Commercial Vehicle Loan

To be at par with market and to ensure we are able to cater to the requirement of our existing clientele at prevailing market rates and to attract established units with strong financials and business model, we propose to introduce a more competitive product looking to the potentials in the market. We have now decided to introduce the scheme and interest rate of Commercial Vehicle w.e.f. 01/05/2017 as given below.

Particulars	Scheme Guidelines
Name of the scheme	KAL Commercial Vehicle Loan Scheme
Eligibility	Existing customer with proven track record of 3 years and in case of new borrower if already in the same business line and profit making for last 5 years with minimum fleet of 5 Commercial Vehicles / Road Transport Equipments / Other Utility Commercial Vehicles, satisfactory credit history of commercial vehicle borrowing and audited balance sheets for last 3 years.
Purpose	The purpose of credit facility under the scheme shall be term loan for the purchase of only new Commercial Vehicles , Road Transport Equipments and Other Utility Commercial Vehicles .
Proof of activity	The applicant enterprise must be in possession of registration / licenses, as applicable under local law e.g. Shop Establishment act, Sales Tax Registration, Road Permits, IT Returns or any other relevant permission / license from RTO.
Quantum	The maximum quantum of credit facility shall be 85% of on road cost of vehicle (on road cost of vehicle includes chassis + body building cost + Registration + Insurance + Road Tax + Accessories etc.) for new Commercial Vehicles.
Type of facility	Term Loan only. Working capital requirement if any for Transport Operators, Logistic Companies may be considered on the lines, we do for other traders .
Security	Primary security: The primary security will be hypothecation of vehicle/s in Bank’s favour to be registered with RTO & blank TTO transfer forms should be obtained duly signed by borrowers.
Collaterals	Up to Rs.75/- lacs - NIL In other cases based on the merits of each case.
Guarantee	Third party guarantee be obtained in all such loans, besides personal guarantee of Directors / Partners as per the constitution of the entity be obtained. Guarantor must have adequate means commensurate with the size of the loan based on verifiable documents such as balance sheet, property record etc.
Margin	15% of on the road cost of the Commercial Vehicle/s.
Insurance	Comprehensive insurance policy with bank clause is compulsory, and be renewed periodically during entire tenure of the loan at borrowers’ cost.
Rate of interest	10.50% p.a. - only for new loan accounts.
Internal Credit Rating	The rate of interest is de-linked from internal credit rating however the rating of all existing borrowers above Rs 1.00 crore be carried out as per the existing guidelines.
Repayment Tenure & option	Tenure – Maximum up to 60 months. Option - EMI / Non - EMI
Processing fees	As applicable for other advances.
Documentation fee	As per the present guidelines.
Supervision charges	As per the present guidelines.
Share linking	1% of the the loan amount (Maximum – Rs. 2.00 Lacs)

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