Vehicle Loan


  • In today's busy & fast moving world, cars /two wheelers are no longer a luxury but have become necessities of life. One can take care of this necessity by availing finance from Bombay Mercantile Co-op Bank Ltd. under Vehicle Loan Scheme at competitive rate of interest and easy r epayment terms.

Under the scheme one can avail finance for purchase of Cars/Two Wheelers of any make, new as well as second-hand vehicles less than 3 years old.

Any Individual, Proprietary/Partnership concerns as well as Limited Companies are eligible to avail finance under the vehicle loan scheme; provided they have adequate repayment capacity.

25% of the case of vehicle to be acquired -

36 equated monthly instalments

Purpose

Under the scheme one can avail finance for purchase of Cars/Two Wheelers of any make, new as well as second-hand vehicles less than 3 years old.

Eligibility

Any Individual, Proprietary/Partnership concerns as well as Limited Companies are eligible to avail finance under the vehicle loan scheme; provided they have adequate repayment capacity.

Margin

25% of the case of vehicle to be acquired -

Period of Repayment

36 equated monthly instalments

Under the Vehicle Loan interest is charged on daily products basis. This comes out to be much cheaper than that of many other agencies who charge interest on flat rate basis. Penal interest is however levied on overdue instalments.

As prescribed by Bank for time to time, Present interest rates are as under

Purchase of Car / Two Wheeler(For self use)
10.50%
Commercial Vehicles
14.25%
Taxi/ Auto Ricksaw in case of Owner Driven upto Rs. 2.00 lacs
12.25%
Taxi/ Auto Ricksaw in case of Owner Driven above Rs. 2.00 lacs
12.75%

As per chart

The loan can be repaid in equated monthly instalments. The amount of EMI would depend on quantum and period of loan.

It is possible to make accelerated repayment of the loan for which bank does not levy any pre- payment charges, unlike many other agencies.

  • Hypothecation of vehicle with noting of charge with RTO.
  • Comprehensive Insurance Policy of the vehicle with Bank's clause.
  • Sureties of the persons acceptable to the Bank .
  • The borrower / Guarantors have to become members of the bank and acquire requisite shareholding as per rule.