FOUR WHEELER TO WORKMEN EMPLOYEES-690

NF-546 Specimen Card.

NF-425 Application for Advances to Employees.

NF- 825 Agreement of Hypothecation of Vehicle of Employee

NF-681 Irrevocable Mandate for deduction from the Salary.

NF-894 Letter of Authority Addressed to the Bank from the Employee at the time of loan
sanction of loan

NF-803 Letter Evidence Execution of Documents.

NF-482 Certificate Of Loan Papers Obtained.

NF-967 Certificate of Compliance of term & conditions

NF-373 Particulars of Vehicle Hypothecated.This should be obtained onthe date on which

borrower actually recives the vehicle.

Appendix-10 Declaration to be given by Workmen/Officers for availing LHV for the subsequent
time.

Form 29 Transfer of ownership form duly signed.

Form 30 Application for intimation & transfer of ownership of the 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 RC.

E-STAMP 0.1% of loan Amount. Upto 10Lakhs

Purpose: For Purchase of Four -Wheeler for both New and pre-owned Vehicles.

Eligibility:All Workmen employees are eligible whose has completed 5 years of service and
whose basic is not less than 0f 15360/-. .Physically handicapped Workmen are eligible for purchase
of special motor car for physically handicapped persons.

Net Take Home (NTH): Not less than 10000/- or 25% of gross salary whichever is higher.(cir
325/2019)

Loan Quantum: For New Vehicle : 90% of total value of Vehicle which , inclusive of Invoice
value Life Tax, Registration Charges , Insurance premium and other charges. Or Maximum of
6 Lakhs.

Loan under this scheme can be considered for purchase of second hand / used vehicles also where
are not older than 5 Years. 80% of value as per approved valuation by the approved qualified
automobile enggineer Maximum of 4 Lakhs.

Rate of Interest (ROI): 7% Simple.

Sanctioning Authority: DM of concerned Circle Office.

Repayment: 180 Monthly Installments (120 Months for Principal & 60 Months towards Interest)

Other Conditions:

• Where the officer employee opts for a lesser period of repayment, repayment can be fixed as
per the request.

• However, at the time of retirement (including voluntary retirement), the loan can
becontinued at the option of the employee for a further period of 10 years (120 months)
subject to the conditions that the total repayment period shall not exceed 180 months or the
period opted by the officer.

• The above provision shall be applicable for existing loans also where repayment period of
200 months is fixed.

• Continuation of limits/liabilities under car loan may be for a period of 10 years from the date
of cessation of the service or the ex-employee ataining the age of 70 years whichever is
earlier. However, it should be within the maximum period permited under the scheme.

• The enhanced period for continuation of limits/liabilities from 5 years to 10 years shall also
be applicable to the existing accounts where continuation is already permitted for only 5
years.
• As hitherto, DGM of the Circle shall continue to be the authority to permit continuation of
the loan.

• Fresh loan can be considered subject to clearance of earlier loan. Employees are not
permitted to purchase 2 cars within their enttlement under car loan. Similar is the case in
respect of two-wheeler loan also.

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.

Circular : 479/2017 325/2019

Prepared By
Santosh (109350)