The National Co-operative Bank Bangalore, The National Co-operative Bank Gandhibazaar

Vehicle Loans

Eligibility	Member/Associate Member of the Bank
Area of Operation	Bangalore Urban and Bangalore Rural District (whether to specify area which will be covered - MAP)
Number of sureties required	Spouse of the applicant and the co-obligation/surety of one or more members of the family may be accepted if advised by legal adviser for legal compliance and/or to reckon the income of the family members to arrive at repaying capacity. Co-obligant/ surety’s should be member/ associate member. Otherwise they can become nominal member by payment of nominal membership fee of Rs.100/-. The Member having any liability with the Bank, should have paid the instalments / interest upto date on the date of submission of Loan application if he /she has availed any Loan from the Bank (including co-obligant/sureties).
Documents required: As applicable to security offered	1. Invoice 2. Copy of Driving Licence 3. Copy of RC Book and insurance (used vehicle)
Maximum limit	Rs.50.00 lakhs Rs.5.00 lakhs for used four wheeler
Margin	10% of Value of the vehicle with collateral security. 20% of Value of the vehicle 20% of Value of the used vehicle as assessed by Bank’s valuer.
EMI	Monthly compounded on reducing balance (EMI for your required of loan refer EMI Calculator)
Maximum Repayment Period	84 Months including moratorium period.
Moratorium period	Maximum of 3 months (Transport Vehicles only)
Income Proof	Latest Salary Slip and Form – 16 issued by employer if assessee - IT returns, balance sheet, P & L A/c and computation of income. Rental agreement (income proof). The applicant should furnish full information about his source of income / income generating capacity along with documentary evidence to assess his repaying capacity. Any other income proof acceptable to the Bank.
Mortgage type	The mortgage shall be registered in the Office of Sub Registrar having its Jurisdiction and Encumbrance certificate should be obtained incorporating the Bank charge recorded in the books of Sub Registrar.
Charge on the Vehicle	Vehicle should be hypothecated to the Bank
Release of loan	The proceeds of the loan amount shall be paid to the dealer of the vehicle from whom the borrower intends to purchase the vehicle, duly debiting the margin amount to the party’s SB/CA, getting a letter to this effect. In cases of purchase used vehicles proceeds of loan amount shall be paid to owner of the vehicle.
Documents required substantiating the purpose of loan	Invoice from the vehicle dealer, driving licence, Proof for margin money.
Interest rate and interest application frequency	10.50% The Rate of Interest will be charged and compounded at monthly intervals and interest so charged will be capitalised. Interest rate is subject to revision from time to time as per the directives of Reserve Bank of India or as per the decision of the Board of Directors.
Charges	1. Service charges 0.5 % of the loan amount sanctioned + service tax + Valuation charges of Rs.500/- in case of used vehicles. In case of collateral security of immovable property, 1. Processing charges Rs.2079/- (including legal and valuation) 2. In case of registered mortgage stamp duty of 0.10% of the loan amount sanctioned + reg fee. Of 0.10% of the loan amount sanctioned. 3. The above charges are subject to change.
Share link:	Share link to borrowings at 2.50% of the Loan amount sanctioned plus share fee of Rs. 5/- per share of Rs.100/- each are payable at the time of release of Loan.
Insurance	The vehicle should be comprehensively insured with Bank clause and borrower should arrange for renewal of insurance policy every year at his cost and produce the policy within the due date. In case the borrower fails to produce the insurance policy the bank shall arrange to get the insurance coverage for the vehicle by debiting the loan account. The borrower shall get the mortgaged property insured against fire and other risks and the premium has to be paid by the borrower. Such fire policy shall be in the name of the borrower with Bank clause and renewed every year and if the borrower fails to do so the bank is empowered to debit the members’ account and renew the insurance.
Commitment charges for loans not availed within specified period of sanction.	1% per annum on the loan/limit sanctioned from the date of sanction till the date of availment. Fraction of days, more than 10 days shall be treated as month. If the loan is not availed within 4 months from the date of communication of sanction, commitment charges should to be collected. The loans, if not availed within the above period of sanction requires renewal with commitment charges.