Used/Second Hand Commercial Vehicle Loan


The finance under this scheme is available for purchase of Used/ Second hand commercial vehicles like Used Trucks, Tippers, Buses, Mini Buses, light commercial vehicles, pick-ups, three wheelers (cargo), auto rickshaws, etc. of any approved make or model. The vehicle should not be more than 6 years old as on the date of finance. The product shall also cover takeover of loan accounts from our bank or from any other banks/ financial institutions, provided such loan account is running satisfactorily without any default in payment of installments as per the fixed repayment schedule.

The makes/ models of vehicles, to be financed, should be approved by Transport Deptt. of J&K State Government for commercial purposes.


1. Individuals/ Proprietorship/ partnership firms & Limited companies owning & operating or proposing to own & operate by himself/ itself transport vehicles for carrying passengers or goods on hire.
2. The borrower should have sufficient net worth to pay for the margin and initial recurring expenses.
3. Ownership of a pre-owned vehicle is not mandatory.
4. Minimum age of Applicant: 21 years
5. Maximum age of Applicant at loan maturity: 65 years.
6. Minimum experience in the transport business for individuals: 2 years.
7. Minimum period of existence (For firms & companies): 2 years in transport line.
8. Borrower should reside within area of operation of branch.

Quantum of Loan:

Loan amount for each used vehicle shall be equal to the value of vehicle less margin amount, subject to a maximum limit of Rs.7.50 lacs per vehicle with an aggregate limit of Rs.15 lacs per borrower.


25% of the valuation amount of vehicle


1. Maximum repayment period: 60 months for vehicles having age less than 3 years.
2. Maximum repayment period: 48 months for vehicles having age of 3 to 6 years.
3. The minimum repayment period shall be 6 months.
4. The repayment shall be in Equated Monthly Installments.
However, insurance and other cost shall be borne/ paid by the borrower separately.


i) Primary:
Hypothecation of vehicle to be purchased. Banks lien/ name as hypothecatee to be got noted in the books of the RTO and also on the Registration Certificate (RC).

ii) Collateral:
Up to Rs 10 lacs: 3rd party guarantee of 2 persons
Above Rs 10 lacs: 3rd party guarantee of two persons and Mortgage of immovable property valuing equivalent to the loan amount including per party/ family exposure.

Processing Charges:

0.50% of the Loan Amount

* Conditions Apply