Document Required for Car Loans for Used Vehicles

Stage wise Instructions:

• At the time of application:
  • Proforma Invoive
  • Copy of Seller's RC Book
  • Copy of Seller's Motor Insurance
• At the time of Disbursement:
  • Sale Agreement between Dealer and Seller, may or may not be stamped OR Undertaking from Seller that he has sold the vehicle, received sale consideration and has no claim whatsoever.
  • Undertaking from the Dealer to the financier instead of stamped Indemnity.
  • Hypothecation clearance letter from Bank along with copies of HPTER (Form 35) wherever applicable.
  • Correspondence with the Insurance Company regarding change in insured's name and financier.

Term & Condition

• For loans above Rs.5 lacs, scoring from 2 CICs will be required like in car loan schemes
• Margin 20%
• Income Invoice price like Maruti's True Value, Hyundai's H-Promise, Honda's Auto Terrace, Tata's Assured, Mahindra's First Choice and other OEM's cars IDV.
• Penal Interest : 2% p.m. (over and above the applicable interest rate) on the overdue amount for the period of default.