IB Loan For Purchase of Van/ Bus By Eduacational Institutions

Loan for Purchase of Van/Bus by Educational Institutions

Purpose

Purchase of New Vehicles and second hand vehicles not more than 5 years old by reputed Educational Institutions with sound financials and smooth cash flow

Interest rate w.e.f 10.11.2008

BPLR + TP + 0.50% i.e. 14.25% floating

Eligible Amount

Max. : Rs.10 lakh for bus with capacity of 45 (approx.)

Max. : Rs. 7 lakh with 21 seater capacity

Max. : Rs. 5 lakh, if it is Mahindra Van

Margin

For new vehicles: 20% on the cost of vehicle

For Second Hand Vehicle: Additional Margin of 5% for each year to be brought in by the applicant according to age of the vehicle. (e.g. if a vehicle is 4 years old, with 20% extra margin( i.e. 5% x 4) the total margin will be 40%)

Repayment

* Repayment in 60 equated monthly instalments (EMI of Rs. 222.16 for Rs. 10,000/-)

Service charges

1.15% on limit sanctioned

Security

Hypothecation of vehicle to be purchased

Insurance

Vehicle to be insured and policy to be renewed annually with bank Clause at Borrower's cost

Lien

Bank's lien should be noted in RC Book


Other conditions

* Documents to be taken as per documentation manual as applicable for Vehicle Loan.
* Educational Institution to maintain a Current Account with the Branch at which the loan is disbursed and all their fee collections and other income to be routed through the account.
* Amount should be disbursed by a crossed DD /BPO direct to the authorised dealer.
* Wherever collateral security / guarantee is available, and if considered necessary by the Sanctioning Authority, a suitable condition may be stipulated at his discretion.
* If second hand vehicle is financed, collateral security or suitable personal guarantee to be insisted upon.
* Repayment capacity to be verified through Cash Flows and Income / Expenditure Statements of the School. Loans to be extended only in respect of Educational Institutions where the salary payment to the staff / teachers is regular and upto date and the cash flows of the Educational Institutions permit such repayment.
* In case of Educational Institutions having borrowing facilities with other Banks, satisfactory credit Reports must be obtained.

In the case of second hand vehicles :

* The road-worthiness and valuation should be vouched by an Automobile Engineer / Valuer.
* Loan quantum will be based on the value as above with additional margin of 5% for each year to be brought in by the applicant according to age of the vehicle.
* The Track Record of insurance claims of the past should be verified to ensure that the vehicle has not met with any major accident in the past.

---

This information is brought to you by Harmony Infotech.
Contact us if you are looking for a Website Security.

---