Auto loans can be used to purchase vehicles for personal or business use. They are processed similarly to other retail loans. Eligible applicants include salaried individuals, self-employed professionals, farmers, and business owners between certain ages who meet minimum income requirements. Documents required include ID proof, income proof, residence proof, and bank statements. Interest rates vary by vehicle type and tenure but are typically between 8-12% for 2-4 wheelers. Loans have terms of 3-7 years. Borrowers must provide a down payment or margin of 15-40% and the vehicle is used as collateral through lien or hypothecation.

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)
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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.