Purpose:
The finance under this scheme shall be available for purchase of fresh Commercial Equipments/Machines/ Vehicles required towards business activity and for captive use only like construction equipments (loaders, excavators, cranes etc Backhoe loaders, Excavators/ Diggers/JCBs, Dumpers, Pavers, Transit Mixers, Wheel loaders, Compactors, Cranes, Skid Steers, Telehandlers, Drillers, Dozers, Graders, Heavy DG Sets and all other necessary equipment’s involved in construction, mining, etc), mounted vehicles approved by Transport Department.
The models/ makes of equipment/machine to be financed should be of standard make and must conform to ISI/ BIS test standards.
Eligibility:
· Any Individual/ Proprietorship firm/ Partnership Firm/ Company with a minimum one year of business experience.
· Applicants using equipment for self-purpose, existing business, mine owners and contractors.
· The borrower should have sufficient net worth to pay for the margin and initial recurring expenses. The intending borrower must possess sufficient assets to pay the bank loan out of other sources in case of any unseen set back to the business for which the finance is made.
· The applicant should have sufficient work orders/contracts (if applicable) at hand to justify the viability of the unit and must have a satisfactory past record.
· The intending borrower should have sufficient knowledge and experience in the line and must engage an experienced/ skilled operator to operate the machine/ equipment/vehicle.
Age of the Borrower:
· Minimum 18 years at the time of loan application.
· If applicant’s age is between 18 years & 21 years, then co-borrower (blood relative) meeting the age norm, acceptable as per Bank’s norms should be taken.
· Maximum 75 years at the expiry of proposed loan tenure.
· Younger family members, acceptable as per Bank’s norms, can join as Co-Borrowers and his/her age can be considered for fixing the repayment period.
Quantum of Loan:
Maximum 70% to 85% of the ON-ROAD price.
Margin:
At least 15% to 30% (ON-ROAD) of the on-road cost, as applicable.
Security:
·Primary: Hypothecation of the equipment/machine/vehicle to be purchased. Bank’s lien/ name to be noted in the books of the RTO concerned and also in the Registration Certificate.
·Collateral: As per scheme of the Bank.
Repayment Period:
Maximum repayment period of 72 months after an initial moratorium period of 2 months. The repayment of loan along with interest shall be in 70 Equal Monthly Installments. However, insurance and other costs are to be borne by the borrower separately.
Processing Charges:
0.50% + Applicable GST
* Conditions Apply