SBI SME Auto loan allows Small and Medium Entrepreneurs (SME) for buying new and old vehicles such as auto-rickshaw, car, jeep, MUV of any model. Old vehicles should not be older than 4 years and be passed by the bank's assessment. This Term loan scheme also known as "Finance for Road Transport Operators - FRTO".
Eligibility for SBI SME Auto Loan (SBI FRTO Loan)
- Maximum age of the proprietor – 60 years
- Minimum of 1 year of existence for proprietors and three years for corporates and partnership firms
- Minimum net income of Rs. 1 lakh for last two years
- Minimum turnover of Rs. 5 lakhs for proprietorship, 10 lakhs for partnership and Rs. 6 lakhs for Corporates.
Margin for SBI SME Auto Loan (SBI FRTO Loan)
- Term loan for new vehicle up to Rs 6 lakhs – 15%
- Term loans over 6 lakhs for old vehicles up to 2 years – 30%
- Old vehicles of 2 to 4 years – 40%
Tenure of Loan for SBI SME Auto Loan (SBI FRTO Loan)
- Term loan
- Repayable in 84 months for new vehicles
- Repayable in 60 months for old vehicles up to 2 years old
- Repayable in 36 months for vehicles more than 2 years and up to 4 years old
- Short term loan is repayable in 36 monthly installments (new and up to 2 year old vehicles only)
Primary security for SBI SME Auto Loan (SBI FRTO Loan)
Hypothecation of the vehicle by noting Banks charge on in the books of SRTO
Collateral security
Tangible security of borrower or guarantor valued for not less than 35% of the loan
Post dated cheques to be obtained for the EMIs
Personal guarantees of the MD and other directors in case of corporates
Loan amount for SBI SME Auto Loan (SBI FRTO Loan)
- 2 times the net annul income/annual cash accruals less repayment obligations
- Maximum of Rs. 2 lakhs in the normal course for new vehicles
