Car Loan Policy | TSCAB
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Loans, Savings

Car Loan Policy



The Bank formulated a scheme for financing individuals for purchase of non-commercial vehicles like Cars for personal use.

2 Eligibility

1. Individual between 21-65 years of age.
2. Regular employee of State/ Central Govt., Public Sector Undertaking, Private Company or a reputed establishment.
3. Professionals, self-employed businessmen, proprietary/partnership firms who are income tax assesses.
Gross Annual Income:-
For Employees of State and Central Government, Public Sector Undertakings. Gross Annual Income of applicant and/or co-applicant if any, together should be Rs. 2,50,000/- p.a. and above.
For salaried customers other than above mentioned categories: Gross Annual Income of applicant and/or co-applicant if any, together should be Rs.4,00,000/- p.a. and above.
Self-employed, professionals and proprietary/partnership firms:
Net Profit or Gross Taxable Income should be more than Rs.4,00,000/- p.a. as per ITR after adding back depreciation and repayment of all existing loans.



For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.


Amount of Loan

a) A maximum loan amount of 48 times of Net Monthly Income or 4 times of Net Annual Income or Maximum loan amount of Rs.25.00 lakhs whichever is less. Excluding of the 15% margin amount.
b) Loan shall be sanctioned on road price (cost of vehicle + registration charges + insurance + road tax). Any additional cost for fancy numbers shall not be financed by Bank.


Period of Loan

Maximum repayment period 6 years (72 months) with equated monthly installments.


Rate of Interest

a) The interest will be charged at 9.95% p.a. on monthly compounding basis.
b) In respect of overdue installments, 2% p.a. penal interest will be charged over and above the normal rate.



a) Borrower undertakes to get hypothecation in favour of the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle.
b) Bank will verify the original RC book to note down the charges in favour of the Bank and CIBIL score of the Borrower should be recorded and minimum score should be 700. The Managing Director may relax CIBIL score on case to case basis depending upon merits of the case.
c) One surety of good means (IT assesse).


Associate Membership

The borrower and sureties should be admitted as Associate Members/ Nominal Members on remittance of Rs. 100/- towards nominal share capital and Rs. 10/- towards admission fee each.



Verification of applications by the CLPC, Head Office.



1) Statement of Bank account of the borrower and sureties for last one year.
2) 2 Passport size photographs.
3) KYC particulars compliance.
4) A copy of passport/ voter ID/ PAN card/ Aadhar card/ employee id card.
5) Proof of residence.
6) Latest 3 months salary slips showing all deductions.
7) I.T. Returns: 3 years for professional/ self-employed/ businessmen duly accepted by the ITO wherever applicable.
8) Proof of official address for non-salaried individuals.
The income of the borrower should be sufficient to pay the loan installments (only 2/3rd of the net income shall be taken for this purpose). However, the income of the surety should also be sufficient to pay the installments in case of default by the borrower.


Fees and Charges

0.5% of the loan amount subject to a maximum of Rs.5,000/- + applicable taxes.



The loanee should meet 15% of the cost of vehicle as per invoice price (which includes vehicle registration charges, insurance, one-time road tax and accessories) and this amount should be deposited with the Bank before release of the loan so as to enable the Bank to issue bankers’ cheque for the full cost in favour of the dealer.



Vehicle should be insured. Insurance policy should be renewed every year and policy copy to be submitted to the Bank.


Sanctioning Authority

a)Upto Rs.10.00 lakhs: DGM(CLPC)
b)Above Rs. 10.00 lakhs: GM(Bkg)


Operational Aspects

A. Procedure:
1) The application of Car Loan should be collected from prospective borrower in printed form and the Branch Manager should forward the same to Asst. General Manager (CLPC), Head Office along with relevant documents/information, recommending the proposal.
2) Application- All columns are to be filled in properly by the applicant.
3) The borrower should remit the margin money and the Branch Manager should issue Bankers’ Cheque in favour of the dealer for the total cost of the vehicle (margin money + loan amount) with a letter requesting the dealer to note the hypothecation in favour of the Bank.
4) Hypothecation: The vehicle should be hypothecated in favour of the Branch and registered with RTA and a copy of the relative RC book should be lodged with the Branch.
5) Inspection: It shall be open to the Branch to inspect the vehicle without giving any prior notice to the Borrower.