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CANARA VEHICLE LOAN ----- (603)-FOUR WHEELER

NF-546 SPECIMEN CARD

NF-965 LOAN APPLICATION FORM.

NF-928 CANMOBILE LOAN AGREEMENT.

NF-990 RATING SHEET FOR RETAIL LENDING SCHEME.

NF-967 CERTIFICATE OF COMPLIANCE OF TERM & CONDITION.

NF-373 PARTICULARS OF VEHICLE HYPOTHECATED. THIS SHOULD BE


OBTAINED ON THE DATE ON WHICH THE BORROWER ACTUALLY
RECEIVES THE VEHICLE

NF-803 LETTER EVIDENCING EXECUTION OF DOCUMENTS.

NF-370 GUARANTEE LETTER.

NF-371 GUARANTEE COVERING LETTER.

FORM -29 TRANSFER OF OWNERSHIP FORM DULY SIGNED.

FORM -30 APPLICATIONS FOR INTIMATION & TRANSFER OF OWNERSHIP OF


MOTOR VEHICLE.

FORM-35 NOTICE OF TERMINATION OF AGREEMENT OF HIRE PURCHASE.

FORM-20 APPLICATION IN THE PRESCRIBED FORM SIGNED BY THE


BORROWER TO THE RTO TO REGISTER THE VEHICLE IN THE
BORROWER NAME .OUR CHARGE IS TO BE NOTED IN THE RC.

FORM-12A TAX CARD

E-STAMP 0.1% OF LOAN AMOUNT MINMUM 200/-(UPTO 10LAKHS)


0.2% OF LOAN AMOUNT MINMUM 200/-(ABOVE 10LAKHS)

E-STAMP FOR GUARANTOR 200/-(STANDARED).

(From 29,30,35 we have to take blank and undated in dublicate(Mns 2 copies)

Credit Information Report (CIR):(CIR 611/2019)

Upto 5 Lakhs 1CIR


Above 5 Lakhs 2 CIR

Purpose: For Purchase of Four -Wheeler for both New and pre-owned Vehicles.
Eligibility: All Individuals borrowers /Professionals/Reputed Firms/Companies.HUF
is not eligible for Canara Vehicle Loan.

Sanction Memorandum: Containg all the “Most Important Term & Conditions”(as
per Cir 99/2015 to be modified Suitably) to be prepared in dublicate. The term and
conditions should be properly explained to the borrowerand signature to be obtained
from the borrower foe having understood the same and being acceptable to them. The
copy signed by the borrower should be retained at branch and other copy be handed
over to the borrower for their records and references.

Other Guidelines for Canara Vehicle Loan:


• Irrevocable Mandate as per Anneexure IV of HO Cir 71/2017 is to be duly
registered with salary disbursing authority or ECS/PDCs wherever appicable.
• Post dated cheques (PDCs/ECS) mandates are to be compulsorily obtained
wherever mandatory salary tie up is waived.
• The post dated cheques/ ECS mandates accepted are of the salary credit
account only.
• During the currency of existing loan, Second loan to the same borrower , can
be sanctioned by NHAat RAH/RO/Circle
• Circle Head CAC is empowered to sanction Third and subsequent vehicle loan
to individuals,even during the currency of earlier loans, provided there are no
overdues in the existing vehicle loan accounts and can sanction loan for more
than 2 vehicles to Corporate(without any upper ceilling on the number of
vehicles) under line of credit , provided there are no overdues in the existing
canara vehicle loan accounts(363/2016)

Documents Required:

Salaried :
• Last 6 Months Salary Certificate or form 16 /ITR
• Self attested KYC
• Bank account statement for last 1 year of salary account.
• Proof of asset and liabilites of borrower /joint borrower/Guarantor
• borrower should have a CASA account with our Bank.
• 2-Photos of borrower/ co-borrower/Guarantor.

Non Salarired:
• Last 3 years IT Returns
• Proof of business i.e Licence given under shop and establishment act etc
• copies of computation of income,balance sheet and profit and loss account for
the latest 3 consecutive years are required to be obtained.
• Self attested KYC
• Bank account statement for last 1 year of business account or any other
account should be obtained.
• Proof of asset and liabilites of borrower /joint borrower/Guarantor
• borrower should have a CASA account with our Bank
• 2-Photos of borrower/ co-borrower/Guarantor.

Firm /Companies: While considering loans under this scheme in respect of firms /
companies the sanctioning authority should be satisfied about their networth repaying
capacity etc.

In case of loan to partnership firm loan papers should be signed by all the partners
and loan is to be granted in the name of the firm only.

Where road transport authorities (RTA) do not register the vehicle in the name of the
partnership firm.A letter is to be obtained as per Annexure-10 of the BPC- Manual of
instruction on loans against hypothecation of vehicle.

In case of vehicle loan is given to the companies a charge has to be registered with
registrar of comapany without fail.

NTH:
• Salary/ income after taking into consideration the insallement of proposed loan
should not be less than 25% or 12000/- whichever is higher.

• CGM/GM-CO-CAC and above authorities are empowered to permit relaxation


in NTH upto 20% or 12000/- whichever is higher on merits of individuals
cases very selectively.

• Wherever salry tie-up is not available recovery mechanisum of ECS debit


mandate of salary should be ensured.

In order to determine the eligiblity of salaried/ non salaried / firm/ companies the
sanctioning authority can also take into account any other income declared by the
borrower like rental income / income from investment/ income of spouse subject to
production of documentary evidence.

Conveyance can be added to salary subject to production of documentary evidence


for salary class.
Income Creteria:

Salaried Min of 3 Lakhs


Other than Salarired Minimum of 3 Lakhs PA (Gross annual
income 3 Lakhs Gross average annual
income of last 3 years not less than 2.5
Lakhs
Loan Quantum & Margin (Cir 384/2019)

For New Vehicle : In respect of new vehicle only following margin on total value,
inclusive og Invoice value Life Tax, Registration Charges , Insurance premium and
other charges.

Margin for Exsiting Margin for New Customer Loan Amount


Customer (satisfactory
dealing for a period of
atleast one year)
10.00% 20.00% Upto 10Lakhs
15.00% 25.00% Above 10 Lakhs & upto
25Lakhs
20.00% 30.00% Above 25 Lakhs
Vehicle which are not older than 1 Month from the date of their purchase / first
registration can be treated as new vehicle for the purpose of financing our borrower
should be first transferee

Pre-Owned Vehicles:

Loan under this scheme can be considered for purchase of second hand / used
vehicles also where are not older than 5 Years.
• 75% of value of vehicle as appraised / assessed by an automobile engineer.
• 75% of the price agreed to between the seller & buyer.
• 75% of the original purchase price of the vehicle.
• Maximum Loan amount is 15 Lakhs

Repayment:

New <=84 EMIs


Second Hand <=60 EMIs

• Repayment to the loan to commence from the month following the


disbursment.
• Branches to effectively moniotor these loan accounts for ensuring prompt
repayment.
• As in the case of all LHV accounts branches should initiate recovery action if
3-4 consecutive monthly installements of interest debited is not serviced
including seizure and disposal of seized vehicle.
• However before seizure of vehicle proper place to safely park them should be
ensured also once a vehicle is seized firm steps should be taken for disposal of
the same.
• Release of the seized vehicle again to the borrower may be permitted only if
atleast 50% of overdues are paid any deviation from this should be permitted
only by the circle office.

Security:

• Hypothecation of the vehicle purchased


• Suitable Guarantor for the amount may be insisted upon. However sanctioning
authority at his discreation may consider waiver of the same on case to case
basis on merits.

Documents for Old Vehicles:

• All the formats/ formalities required to be obtained complied with at the time
of granting agianst brand new vehicles are applicable for loans against used
vehicles also.
• In addition following set of loan papers / documents should be obtained
irrespective of the loan amount.
• Valuation Certificate from an approved Automobile Enginner as per LHV
Manual. Should clearly specify the probable future life of the second hand
vehicle to be purchased and repayment period is to be restricted up to the
future specified life of pre owned vehicle or as per scheme whichever is less.
• Stamped receipt from the vendor.
• Original RC Book/ Smart Card /Tax card in the name of the seller should be
obtained.
• Form No 34 applicable for noting Bank's charge in RC
• Fitness certificate issued by RTA in form 38
• In the vehicle is to be registered with different RTA a no objection certificate
form such transferor RTA should be obtained.
• If the vehicle is subject to a lien/ charge of the financer the same should be got
cleared/ vacated.
• The insurance should be got transferred / endorsed in favour of the buyer and
Bank's interest should be got noted there on.
• Original RC/Smart card to be verified within a fourtnight of disbursment and a
duly attested copy of RC book / Smart card with bank lien noted there on is to
be kept with the loan paper.
• Original B register Extract issued by RTO authorities containg full details of
the vehicle.
• Name of the Owner
• Registeration Number
• Model
• Engine & Chasis Number
• HP details
• Tax paid particulars
• NOC given if any insurance details etc should be obtained along with
appication for used vehicles.
• Branches shall cross verify the copy of RC book submitted by the prospective
borrower with the B Extract to ensure the genuineness of the documents of the
vehicle.

Purchase of second vehicle during the pendency of the existing loan:

• Sanctioning a second loan to the same borrower during the curency of the
existing loan can be considered subject to the branch being fully satisfied about
the credit worthiness and repayment capacity of the borrower.
• Such proposal being reffered to the next higher authority at the concerned
RAH/RO/CO at the case may be for sanction.

Purchase of more than two Vehicle:

• credit approval committee DGM-CO-CAC and GM-CO-CAC are empowered


as under to sanction third and subsequent vehicle loan scheme to individuals
under canara vehicle loan scheme even during the currency of earlier provided
there are no overdues in the existing loan account.
• To sanction loan for more than two vehicles to corporates(without any upper
celling on the number of vehicles) under line of credit provided there are no
overdues in the existing loan account.

Reporting Disbursment /performance/overdues/ should be reported in PSR-71 and


SWL statement.

Rate Of Iterest(ROI):(501/2019):

Risk Women Men


CS1 RLLR + 0.4 RLLR + 0.45
CS2 RLLR + 0.55 RLLR + 0.60
CS3 RLLR + 0.95 RLLR + 1.00
CS4 RLLR + 2.95 RLLR + 3.00
Firms/ Companies RLLR +0.60
If Credit history is not available (unrated)(-1) than the loans are to be treated as CS2
loans and corresponsing RIO to be appied.

After disbursment we have to collect below given documents within Fortnight(Two


Weeks).
• Original Invoice
• Smart Card
• Key
• Insurance
• B-Extract
• Vehicle should be verified physically.
• Stamped receipt from the seller for the amount received.

Processing Charges: 0.25% of Loan amount Min 1000/- and Max 5000/-

Inspection Charges:

• upto 10 Lakhs 200/- Per Inspection per borrower with a Maximum of 600/- per
year.
• Above 10 Lakhs 300/- Per Inspection per borrower or actual expenses incurred
whichever is higher

Reporting : Credit reports (NB-179) should be submitted to reviewing authority in


time and reviewing authority has to review has review the same within a time frame
and their observations conveyed to the branch for ractification and compliance.

Operational Guidlines-Payment of service charges for sourcing Canara vehicle


loan Applications:

• It is permitted to pay service charges or 1.30% of loan amount to car dealrs


with a Maximum cap of Rs.50000/- anf Rs 1500/- to dealers sales executive
per laon for reffering car loan to our bank. For sanctioning proposals.

• It shall be ensured that the service charges are paid only for business which is
sourced by the dealers/dealer's executives and not for walk-in proposals.

• Claim of automobile dealers should be processed and sent to crcle office on a


monthly basis to enable them to realse the payment without any dealy.

• One copy of claim format as per the appendix -89 to be retained with loan
paper.
DELEGATION OF POWERS
Sanctioning Authority Quantum of loan

1) Branch Head of Small Branch 5LAKHS

2) Branch Head of Medium Branch 10LAKHS

3) Branch Head of Large Branch 20LAKHS


4) Chief Manager of VLB\ELB\DM-RO-CAC 40LAKHS

5) AGM of ELB 100LAKHS

6) AGM-RO-CAC\AGM-CO-CAC 100LAKHS

7) DGM-RO-CAC 200LAKHS

8) DGM-CO-CAC 400LAKHS

9) CGM\GM-CO-CAC 500LAKHS

10) CGM\GM\-HO-CAC > UPTO 1000LAKHS

Branches having NPA below 2% under Canara vehicle loans shall process sanction
disburse and follow up loans under Canara vehicle loan scheme up to thier delegated
poers through they are attached to RAH.

In respect to branches having NPA level of 2% and more Circle head may selectivy
permit such branches to exercise power for sanctioning loans or proposal may be put
before next higher authority.

Classification:This is loan treated as clean loan under Non -Priority Sector.

Scheme Code: 70710

Circulars : 268/2014, 363/2016 10/2014 ,425/2014 ,99/2015,71/2017 384/2019,


501/2019 and 611/2019

Prepared BY
SANTOSH(109350)