HIRE PURCHASE IN CANARA BANK

Brundha Rajam Deepika S R Divya C B Jaya Priya Sathya A N Vinodhini C

Company Profile
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Name of the Company Canara Bank Year of establishment 1906 Founder - Shri Ammembal Subba Rao Pai Head office - Bangalore No of Branches- 3432 No of ATM - 2623 , covering 899 centres Products & Services- Personal Banking, Corporate Banking, NRI Banking and Priority & SME Credit Services.

Canara Bank - Vadavalli Branch

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Establishment - September, 2008 Address Canara bank, Vadavalli branch, Coimbatore -46 No of employees 11 Branch Manager Mr. M. Jeevan Canara mobile officer Mr. S. Ravi Kumar Daily Turnover 20 lakhs Loan products Home loans, Education loans, Canara mobile

Hire Purchase
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A method of buying goods through making installment payments overtime.

During the re-payment period the ownership of the good does not pass to the buyer.

Only after the full payment of loan the ownership will transfer to the buyer.

TwoTwo-Wheelers
Purpose
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Financing, the purchase of brand new two wheelers.

Eligibility
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All individuals (including professionals and salaried class) who are credit-worthy and respectable.

Salaried individuals should have a minimum monthly net take home salary of 25% of their gross salary or Rs.2000/- after meeting the loan instalment for the proposed loan, whichever is more.

In respect to the salaried class, an irrevocable mandate by the borrower to deduct the instalment amount from the salary payable to him by the employer for onward remittance to the company promptly should be registered with the latter. In the alternative, the borrowers salary should be credited to his account in the Canara bank.

Professionals and other salaried persons should have a minimum annual income of Rs.50, 000/- to be evidenced by Income Tax Assessment order / income tax return.

Where the borrower is an existing customer, the branch/ sanctioning authority should satisfy that the account is well operated during the last 6 months.

There is no bar / restrictions for financing a new customer who is not already banking with Canara Bank. But, the proposed borrower should be properly introduced to the bank and satisfy other eligibility norms / comply with KYC guidelines.

Quantum of Loan
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Salaried Persons - Loan may be granted up to 80% of the value inclusive of invoice value, tax, registration charges, insurance premium and other accessories or 15 months of net salary, whichever is less.

Professionals and other non-salaried individuals - Loan may be granted up to 80% of the total value inclusive of invoice value, tax, registration charges, insurance premium and other accessories or to the extent to 50% of their annual net income in the immediate previous year, whichever is less.

Sanctioning powers: Branches/offices may permit loans under this scheme within their delegated powers as per Delegation of Power.

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Rate of interest: Fixed rate of interest will be charged at the rate prevailing on the date of disbursement of the respective loan, as

advised by HO from time to time.

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Diarising and follow- up for reset of interest is mandatory. Based on the bank the Interest is calculated on a monthly reducing balance or an annual reducing balance basis.

Monthly Reducing Balance

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In the case of monthly reducing balance method, the principal gets reduced at the end of every month and the interest is calculated on the outstanding principal at the end of the month.

Annual Reducing Balance

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In the case of annual reducing balance method, the principal gets reduced at the end of the year and the interest is calculated on the outstanding principal at the end of the year.

Repayment
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Repayment period not exceeding 4years. Payment based on EMI on EMI chart. Period may extend to 5yrs with permission DM and AGM for small amount Chief manager for Huge amount Present central hub

Four wheeler
Who can avail of Car Loans?
y

Salaried individuals in the age group of 21 to 60 years (at the end of the tenure)

Self-employed individuals in the age group of 21 to 65 years (at the end of the tenure)

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Partnership Firms Public & Private Ltd. companies

HUFs and Trusts are not eligible

Salaried class- Minimum gross salary of not less thanRs.0.75 lakhs p.a. with the net take home salary of 40% of gross salary at the time of applying for loan

Other than salaried individuals -Should have a minimum annual income of Rs.0.75 lakhs and to be evidenced by ITAO.

Quantum of loan or margin

y

For new vehicles -Loan may be granted up to 90% of the total value inclusive of invoice value, life tax, registration charges, insurance premium, etc

For pre owned vehicles - Loan under this scheme can be considered for purchase of second hand vehicles which are not older than 5 years. 75% of the value of vehicle as appraised or assessed by an automobile engineer

Time to Process Loan

7 days Chevrolet, FIAT, Ford, GENERAL MOTORS INDIA, HINDUSTAN MOTORS, Honda, Hyundai,

Preferred Manufacturers

Mahindra, Maruti, MercedesBenz, Mitsubishi, Nissan, Reva, SAN Engineering, Skoda, Tata Motors, Toyota

Interest Rates
PERIOD FIRST 12 MONTHS NEXT 24 MONTHS ABOVE 36 MONTHS UPTO 60 MONTHS ABOVE 60 MONTHS INTEREST RATE 8.50% (FX) 9.50% (FX) 10.00% (FL)

10.50% (FL)

Repayment
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Repayment period not exceeding 72 months from the date of grant of the loan may be permitted.

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Repayment shall be in the form of EMI. Repayment period may be enhanced to 7 years.

Processing Charges:
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0.1% on the loan amount with a minimum of Rs.250/- and maximum of Rs.500/-.

Miscellaneous
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The entire cost of the vehicle is to be directly remitted to the dealer against their invoice.

Before remittance the bank has to verify whether the dealer is an authorized dealer.

The dealer should be instructed to receive an acknowledgment from the borrower for having received vehicle in good condition.

The dealer should also be instructed to get banks HP endorsement while registering vehicle and should send RC to the branch.

Documentation
Following document to be obtained at the time of sanction:

Application form NF 965 Rating sheet cum credit report NF 990 Hypothecation agreement for Canara mobile NF 928 Letter evidencing execution of documents should duly be

signed by the officials NF 803

Original invoice Stamped receipt from the seller for the amount received.

Form 29, 20, 30, 35 with respect to RTO should be duly registered and signed.

Comprehensive insurance policy assigned in the name of bank and for risk of Strike, Riot and Civil commotion(SRCC).

In case of partnership firm, loan papers should be signed by all the partners.

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Vehicle should be verified physically within a week. Wherever third party guarantee is stipulated respective Guarantee letter should be produced.

PrePre-owned vehicle
The following set of documents or loan papers should be obtained.
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Valuation certificate from an approved automobile engineer. Stamped receipt from the vendor. Original RC book to be obtained. If the vehicle is to be registered with a different RTA(Roads And Transport Authority), a no objection certificate should be obtained.