Canara Vehicle to Agriculturists
- Purchase of Four wheelers (LMVs) of all types i.e., both Brand new & Pre-owned, by Agriculturists whose major annual income is from Agriculture.
- All agriculturists owning and cultivating agricultural lands of more than 5 acres of irrigated lands/10 acres of dry lands in their name/s with 2 years of satisfactory dealing with us. In case of agriculturists engaged in Dairy farming, Poultry farming, Plantation Crops and Horticultural produce, the minimum land holding requirement does not apply, instead they should have minimum gross annual income is Rs.4.00 lacs.
- In case of loans upto Rs. 10 Lacs, though it is desirable to submit latest ITR where agricultural income is also declared for ascertaining the gross annual income, in case of non-availability of ITR, Income certificate issued by the Tahsildar/Mandal Revenue Officer/District Revenue Authorities or any competent authority (Permitted by the State Govt. to issue such certificates) may be accepted as proof of income for reckoning the eligibility/NTH.
- In case of loans above Rs. 10 Lacs, ITR where agricultural income is also declared is compulsory. Net Take Home (NTH) should be 40% of gross annual income at the time of applying for loan (after meeting the installment for the proposed loan under this scheme) with a minimum of Rs. 1.50 lacs/-p.a. Where borrower is having non-agricultural income of regular nature (either through salary, business or profession), the same may also be reckoned for determining the repayment capacity. However, adding the non-agricultural income shall be subject to the income being declared in ITAR or subject to production of documentary evidence acceptable to the Bank. In case, any other family member is also having Agricultural income and intends to join as Co-Borrower, the same can be permitted for arriving at Annual Income, Repayment Capacity.
In case of New Vehicle following margin on on- the- Road price inclusive of invoice value, life tax, registration charges, insurance premium and other accessories. For Loan upto Rs. 10.00 Lacs - 10% For Loans above Rs.10.00 Lacs & upto Rs.25.00 Lacs --- 15% For Loans above Rs. 25.00 Lacs -- 20%
In case of Old Vehicle, vehicle should not be more than 5 years old & quantum of finance to be granted will be the least of the following:
- 75% of the value of vehicle as appraised / assessed by an automobile engineer.
- 75% of the price agreed to between the seller and the buyer.
- 75% of the original purchase price of the vehicle
- Rs.15.00 lacs (after maintaining a minimum margin of 25%)
Maximum quantum calculated as per above calculations shall not exceed One year's annual income of the Borrower/Borrowers.
Rate of Interest
- In case of new vehicle-Maximum 84 months.
- In case of second hand vehicles, the repayment period is restricted to future life of vehicle as specified by a qualified automobile Engineer or 60 months whichever is less.
- The periodicity of repayment i.e., monthly /quarterly/ half yearly / yearly should be fixed depending upon the activity carried on by the borrower / income stream of the borrower / cropping pattern etc.
- Hypothecation of the vehicle to be purchased. Suitable guarantor good for the amount may be insisted upon.
- 0.25% on the loan amount with a minimum of Rs.1000/- and maximum of Rs.5000/-.
- However, now as a Retail Festival Offer, Processing Charges are waived for Canara Vehicle Loans sanctioned up to 31.03.2018 and disbursed on or before 30.04.2018.