AROHAN

(A Series of Learning)

(Auto Loan: Products & Features)

By: Neeraj Kumar Sahu

(For Internal Circulation Only)

 Chapter – 18 Auto Loan: Products & Features

Sl. No. Questions Answers

Maximum age for Sanction of Car Loan is____. In case of Joint accounts, repayment
01 21-70 Years
period will be counted on the basis of applicant with higher age.
02 Maximum age for repayment of Car Loan is____ 75 Years
03 Repayment period under: SBI Car Loan Scheme is ___ Min-3 Years, Max-7 Years
Rs. 20 Lakhs
04 Opinion Reports/ Assets & Liabilities Statements to be waived for all loans up to
if CIC score is 721 and above
Minimum Income (Salaried): Net Annual Income of applicant and/or co-applicant, if any, together
05 Rs. 3.00 lacs
should be Rs. ____p.a. and above.
Minimum Income ((Self-employed, Professionals and Businessmen): Net Profit or Gross Taxable
06 income of Rs. ____ p.a. as per ITRs. Income from other sources like Bank Interest/Dividend/Rent Rs.3.00 lacs
can be added.
Minimum Income (Agriculturist): Net annual income of applicant and/or co applicant together to
be Rs. _____.The Net Annual Income will be arrived at based on the nature of the activity, land Rs. 4.00 Lacs
07 holding, cropping pattern, yield etc.
In case of agriculturists, other than the agricultural income, the borrower should have additional income stream
sufficient to take care of monthly installments. NMI of applicant(s) should be at least 2 times of EMI.
08 Minimum Loan amount under Auto Loan scheme is Rs. _____ Lacs Rs. 1.00 Lakh
Salaried = 48 X Net Monthly Income or (4 X Net Annual Income)
19 Maximum Car Loan Self-Employed / Professional / Businessman: 4 X Net Profit or Gross Taxable Income
Agriculturist: 3 X Net Annual Income
Project Cost (On-road price) include ex-showroom price, road taxes, insurance. The cost of accessories, extended
10 warranty and total maintenance should not be included in the project cost. In no case the Loan amount should go
beyond 100% of Ex-showroom Price of the Vehicle.
11 Now only Maximum ___ car loans can be sanctioned to same individual for personal use. 03 (Three)
12 EMI / NMI Ratio: Depending on Net Annual Income EMI/NMI Ratio will be as under:
Net Annual Income: Up to Rs.5 Lakhs Maximum EMI/NMI: 50%
Net Annual Income: Above Rs. 5 Lakhs to Rs. 10 Lakhs Maximum EMI/NMI: 60%
Net Annual Income: Above Rs.10 Lakhs Maximum EMI/NMI: 65%
Others: 85% of on-road price (Max. 100% of ex-showroom price)
13 LTV for Normal Car Loan
CSP Customer: 90% of on-road price (Max. 100% of ex-showroom price)
Form-16/ITR is Waived for our Salary Package customers who are maintaining their salary account with the Bank
14
for minimum 12 months.
Statement of Bank Account (For six months): For our Salary Package customers = Submission of Bank Account
Statement is waived for our Salary Package customers who are maintaining Salary account with us. Branch staff will
15
download the same from the CBS, analyze and kept with Documents for Inspection & audit and for verification by
Senior Official during visit to branches.
Place of availing Loan:
16 Other Customers: Permanent Place of residence/ Place of Posting.
DSP/PMSP/ICGSP: Permanent Place of residence/Place of Posting/Salary account maintaining branch.
New Car loan and
17 Flexi Pay option has been introduced in Auto Loan under ____ product for all customers.
NRI Car loan
Repayment Options & Frequency available under Flexi Pay option are as under:
 Tenure <= 36 Months: First 6 months EMI to be 50% of Regular EMI applicable
18
 Tenure <= 60 Months: First 6 months EMI to be 50% of Regular EMI applicable & next 6 months
75% of Regular EMI applicable
The Flexi EMI schedule will be calculated and generated considering the lesser EMI being paid during the Flexi Pay
option period.
Delegation of Financial powers in case of Auto Loan Non-Hub Spoke/linked to RACC Branches are as under:
19
SMGS-IV – 15 Lakhs, MMGS-III – 10 Lakhs, MMGS-II – 7.50 Lakhs and JMGS-I – NIL
20 YONO applied car loan consist of _____ digit reference No. viz (CLY 280918144136) 15 (Fifteen)
The person whose income is included will join as a co-borrower. The maximum number of
21 2 (Two)
applicants should be restricted to ____.
Car Loan Scheme except NRI Car Loan: Co-applicant can be Parent, Spouse, Son, unmarried Daughter, Brother, or
22
unmarried Sister.

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Sl. No. Questions Answers
23 TAT scheduled for receipt of application and sanction/disbursal of the loan is ____ days. 2 Days
The maximum cost of accessories, extended warranty and total maintenance should not exceed 5%
24 Rs. 50,000/-
of the ex-showroom cost of the vehicle or Rs. ___ whichever is lower.
Car Loan Overdraft, Take Over & Reimbursement of Cars Purchased Out of Owned Fund
25 Scheme Discontinued
(NBG/PBU/AL-AUTOLOAN/21/2018–19 dated 21.08.2018).
26 SBI Car Loan Lite (Discontinued vide Circular Sl. No. 320/2021-22 Dated 29.07.2021
27 Penal interest on irregular auto loan should not be charged for loans up to ___ Rs. 25,000/-.
For irregular auto Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for
28 a period of one month , then penal interest would be charged @__% p.a.(over and above the 2%
applicable interest rate) on the overdue Amount for the period of default.
Foreclosure charges @ ______% + GST on theo-balance to be levied only if closed within 1 year from
29 2% + GST
the disbursement of loan.
Pre-payment penalty @ ______% + GST to be levied quarterly on the prepaid amount if prepaid
30 Now NIL
within 2 years from the date of disbursement.
Processing fee will be recovered on the loan amount upfront @ ____% of the Loan
31 0.25% of Loan amount
Amount; (subject to Min- 750 + GST, Max- 7500/- + GST.) (Waived upto 31.01.2023.)
A Dealer can be allowed to map max up to ____ branches, with incumbency of Scale –III
32 3 Branches
& above and all such branches will be allowed to give pay-out to the mapped dealers.
Govt Salary Package account with us: 650
33 Minimum CIC / CIBIL CV Score:
Corporate Salary Package and others: 700
34 Where, there is no credit history i.e. New to Credit, revised NTC CIBIL CV Score 151 to 200 : Clear Sanction
If Revised New to Credit (NTC) CIBIL CV Score is 101-150, Deviation Structure as given below.
 Customer should have bank account for more than 12 months.
 Monthly single credit of Rs.25000/- in the account other than system credit for last 12 months and Income Tax
returns are electronically filed. Status of acknowledgement receipt to be verified (ITR – V) online.
35
 Verification of the business / profession continuity is done through online verification of TAN/TIN/GSTIN
Number, which contains Date of Registration and Address.
 Pre-sanction inspection is to be carried out by Bank official only.
 No deviation required in case of SALARIED CUSTOMERS maintaining salary account with us.
36 2 CIC reports are required in case of sanctioning of Auto Loan of Rs. ___ Above Rs. 5.00 Lacs
37 Sequence of CIC reports Primary-CIBIL CV, Secondary-Experian, Next- CRIF, Next-Equifax
In case of joint borrowers, CIBIL Score that of borrower/co-borrower from whose account EMI for the auto loan is
38
to be recovered, is to be taken.
If the Account Status for a secured loan/ unsecured loan/ credit card is – i) Suit Filed, ii) Willful default, iii) Suit filed
(Willful Default), iv) Suit filed and Written-off or v) Suit filed (Willful Default) and written off, vi) Restructured, This
39
clause is waived for applicants who have such negative “Account status” in their CIR with the default pertaining
to more than 5 years old and have since maintained a satisfactory credit history.
40 Expand “DPD” in terms of CIBIL Day-Past-Due
Discretionary Powers for approval of deviations in respect of ‘Accounts in default’
Overdue amount Empowered Authority
Upto Rs.10,000/- Sanctioning authority not below the rank of SMGS-4
Above Rs. 10000/- Officer of the Rank of AGM
One overdue monthly payment in last 12 months would be allowed provided DPD did not exceed 30 days. There should be
no overdue at the time of processing of the loan.
The following category of borrowers will get additional 0.50% concession on Rate of Interest.
41  Platinum salary package customers:
 Central Public Sector Enterprises (CPSEs) Considered under ‘RATNA’ Status
Member of Parliament is offered concession in Rate of Interest at ___ bps below
42 5 bps (i.e. 0.05%)
applicable ROI under various car loans schemes for purchase of new cars.
DGM(B&O) = 5 bps
Discretionary power of the authority to give concession in ROI is ___ GM (NW) = 10 bps
43
(CIBIL score must be 721 to 756) CGM = 15 bps
DMD (RB) = Upto MCLR
 Auto loans of Rs 15 lacs and above.
 To purchase new cars.
Stipulated Conditions for concession in pricing (ROI) in
44  Age of borrower should be 25 years & above.
MCLR linked Car Loan products:
 CIBIL Score must be minimum 721-756
 No dealer commission should be paid

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146
Sl. No. Questions Answers
45 For women customers: Concession of 0.05% in ROI in category of 606 to 688 CIC score has been__ Discontinued
Circle CGM is authorized to exercise the discretionary powers of 30 bps to bulk business with the following terms
and conditions:
 The Bulk business will be minimum of 20 Car Loans with gross value of Car Loans amount of Rs 1 Cr and above,
emanating from a single source of entity i.e. from organization / unit etc.
46
 The concessions will be applicable to purchase new cars only.
 For Car Loans up to Rs 5 Lacs, CIBIL score must be 721 & above and for car loans above Rs.5 Lacs, CIBIL and 2nd
CIC score (each) must be 721 & above.
 Dealer commission should not be paid on direct sourcing.
While generally the Equated Monthly Installment need not be changed with every change in the
interest rate, should the borrower seek an EMI reduction consequent to a rate reduction the same
47 Rs. 5 lakhs
may be permitted if the account is a Standard Asset and the loan outstanding is at least Rs. _____and
the interest rate reduction is of 1% or more.
48 EMI Change facility can be provided ___ times during the currency of loan. Only ONCE
CirMac (Circle Management Committee) may decide to suspend sanctioning powers of car loans in
49 branches with higher NPA in car loans (say ___ %). The sanctioning power can be restored after 1.50%
NPA% has reduced below 1%.
50 Expand OCAS Online Customer Acquisition Solution
Pre-sanction survey and KYC can be waived for existing customer in following conditions:
if the address of the customer has not changed and he is a;
 Home/Personal Loan customer with minimum one year’s satisfactory track record. Or
 A car loan customer with a satisfactory track record, who wants to avail another car loan, Or
 Customer having satisfactory deposit account with average balance of Rs. 50,000/ - & above and banking
51 with us for at least one year. Or
 Under Corporate Tie-ups where check-off is available
 VIP flagged salary accounts (in terms of e-Circular no NBG/PBU/PREM-VIPCOD/5/2018-19 Dt. 01.02.2019)
 Gold & above variant Salary package accounts with minimum 6 months old salary account with our Bank,
which are linked to respective Employer codes where applicable and are KYC compliant in CBS with verifiable
PAN & Mobile Number.
Verification of margin money paid:
52  For cheque payment: - To be verified from account statement.
 For cash payment: - Stamped receipt to be obtained from the dealer.
The ALC (Auto Loan Counselors) will play the role of a Direct Sales Executive of car dealers for booking
53 Car Loans and he/she will be paid an incentive of ___% of the car loan amount for the proposal sourced 0.20%
and sanctioned with no fixed remuneration.
Vehicle Registration Number: – verify by sending SMS to VAHAN (space) registration number to 7738299899 and on
54
https://vahan.nic.in
Further the parameters i.e., Segment and Occupation have been bifurcated as under:
Small Car Ex-showroom price: upto Rs. 7 lakhs
55 Mid Car Ex-showroom price: > Rs. 7 lakhs up to Rs. 15.00 Lakhs
Luxury/Premium Segment Ex-showroom price: > Rs. 15.00 Lakhs
SUV/MPV/MUV Sport Utility Vehicles/Multi-Purpose Vehicle/Multi Utility Vehicle
Controller to take action on Online Control Report (OCR) (approve/send back) within 48 hours of the receipt of mail.
56 In case OCR is sent back, the branch has to resubmit the same for approval within 15 days from the date it is sent
back.
57 Under Auto Loan Form-20 refers to Application for Registration of a motor vehicle
58 Under Auto Loan Form-29 refers to Form of Notice of Transfer of Ownership of a Motor Vehicle
59 Under Auto Loan Form-30 refers to Report of Transfer of Ownership of a Motor Vehicle
Application for making an entry of an agreement of Hire Purchase
60 Under Auto Loan Form-34 refers to
Lease / Hypothecation subsequent to Registration.
61 Under Auto Loan Form-35 refers to Hypothecation clearance letter from Bank
62 Revised Scoring Model: Proposal having score of ___ is considered for Clear Sanction. 46 & above
(As per Annexure-15 of Master Circular dated 20.03.2021)
Post disbursement inspection of vehicle must be carried out within ____ days from the date of
63 15 Days
disbursement in respect of auto loans.
The verification of vehicle registration details from the website ‘vahan.nic.in’ should be made in
64 30 Days
all car loans after ___days from the date of disbursement.
The charge for each vehicle search has been fixed as Rs. ____, which is to be paid on-
65 Rs. 50/- without any tax
line through SBI Internet Banking.
The maximum payment limit for the portal is to be set as Rs. 500/- or less. At maximum payment limit of Rs 500/-
66
search for 10 vehicles can be done.

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Sl. No. Questions Answers

67 The default user id & password for Vahan.nic.in is ____ sbibbbbb (e.g. sbi31006)
If the borrower fails to get the vehicle registered, with hypothecation charge in favour of the Bank, within 120 days
from the date of disbursement Or Bank‘s hypothecation charge is vacated before liquidation of the loan, charge of
68
Rs. 2500/- plus GST per month to be recovered from borrower till Bank‘s hypothecation charge is noted by RTO,
after sending due notice to the borrower.
69 BGL Head for Vehicle Registration Verification Charges- BGL-4599284
A copy of Insurance policy for 1st year to be obtained and retained with the loan documents. Borrower is expected
to keep the vehicle insured. But for the subsequent years, in subsequent years, obtention of insurance policy for
70
bank record is waived for loans up to Rs. 20.00 Lakh. Operating officials may endeavor to obtain the same if account
becomes NPA. (Insurance coverage: Market value or at least 110% of outstanding, whichever is higher.)
71 Insurance (each year during tenure of loan) is mandatory for auto loan of Rs. ______. Above Rs. 20 Lacs

72 At all the centers where ECS/ NACH is active, ____ PDCs to be obtained for initial repayment. 3 PDCs
While doing staff accountability exercise when the account becomes NPA and/or fraud,
73 Activation of SI
delay in ______if any should be examined.
GITC have also increased the chase period from existing 30 days to ___ days. The extra
74 32 Days
days of chase will help the system to process at least two Sis.
75 While setting-up S.I. in account for servicing the EMI, option to be chosen__ “100 : Loan Servicing”

76 Charges of Rs. ___for each failed Standing Instruction (S.I.) will be recovered. Rs. 250 + GST
For Standard Asset accounts periodical inspections will be waived after the initial
77 inspection. However, if there is a default of 1 monthly installment, inspection would be Twice (i.e. Half-yearly)
required. In case of NPA accounts inspections would be made ____ a year.
Penalty for delayed payments: If the EMI/Installments (s) is not credited in the loan account of the
78 7 days
borrower within ___ days from the date of ECS/SI/PDCs, Rs 500/ + GST will be recovered.
In BPR centres migration of the auto loan documents to respective RACPCs and
79 2 Months (60 days)
RASMECCs to be effected within ____ months from the date of disbursement.
In the event of pendency in migration beyond 60 days for want of RC, the approval of Network Head for grace period
80
of maximum 30 days to be obtained for all cases of pendency citing valid reasons, within 7 days.
Salaried customers and Non-Salaried Customers such as Professionals & Self-employed, businessman are eligible for
81 auto loan through CLP; Agriculturists are kept out of the purview of this journey. A customer is required to visit the
branch only once during entire journey i.e. at the time of documentation only.
PBBU Heads would be responsible for ensuring that quick mortality cases are examined from fraud
82 angle within ____days of being flagged and a status report of the same has to be put up in the Circle 60 Days
P-review under advice to Corporate Centre.
____% of the Processing Fee will be retained if the application is rejected after pre-sanction survey
83 25%
rest will be refundable.
84 Now Auto Loan is sanctioned along with Fixed Rate of Interest w.e.f. 25.08.2018

85 Now the Security Interest created in Auto Loans to be filed with VAHAN registry only and not on CERSAI.

Comparative Chart of two approaches for Seizure of Vehicles

Parameter Seizure under Loan Agreement Seizure under SARFAESI

When the account is irregular for more
Cause of Action After account becomes NPA
than 30 days i.e., SMA 1
Enabling Law Terms of Loan Agreement SARFAESI Act
Police help can be taken after approaching Chief
If borrower objects, Police protection is
Police Protection Metropolitan Magistrate (CMM) or District
not available
Magistrate (DM) and they are bound to provide.
The amount due should not be less than 20% of
Amount due No minimum amount
principal plus interest.
Value of Security (Vehicle) No stipulation for Min. value of security The value of security should not be less than Rs. 1 lac

Authorized Officer Sanctioning Officer of any Scale. Only Officers of Scale IV & above
Min. 7 days’ notice for starting seizure. Min. 60 days of notice for seizure.
Notice Period
Min. 7 days’ notice for intended sale. Min. 30 days’ notice for intended sale

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 Pre-Approved Car Loan (PACL) Scheme
Eligibility Our existing Resident Indian Salary Package Customers only
 Employees of Government, PSUs and ECR A and better rated corporate borrowers of CAG/CCG.
 Existing Gold, Diamond & Platinum Salary Package account holders of Corporates having more
than 50 salary accounts with us.
 At least one credit of Rs 25000 per month in salary account during 5 of the last 6 months,
Eligibility Criteria excluding cash deposit and system credit.
 Total salary credit summation of Rs 3 lac during last 12 months.
 There should be salary credit in the immediate last month (6th month)
 Account should be in single name and KYC compliant.
 None of the existing loan accounts under the same CIF should be in SMA2 and/or NPA category
Age 21 years to 57 years (Loan to be repaid by the time of retirement)
Loan Amount 48 times NMI Subject to Min. Rs. 1.00 Lakh; Max. Rs. 5.00 Crore,
Repayment Min-3 Years; Max-7 Years
RSM Score 46 & Above
CIC Score 700 and CV New to Credit Score -1 (151-200).
Validity of Offer 30 days
SBI Green Car Loan (Electric Vehicle) Scheme
Eligible Age Age: 21-67 years. (For sanction of loan)
Repayment Min-3 Years, Max-8 Years.
Rate of Interest 0.20% less than applicable ROI in SBI Car Loan
CIC Score 721 & above
Assured Car Loan Scheme
Age Min-18 Years, Max- No Limit Repayment Min-3 Years, Max-7 Years
Min-2.00 Lakh EMI / NMI
Loan Amount
Max- On Road Price (100% of FD Value) RSM Score Not Applicable
Min. Income Not Stipulated (Only Declaration basis) LTV / Margin
Third party TDRs will not be accepted.
For the customers who do not have income proof documents, by keeping lien on the deposits.
During continuation of car loan, partial withdrawal of TDR will not be allowed.
Other Features
Maximum Joint Account holder in STDR/TDR can be – 2
No Processing Fee
PSS – Waived if earlier & present address is same
SBI Certified Pre-owned CAR LOAN Scheme
Eligible Age Age- 21-67 Years (Loan Should be liquidated upto the age of 70 years)
Salaried = Rs. 3.00 Lakhs,
Self-employed / Professionals & Others = Rs. 3.00 Lacs,
Net Monthly Income
Agriculturist= 4 Lacs
NMI of applicant(s) should be at least 2 times of EMI in all types of borrowers.
Minimum: Rs. 3.00 Lakhs
Maximum: if CIC V3 based Score 721-757 = 100 Lakhs;
Loan Amount
Otherwise = 10 Lakhs
(Salaried =30 X NMI; Others 2.5 X Net Annual Income)
Age of the vehicle Not more than 10 years old.
Repayment 10 years minus the age of the vehicle, subject to a Maximum Tenure of 5 years
Processing Fee 1.25% of loan amount subject to minimum ₹ 3,750/- & maximum ₹ 10,000/-.
EMI / NMI % 50%
Margin % 15% (Valuation of Vehicle based on Invoice Price)
 Financing of old vehicles based on Duplicate Registration Books will NOT be entertained.
 Maximum Number of ownerships: The ownership vehicle which is put up for sale under certified
pre-owned should not have changed more than 2 times.
Others  Outstanding RC & Insurance Limit: Within 30 days the RC book and car insurance policy should
be provided to the Bank by the Dealer. In case of pendency beyond 45 days (even for a single
case), Dealer will be hot listed.
 Takeover not permitted

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 NRI Car Loan Scheme

Age 21-70 Years (Must be closed by 75 Yrs) Net Monthly Income $1000 or NAI = $ 12000 or equivalent

Min: Rs. 1.00 Lakhs Margin 15% of On-Road Price

Loan Amt.
Max: 18 X NMI (Based on Income) Repayment 7 Years

Obtaining of Collateral Security is waived

For our bank Customer: NRI should be employed for 2 years and maintaining NRI account with SBI for at
least for 12 months with minimum balance of Rs. 50000 or New Account with USD 5000/- or equivalent.
For Other Bank Customers: Having NRI account with other Banks for last 24 months with a minimum
Others balance/fixed deposits of Rs.50,000/-.
 Statement of bank account for the last twelve months which reflect credit of salary, savings etc.
 No Income stipulated for the Guarantor
 Resident Indian who is the guarantor to the loan should be a close relative as under:
1. Husband/Wife; 2. Father; 3. Mother; 4. Son; 5. Daughter;
Parameters viz Purpose, Age, Rate of Interest, EMI/NMI, Loan to Value (LTV), Margin, Loan Term, Risk Scoring Model, will
be applicable; as in SBI Car Loan Scheme.
Loyalty Car Loan Scheme
 Availed the housing loan from SBI
 Satisfactorily serviced the loan for at least 1 year after the moratorium period
Eligibility  Taken the possession of the house
 Created valid equitable mortgage and
 Maintained security margin of at least 15% for purchase/construction of plot/house.
Age 21-70 Years (Must be closed by 75 Yrs) Net Monthly Income Minimum = Rs. 2.00 Lakhs

Margin = Nil Processing Fee 0.25% of Loan + GST (Min 500 Max-5000)
Margin
LTV% = 100% of Ex-show Room Price Repayment 7 Years
Lowest of (a), (b) and (c)
a) 75% of present market value of the house property less present outstanding in the Home Loan account
Loan Amount and Home Equity, if any.
b) EMI/NMI ratio will be as per respective car loan scheme.
c) 100% of Ex-show Room price of the vehicle.
CIC Score Minimum 650. No Loan will be sanctioned below 650.

Rate of Interest: - 5 bps concession in interest applicable to SBI Car Loan even after all the concessions.
Others No need to extension of Equitable Mortgage for Loan up to Rs. 10.00 Lacs, only a letter from borrower is
required that title teed will be in possession of the bank till the loan is fully liquidated.
Parameters viz Purpose, Age, EMI/NMI, Loan Term, Risk Scoring Model, will be applicable; as in SBI Car Loan Scheme.

Super Bike Loan Scheme

Eligible Age Age- 21-57 years (For Sanction of Loan and must be repaid by 60 years of age)
Salaried / Pensioner / Self-professional / Businessman = Rs. 3.00 Lacs
Net Monthly Income
Agriculturist = 4.00 Lacs
Loan Amount Min- 1.50 Lakhs, Max- 25.00 Lakhs
15% of On-road price (On-road price of the vehicle is inclusive of Showroom cost, Registration
Margin %
Charges, Road tax and Insurance only)
EMI / NMI % 50% for all applicants

Repayment 48 Months or 60 years of Age, whichever is earlier

Processing Fee 2% of Loan Amount (Maximum = Rs. 10000/-)

Salaried Customers / Defence Pensioners = 700 or New to Credit (NTC) 151-200
CIC Score
Others = 731 or New to Credit (NTC) 151-200
Capacity = 500 Cubic Capacity (CC) or more
Others
The young upwardly mobile youths who buy these bikes are in the age bracket of 18 to 40 years.

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 SBI Two-Wheeler Loan Scheme

Eligible Age 21 – 57 Years

Net Monthly Income Rs. 12500/- (Net Annual Income = 1.50 Lakh)

Min- 20000/-
Loan Amount
Max: 3.00 Lakhs; (Subject to 4 times of NMI and EMI/NMI%)

Margin % 15% of On-road price. (i.e. Loan to Value (LTV%) = 85% of On-road Price)

Repayment 36 Months and 48 Months, subject to the Loan must be closed before 60 years of age.

Processing Fee 2% of Loan + GST

Up to 50% = For other applicants

EMI / NMI %
Up to 60% = For Existing Salary Package Customers of SBI

CIC Score 700 for all customers

Pre-sanction Survey of Residence and Workplace to be conducted, except for
(i.e. waived for following category of customers)
 Our Bank Credit relationship customers with 1 year’s satisfactory track record.
Others
 Our Bank SB A/c customers with average monthly balance of Rs 10,000 and above with 1 year’s
relationship and minimum 1 non BGL credit transaction in the past 12 months
Vehicle be insured for 3 years upfront, with hypothecation clause in favor of Bank.
“SBI Easy Ride” Digital Two -Wheeler Loan “PA2WeeL” Scheme

Age 21 – 57 Years Margin 15% of On-Road Price

Min-20000/-, Max-3.00 Lacs Repayment Min-12 Months, Max-48 Months

Loan Amount
(4 x NMI subject to EMI/NMI%) CSP Customers– 700 and (-1)
CIBIL Score
EMI / NMI% 50% (RSM - 45 & above) Other Customers-731 and (-1)

Minimum Income The customer should have consistent single credit of Rs >=10000 in 9 out of last 12 months.

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151
 Standard Operating Procedure (SOP) On Seizure and Sale of Vehicles

Before Possession
When the account is irregular for more than 30 days i.e., SMA 1, 1st Notice will be sent to the
borrower/s giving 15 days’ time reckoned from the date of service of notice, to clear the overdue
1st Notice amount. -The notice will be signed by the Branch Manager/CPC Head/ Head of Recovery Cell.
(Letter to
defaulting If the borrower or his agent is avoiding the service of the notice or for any other reason the notice
Borrower) could not be served, a copy of the demand notice may be affixed on the outer door or at a
conspicuous part of the house or building of the borrower or his agent where he resides or carries on
business.
2nd notice will be issued after classifying the loan account as NPA. It will be intimated to the borrower
that the loan is recalled and entire amount with interest becomes payable within 7 days from the
date of the notice. When the second notice is also ignored the bank has the right to repossess the
2nd Notice
vehicle. The authority empowered to sanction the loan would be the authority to take a decision on
(Letter from the
repossession of the vehicle. In other words, Branch Manager /CPC Head/ Head of the Recovery Cell
Branch to
is authorized to take decision to repossess the vehicle for which no approval from Controlling
Borrower/
Authority is required.
Guarantor about
engagement of
In case the customer does not hand over the vehicle as requested in our second notice; the
Recovery Agent
repossession should be resorted to by Resolution Agent. Presence of Bank official is not required
for Repossession
while repossessing. Please note that Ras are not permitted to resort to unfair means while
of vehicle)
repossessing. Panchnama and Safe Custody: After repossessing the vehicle, in the presence of two
witnesses, a Panchnama should be drawn up. The repossessed vehicle should be kept in the custody
of Recovery Agents.
After Possession
The valuation of the vehicle should be arranged immediately on possession of the vehicle. An
authorized
Valuation service centre of the manufacturer, a government approved valuer or an insurance surveyor’s
services may be used for valuation. This will help in fixing the base price for auction. It should be
completed within one week of repossession.
Immediately after the valuation, the Reserve Price should be arranged to be fixed by the Zonal Office
Fixing of Reserve Credit Committee/Competent Authority. It should be completed within 7 days’ time.
Price Valuation and Fixing of Reserve Price should be completed within 15 days from the date of seizure/
repossession of the vehicle.
Before effecting the sale, a notice of minimum 7 days to be given to the borrower intimating that as
3rd Notice he failed to repay the dues by him and having repossession of the vehicle by the Bank, it has been
(Sale Notice) decided to sell the vehicle to recover the dues under the loan account. The notice will be signed by
Branch Manager /CPC Head/ Head of the Recovery Cell.
All three notices mentioned above should be sent in duplicate, one copy by courier/ ordinary post and the second copy
by Registered Post.
Demand notices to guarantors may be served only in cases where the guarantor has provided
Notice to
guarantee to the Bank. In other cases, a copy of the notice may be sent to the Guarantor for
Guarantor
information.
The sale of the vehicle would be carried out as per the law and in a transparent manner. The Bank
will have right to recover from the borrower the balance due if any after the sale of the vehicle. Excess
amount obtained if any on the sale of the vehicle will be returned to the borrower. The authorized
officer may sell the vehicle either by public auction, by inviting tenders from public, by inviting
Sale of the Vehicle
quotations from parties dealing in vehicles. In case of public auction, the notice of auction should be
published in two leading newspapers one of which should be in vernacular language.
GST: Will be applicable as per Bank’s laid down instructions and will be recovered from the buyer of
the vehicle.
After receipt of the sale price, authorized officer shall issue a Certificate of Sale which shall be the
Sale Certificate
prima facie evidence of the title of the purchaser.
Opportunity for
The bank will hand over the possession of the asset to the borrower any time after repossession but
the borrower to
before concluding the sale transaction, provided the Bank dues are cleared in full or a compromise
take back the
settlement has been reached between the borrower and the Bank.
vehicle

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