Q Who can avail Vehicle Loan?
Individuals and Business Concerns.
Q Whether finance is also available for used cars?
Finance is also available for purchase of used cars not older than 3 years.
Q How much loan can be availed under the scheme?
For individuals 25 times Net Monthly Salary / Income or Nu.2.5 million, whichever is lower, looking to the repaying capacity of the prospective borrower, under vested loaning powers specified in the Scheme.
Income of spouse can be taken into account for determining loan amount. In such cases, the spouse shall stand as an additional guarantor.
For Business Concerns (Corporate or Non-Corporate)
No ceiling in loan amount is proposed as business concerns may require one or more vehicle costing above Nu.2.5 million. Sanctioning authority to deal with such proposals as conventional term loan proposal and should satisfy about the earning / repaying capacity of the business concern and exercise powers as specified in the Scheme.
Q Whether the income of the spouse is also taken into account for determining the amount of loan?
Yes, income of the spouse can also be taken into account for determining the amount of loan. In such cases, the spouse shall stand as a guarantor.
Q What will be the repayment period?
Amount of loan together with interest shall be repayable maximum in 84 equal monthly installments. However, for old car, loan together with interest is to be repaid maximum in 60 equal monthly installments.
Q Whether interest applicable is flat rate or at reducing balance?
Interest is charged on reducing balance.
Q What formalities are to be completed for availing the facility?
The following documents are required to be submitted:
Performa Invoice of Car to be purchased.
Citizenship Id Card
Proof of Income
Details of guarantor.