Purpose: This scheme provides over draft facility for the customers of the bank. …
Purpose: This scheme provides over draft facility for the customers of the bank.
Eligibility: Businessmen, individuals doing business, contractorships with not less than 3 years experience, are eligible for this loan. The applicant should be an income tax assessee for at least the last 3 years.
Quantum of Loan: The quantum of the loan is decided based on the credibility of the applicant.
Margin: There is a margin of 25% for this loan.
Rate of Interest: In case of business, transport operators, industrial advances, swarojgar yojna credit card, trading, etc. the rate of interest is PLR + 2 % per annum. In case of small and medium enterprises the rate of interest is 0.75%, PLR-2% and PLR+2% for loans of up to Rs. 50,000/- , Rs. 50,000/- to Rs. 5 lakh and Rs. 5 lakh to Rs. 10 lakh categories respectively.
Repayment: Repayment of loan has to be done within a period of 5 to 7 years.
Security: Hypothecation of the stocks is taken as the primary security. Collateral security will be required as per the norms of the bank.
Other Features: There are nominal processing charges for the loan as per the norms of the bank.
When you approach for any auto loan nowadays, you need to shop around for the right loan with benefits that can help you. Many auto loan financiers provide promotional offers, like loans with low interest rates. Any loan with low interest rate means lower monthly installments and hence lower costs.
Many institutions provide low interest auto loans to extend the loan facility to people from all classes. What stands important here is how to get a low interest deal on an auto loan? You must also check for the financiers prime lending rate. PLRs are determined on the basis of many factors. The financier will have a difference in the PLR and the lending rate to the customer. You benefit if the lending rate is closer to the PLR.
Also the choice of a car greatly matters in determining the interest rates. If its a used car, the condition of the car is adjudged and the interest rate will tend to be higher, as compared to that of a new car or a car in good condition. Another tip would be to get your loan financed through a bank of financial institution. If your auto dealer is enticing you with a so-called great deal through his dealership, beware of the loopholes there.
Read minutely through the lines of such a deal, before you end up taking one. Your credit profile also plays the protagonist in clinching a low interest auto loan for you. Better your profile, lesser is the interest rate that you can bargain on your loan. There are ample of online loan financiers to check for before you just walk into a car showroom.
Try and figure out who can get you the lowest rate deal. Be sure you know the market rates and the current market conditions even before you let any smart sales guy speak to you for the loan. You can only adjudge if the information he is providing is correct, when you thoroughly know the same. Make the use of Internet for your best. You have plenty of websites out there, which provide information on the auto loan interest rates on a daily basis. You can check out the charts as well for yourself for finding out the best rates.
Also, you can submit your request online to these sites, which in turn pass on this information to lending institutions. Also, they provide you 3 best quotes and you who will decide on the best quote. Remember that you have to shop around extensively before you hard lock on the lowest rate deal. Interest rates you get greatly depend on your knowledge, research and your credit profile.