Tamilnad Mercantile Bank’s loan a mini truck scheme helps the urban community to avail of loans to buy a mini truck like Tata Ace.
The criteria and conditions for sanction are relaxed to help extend the loan to the needy people at attractive rates of interest and low processing charges.
Purpose: To purchase new TATA Mini Truck.
Eligibility: Individual, Proprietary, Partnership Concern, Company ,Trust.
Form of Advance: Demand Loan / Term Loan.
Primary Security: Hypothecation of Vehicle to be purchased.
Collateral Security: Need not be insisted.
Loan Quantum: Upto Rs. 2.50 Lakhs.
Margin: If repayment is within 36 months – 10% of the Vehicle On Road Cost. If repayment is beyond 36 months and upto five years – 15% of Vehicle On Road Cost.
Repayment: Up to a maximum period of 5 years.
Processing Charges: 1.00% of Limit sanctioned without any maximum cap.
Other Stipulation
- The Average Debt Service Coverage ratio should not be less than 1.50:1.
- Hypothecated Vehicle should be insured for full value with Tamilnad Mercantile Bank Clause
- Tamilnad Mercantile Bank’s hypothecation charge should be noted in the RC Book.
- Duplicate Key and RC Book copy should be obtained and kept along with the loan documents
Guarantee: Third Party Guarantee should be obtained if there is no collateral.
Documentation: Simple Documentation as per Bank Norms.
