Hypothecation Loan

Hypothecation Loan

Our Hypothecation Loan is designed to help customers purchase new or old vehicles for personal or commercial use. Under this scheme, the vehicle purchased will be hypothecated to the bank as security until the loan is fully repaid. The bank offers simple documentation, quick processing and convenient repayment options to make vehicle purchase easy and affordable.

purpose

Purpose

For purchase of new or old two wheelers, four wheelers and heavy vehicles for personal or commercial use.

eligibility

Eligibility

Members, salaried persons, business persons and individuals having regular income acceptable to the bank.

loan-amount

Loan Amount

Loan amount will be sanctioned based on vehicle cost and repayment capacity as per bank rules.

period

Maximum Period

Repayment period will be fixed by the bank depending on the type of vehicle and loan scheme.

security

Security

The vehicle financed under the loan scheme shall remain hypothecated in favour of the bank until full repayment of the loan amount. In the case of Heavy Vehicle loans, an immovable property belonging to the borrower will be obtained as additional collateral security.
interest

Interest Rate

Commercial Vehicles
Old – 13.00%
New – 12.00%

Personal / Private Vehicles
Old – 13.00%
New – 12.00%

Note: “The sanctioned loan amount and interest rate are subject to terms and conditions.”