Vehicle Loan

Purpose For purchase of
  • New Four Wheeler
  • Used Four Wheeler
  • New Two Wheeler
Age of applicant
  • Entry age is 18 years and exit age is 60 years
Income Criteria
  • Salaried: Minimum three years of Service (Including previous employment / experience) & confirmed in present employment
  • Business: Last three years IT Returns
Take Home Pay
  • 40% of Gross pay as Net Take Home Income post all EMI deductions (existing and proposed) should be available.
Eligible Amount
  • 20 times of Gross Monthly Salary/ Income
Maximum Loan Amount
  • Max. ₹10.00 lakhs for 2 wheelers
  • Max. ₹200.00 lakhs for 4 wheelers
  • New Vehicle -25%
  • Used Vehicle – 40%
Rate of Interest
Repayment Period
  • New Vehicle - Maximum up to 60 months
  • Used Vehicle - Repayment period stipulated “plus” the age of vehicle at the time of sanction should not exceed 84 months.
  • For Loans upto ₹25 Lakhs:
    a) Hypothecation of Vehicle purchased out of the loan amount
  • For loans above ₹25 Lakhs:
    a) Hypothecation of Vehicle purchased out of the loan amount
    b) For portion beyond ₹25lakhs, 100% collateral security in the form of EM of properties/ NSC /fixed Deposits / Surrender value of LIC policies to be stipulated.
  • For all Vehicle Loans - guarantee of spouse / third party (in case spouse is not available / unmarried)
  • Bank’s lien should be noted on the RC book of the vehicle.
  • In case of second hand vehicles, no prior lien should persist on the vehicle
Processing Charges
  • 2 Wheeler – 1.20 % of limit sanctioned
  • 4 Wheeler (New & Used) – 0.30 % of limit sanctioned
How to apply
  • Please contact nearest Tamil Nadu Grama Bank’s Branch for more details