No.53<br />AvinashRane Roll No.43<br />GaneshTondwalkar Roll No.58<br />
  2. 2. Credit Policy For Car Loan<br />Broad Product Construct<br />Loan Purpose<br />Collateral : A Secured lending Product<br /> The Car hypothecated in favour of bank<br />Loan Amt : INR 1 lakh to 32 Lakhs<br />Tenure : 12 Months to 84 Months<br />Repayment : EMI for selected tenor paid by Post dated cheques or ECS or standing instruction.<br />Re-finance<br />Top -up<br />New Car<br />
  3. 3. Credit Policy For Car Loan<br />Basic Criteria<br /><ul><li>Customer Segment : Salaried and Self employed.
  4. 4. Age : For salaried - 21 yrs to 60 yrs (or retirement +1)</li></ul> Self employed – 21 yrs to 65 yrs.<br /> (Co-applicant is mandatory if age is above 65 yrs)<br /><ul><li>Loan Amount : INR 1,00,000 to Max. 32,00,000/-
  5. 5. Tenure : Minimum 1 year to Maximum 7 years.
  6. 6. Nationality : Resident & Non Resident Indians.
  7. 7. Residence Stability : At least 1 year in current city.
  8. 8. Emp. Stability : Salaried – Total 2 yrs work experience.</li></ul> Self Emp.- 2 yrs in the same business.<br /><ul><li> Customers with rented Residence Cum Office will not be funded.</li></li></ul><li>Credit Policy For Car Loan<br />Basic Criteria<br /><ul><li>Bureau Score : CIBIL based Scoring (High/Med/Low)</li></ul> High Score : CIBIL above 785 points<br /> Med. Score : CIBIL between 745 to 784<br /> Low Score : CIBIL between 726 to 744.<br /><ul><li> Case below Fatal cut – off not eligible. (Below 725 CIBIL)
  9. 9. Bureau Policy : Customer new to credit (with no repayment history) can be funded with max. loan of 3.5 lac
  10. 10. Delinquency norms : No Delinquency in last 3 months.</li></ul> Credit card default/ write off of o/s &lt; 5000 of more <br /> than 1 year old can be ignored if service related issue<br />
  11. 11. Credit Policy For Car Loan<br />Income Assessment Cap<br />Note : Evidence for at least 2 years is required<br />
  12. 12. Credit Policy For Car Loan<br />Loan To Value (LTV) Grid<br /> LTV grid for 36 Months<br />NOTE : Changes to GRID :- 5% less LTV respectively for tenors <br /> between 36 to 84 Months. <br />CAT 1 Cars :- Price Below Rs.5,00,000 Ex. Santro / Indica / Estillo etc.<br />CAT 2a Cars :- Price between Rs.5,00,000 to 15,00,000 Ex. Corolla/ Honda City etc.<br />CAT 2b Cars :- Price above Rs.15,00,000/- Ex. Mercedes/ BMW/Accord etc.<br />CAT 3 Cars :- MUV / SUV Ex. Tavera/ Sumo/ Scorpio/ Maruti Van etc.<br />
  13. 13. Credit Policy For Car Loan<br />Negative / Caution Risk Profile<br />MAX. LTV – 60% MAX. TENOR – 3 YRS MAX. LOAN AMOUNT – Rs.10,00,000<br />
  14. 14. Credit Policy For Car Loan<br />List of Documents Required<br />PRE-APPROVAL DOCUMENTS<br /><ul><li>Application Form
  15. 15. Bank Statement
  16. 16. ID Proof (Pan card/ passport/license/voter’s Id card)
  17. 17. Sign Veri. Proof (Pan card/passport/license/Banker sv)
  18. 18. Resi.proof (Utility bill /passport /voter’s id / license / </li></ul> Ration card / sale agreement)<br /><ul><li>Income Proof ( IT return/ Form 16/ Salary slip)
  19. 19. Performa Invoice (Provided by Dealer)</li></ul>POST- APPROVAL DOCUMENTS<br /><ul><li>Agreement kit
  20. 20. Post Dated Cheque/ ECS / Standing Instruction
  21. 21. Margin Money Proof
  22. 22. Insurance Cover Note</li></li></ul><li>Credit Policy For Car Loan<br />Different Programs Offered<br />
  23. 23. Credit Policy For Car Loan<br />Verified Income Group (VI)<br /><ul><li>Maximum Loan Amount : Rs.32,00,000/-
  24. 24. Loan To Value : As per Grid Table (Capped Max. to 95%)
  25. 25. Tenor : Standard ( 12 to 84 Months)
  26. 26. Loan Eligibility :</li></ul>Banking Norms : Latest 03 months banking from main account.<br />Average Bank balance = 1 time of EMI (Avg bal calculated on 10,20 & 30th of month)<br />Minimum 03 customer initiated transaction in a month<br />
  27. 27. Credit Policy For Car Loan<br />Credit Card Product (CC)<br /><ul><li>Maximum Loan Amount : Rs.4,00,000/-
  28. 28. Loan To Value : As per Standard Grid
  29. 29. Tenor : Maximum 60 Months
  30. 30. Credit Card Norms : Minimum 06 month old card</li></ul> Minimum limit Rs.50,000 & primary card holder<br /> No over limit & cheque bounce in statement submitted<br /> At least 3 customer initiated transactions in last 2 months<br /><ul><li>Banking Norms : Latest 03 months bank statement</li></ul> In last 03 month outward cheque return should <br /> not be more than 1<br /> Minimum 03 customer initiated transaction in a month <br /> Average bank balance to be calculated.<br />
  31. 31. Credit Policy For Car Loan<br />Banking Product (BB)<br /><ul><li>Maximum Loan Amount : Rs.20,00,000/-
  32. 32. Loan To Value : As per Standard Grid
  33. 33. Tenor : Standard tenor ( 12 to 84 months)
  34. 34. Target Customer : Salaried and Self Employed only.
  35. 35. Banking Norms :</li></ul> 06 month bank statement of more than 12 month old A/c<br /> Minimum 12 customer initiated transaction in last 6 month<br /> There should be no Inward cheque return in last 3 month<br /> Average bank balance of last 6 months = 2*EMI<br />
  36. 36. Credit Policy For Car Loan<br />Low LTV Product (LL)<br /><ul><li>Maximum Loan Amount : Rs.20,00,000 only
  37. 37. Loan to Value : Maximum 70%
  38. 38. Tenor : Maximum 60 Months
  39. 39. Target Customer : Salaried and Self Employed
  40. 40. Additional Norms : Resi. Ownership proof mandatory
  41. 41. Compulsory Norm : Credit Manager visit is compulsory.</li></li></ul><li>Thank You<br />

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