Hire Purchase Loan
Purpose Financing on vehicle or equipment of the business.
Financing Ratio: Maximum 80% of the value of the vehicle/equipment.
Nature Non-revolving & non-renewable.
Disbursement Full amount after taking charge on vehicle or equipment and obtaining insurance policy, for releasing payment to the vendor.
Principal Repayment On equated installment basis (EMI/EQI).
Interest Repayment: On quarterly basis or on installment payment date.
Security: Charge on the financed vehicle/equipment by taking titleship on bank’s name.
Tenure: Maximum 8 years based on estimated life of the vehicle/equipment