To assist the transport operators (new entrants) and to create Employment Opportunities for the borrowers. Advance under the Scheme may be allowed for purchase of new vehicle(s) made by standard manufacturing concerns.

Advance will be allowed for purchase of one or more vehicle (s) after giving due consideration to merits and viability of the transport operator(s).

The vehicles will include the following to be used as public transport carrier for transport of goods and passengers.

For purchase of any power driven vehicle for commercial use like  Auto Rickshaw, Tempo, Taxi, Pickup van, Trucks, Buses of all size and capacities.

• Age: 21 to 55 years.
• All transport operators (new users) working individually or as Partnership Firms, with not more than 6 members and fulfilling the criteria to be classified as Micro or Small enterprise as per the definition of RBI from time to time and also covered under priority sector.
• All individual transport Operators/firms engaged in transportation business (for carrying passengers or goods on hire).
• The borrower (s) hold the necessary driving license or engage driver (s) possessing valid license to operate the type of vehicle for which credit is sought.
• The borrower (s) should have been granted a permit by an appropriate authority to ply vehicle (s) for passengers or goods traffic for hire.
• The borrower(s) should be well experienced and have the aptitude in the profession.
• Transport operators owning one or more trucks/buses are also eligible (upto maximum of 6 vehicles including proposed vehicle).
• However in case of proposals for more than one vehicle anticipated cash flow statement should also be taken into account.
• Partnership Firms should have been in existence for at least 2 years.
• The borrower should submit proof for permanent residential address and comply with KYC norms.

12.50% p.a subject to revision from time to time.

Loan maximum up to Rs 50 lakh (Term Loan + Working Capital) or maximum 6 vehicles per borrower (including existing loan outstanding) whichever is lower.

Margin:
For loans up to 5 lakhs: 15% of the Project Cost.
For loans above 5 lakhs: 25% of the Project Cost.

Repayment Period - Based on cash flow & DSCR, loan amount is repayable in a maximum of 5 years including moratorium period, can be extended up to 7 years in case of Heavy Commercial Vehicle.

EMI / NMI Ratio: 1.75

• KYC ( Aadhar , PAN card original & Xerox copies)
• KYC for residential proof
• Latest income related documents
• Valid Driving License
• Quotation of purchasing vehicle 
• SARFAESI compliant property for loan more than Rs 10.00 Lakh
• Any other relevant documents (if applicable for firms, companies and transport operators etc)

direct link to service charges

Primary Security: Vehicle purchased with the amount of the loan will remain hypothecated to the bank as security of the advance and shall be registered with the Motor Vehicles Authority in the joint names of the borrower and the bank as Hypothecator and the Hypothecatee respectively.

Collateral Security:
For loans upto Rs.10.00 lakh: No collateral security by way of guarantee or mortgage of immovable property if the loan is covered under Credit Guarantee Scheme of CGTMSE (provided the customer does not have any security to offer) .

For loans above Rs.10.00 lakh: collateral security equivalent to amount of advance by way of Equitable Mortgage of immovable properties (SARFAESI Compliant).