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.