Loans in India

One of the reasons for boom in Indian economy is that now a days loans are easily available and the rate of interests at which they are available are very reasonable. Banks are giving loan for and loan against any and every thing. Government too is encouraging people to take loans for certain purposes. For example, government is encouraging people to take housing loans by giving tax concessions. In view of the deluge of loans that are available in the market today, we have come up with useful information about variety of loans that are available in India. These include: Home Loans India To have one's own home is the dream of every person. Now that getting a home loan is so easy it seems everyone can fulfill his / her long cherished dream. Auto Loans India With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream car. Business Loans India Several banks give loans to cater to business requirements. Banks have laid out a number of products specifically catering to SSI (small-scale industries) and Small Business Borrowers. Education Loans India Education is the essence of life. To ensure that no deserving student is denied education for want of funds government is promoting education loans in a big way. Marriage Loans India Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Personal Loans India Personal loan is an unsecured loan that does not require any security for borrowing money. Personal loans help you to take care of your immediate requirements without much of a hassle. Loans against home Loan against home connotes a loan that is given or disbursed against the

mortgage of home. The loan against property is given as a certain percentage of market value of the property. Loans against auto Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan. Loans against shares It is advisable to take loan against equity (shares & debentures) only when you are expecting a certain sum of money a few months down the line and you need some funds in the interim.

Home Loans
Real estate is currently one of the fastest growing sectors in India. Banking sector is also registering profitable business since the last few decades, with the growth of real estate. Majority of the banks are also offering easy home loans at attractive rates to their customers. Now that getting a home loan is so easy, it seems everyone can fulfill his / her long cherished dreams of purchasing lands, building their houses and expanding their homes. Different types of home loans are tailored to suit the heterogeneous requirements of the customers. The description of some of the most common types of home loans is given below. Types Of Home Loans

Home Purchase Loans: This is the basic home loan for the purchase of a new home. Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you. Home Construction Loan: This loan is available for the construction of a new home. Home Extension Loan: This is given for expanding or extending an existing home. For instance, you may apply for a loan for the addition of an extra room in your home and for similar cases. Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan. Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes. Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home. Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest. Refinance Loans: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home. Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

Features of Home Loan Home loans are available on fixed rate of interest as well as floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. However, the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending. In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because you are taking on some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up paying more than fixed rate loans. The type of interest you opt for will entirely depend on your personal preferences. General Information

The loan amount is based on the repayment capacity of the customer. However, it cannot be more than 85% of the cost of the property (including the cost of the land). The minimum term of home loan is 5 years, while the maximum duration for the loan is 20 years, subject to the retirement age of the applicant. Home Loans can be applied either individually or jointly, with spouse, children (son or daughter) and even earning parents (father or mother), but if staying with the applicant and having regular income. Home loan eligibility can be enhanced by repaying the outstanding loans, clubbing the income, increasing the home loan tenure and opting for a step-up loan. The amount of loan sanctioned varies from bank to bank. Generally, the maximum loan amount granted for the applicant would be 80% to 85% of the cost of the home. The eligibility for the applicant depends upon his/her capacity of repayment. It stiffens with the increase in home loan rates. Processing charge, pre-payment penalties, commitment fees and miscellaneous costs accompany a home loan, in many of the cases. Providing additional security, like bonds, fixed deposits and LIC policies, or having a guarantor can enhance your eligibility for a home loan.

Eligibility Criteria

The minimum age limit for the person applying for loan is 21 years.

For Government employees and those working at public limited companies, the maximum age limit for applying for home loan is 60 years, while for salaried individuals, it is 58 years.. For self employed people, the maximum age limit is 65 years. The applicant should be graduate. The applicant should have a stable source of income, at the time of availing the loan and should have a saving history as well. Required

Documents Salaried Individuals

Salary slip/Form 16 A A photocopy of the first and last pages of Ration card or copy of PAN/Telephone/Electricity bills A photocopy of Investments (FD Certificates, Shares, any fixed asset etc. or any other documents supporting the financial background of the borrower A photocopy of LIC policies with the latest premium payment receipts (if any). Two passport size photographs A photocopy of bank statement for the last six months

Self-Employed/Businessmen

A brief introduction of Business/Profession Balance Sheet, Profit and Loss account and statement of income with Income Tax returns for the last 3 years, certified by a CA A photocopy of Advance Tax payments (if applicable) A photocopy of Registration Certificate of establishment under shops and Establishments Act/Factories Act A photocopy of Registration Certificate for deduction of Profession Tax (if applicable) Bank statements of Current and Saving accounts for the last 6 months A photocopy of Certificate of Practice(if applicable) A photocopy of any bank loan (if applicable) A photocopy of the first and last pages of the Ration card or a copy of PAN/Telephone/Electricity Bills A photocopy of LIC policy (if applicable) A photocopy of investments (FD Certificates, Shares, any other fixed asset Two passport size photographs

Salaried Customers

Self Employed Self Employed Businessman Professionals form with

Application Application form with Application form with photograph photograph photograph

Identity and Identity and Residence Identity and Residence Proof Residence Proof Proof Latest slip Form 16 Salary- Education Qualifications Education Qualifications Certificate and Proof of Certificate and Proof of business existence business existence Last 3 years Income Tax Business profile returns (self and business)

Last 6 months Last 3 years Profit /Loss Last 3 years Income Tax returns bank statements and Balance Sheet (self and business) & Last 3 years Profit /Loss and Balance Sheet

These are a range of Home Loans available:

Home Purchase Loans: for the purchase of a new home. Home Improvement Loans: for implementing repair works/renovations in a home that you have already purchased. Home Construction Loans : for the construction of a new home. Home Extension Loans: for expanding/extending an existing home. Land Purchase Loans: for purchase of land for home construction/investment purposes. Home Conversion Loans: for those who have financed the present home with a home loan and wishes to purchase/move to another home for which some extra finances are required. In Home Conversion Loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan. Balance Transfer Loans: helps you to pay-off an existing home loan and avail the option of a loan with a lower rate of interest.

Bridge Loans: for people who wish to sell the existing home and purchase another. This loan helps you finance the new home, until you find a buyer for your old home. Refinance Loans: helps you pay off the debt you have incurred from private sources like relatives/friends, for the purchase of your present home. Stamp Duty Loans: is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property. Loans to NRIs: to build/buy a home in India. EMI is payable till the loan is paid back in full. It consists of a portion of the interest as well as the principal.

Some of the incentives offered by banks are :

Loan sanction without requiring you to identify property as a prerequisite for eligibility. Free accident/property insurance. Waiving of pre-payment penalty/processing fee.

Auto Loans
With a plethora of auto loan opportunities available in India these days, it is now possible for you to buy your dream car within a matter of days. No need to save up money for making complete down payment at the time of buying. Just gather enough amount for the initial payment and pay the rest in easy installments, by taking up a loan. The best part about auto financing is that, apart from the new cars, loans are available for old cars as well. After you have decided to take an auto loan, check out the various finance schemes available in the market. After undertaking a thorough research of each and every scheme, you will need to pick the one that suits you the most, in terms of interest rate, monthly installments, duration, and so on. The size of the loan will depend upon the cost of the vehicle and its type (standard or premium), along with the percentage financing you want or are being offered. In case of a new car, up to 90% of cost of the car is finance, while the percentage gets reduced to 80% in case of old car. However, the financiers might have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults and the finance company has to sell the car, to get back their loan amount, it would be able to get a higher value. Therefore, the finance company may give higher percentage of finance in such a case. There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which gets cancelled after the loan is repaid. Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes that offer loans for 7 years as well. General Features

In case of a new car, loan amount is up to 90% of cost of the car. In case of used car, loan amount is up to 80% of the car. The maximum loan amount is up to 3 times the annual salary (for salaried professionals) or 6 times the annual income (for self employed professionals). Banks generally offer a preferential treatment to their existing customers. If you have savings or current account with a bank, it is easier to get the loan and you might also get preference in terms of rate of interest. Loan is given for a period of 1 to 5 years.

If you want to go for an early settlement of the loan amount, certain charges are taken as a penalty. For the purpose of auto loan, the interest is calculated on compound basis. There is also a minimum amount of auto loan that you have to take from finance money. In case you have been declared bankrupt, applied for bankruptcy, defaulted in some loan in the past or a court case pending against you, it will be very difficult for you to get an auto loan. The rate of interest for an auto loan differs from one bank to the other, while the minimum is somewhere around 10-11 percent.

Eligibility Criteria

Minimum Age of Applicant While Applying For Loan: 21 years Maximum Age of Applicant at Loan Maturity: 58 years Minimum Employment: 1 year in current employment and minimum 2 years of employment in general Minimum Annual Income: Rs 100,000 (net) Telephone: Must at Residence

Documents Required

Proof of Identity (Copy of Passport, PAN Card, Voters ID Card or Driving License) Income Proof (Latest salary slip with form 16 - for salaried individuals or IT returns for the last two financial years - for self employed individuals and professionals) Address Proof (Copy of Ration Card/Driving License/Voters Card/Passport /Telephone Bill/ Electricity Bill/Life Insurance Policy/ Pan Card) Bank Statement (For the last 6 months) Two passport size photographs

Business Loan
Business loans are available to self employed professionals, firms and corporations, to meet their operating expenses, finance capital expenditure (or acquisition of fixed assets) towards starting or expanding a business. Even industrial units are given business loans, to swap existing high-cost debt from other bank / financial institution. Apart from providing funding, bank can also issue letters of credit or give a guarantee, on behalf of the customer, to the suppliers and even government departments, for the procurement of goods and services on credit. The maximum amount of business loan that can be sanctioned varies from bank to bank. However, the minimum loan amount is Rs. 25000 and maximum loan tenure is 5 years. Generally, no security is required for business credit up to a certain limit. For business loans above the limit, banks usually require a collateral security or a percentage of business loans as margin, in the form of fixed deposit with the bank. Business loans are similar to an overdraft and are available like a limit on current account. In this case, the interest is charged only on the actual amount utilized, rather the entire amount of loan. Types of Business Loans

Professional Loans Professional loans, as their very name suggests, are provided to self employed professionals like Doctor, Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured in nature, this type of loan is not given to manufacturing, trading or processing units. The amount of loan varies between Rs. 25000 to Rs. 25 lakh, considering the age of the applicant, his financial standing, his repayment capacity, tenure of the loan (maximum 5 years), etc. In case of professional loans, the rate of interest depends upon the prime lending rate, is calculated on diminishing balance and can be on the fixed as well as fluctuating basis. In many cases, it depends upon the customer's profile and his financial capacity. The payment is made through EMIs and in only a few cases, tangible collateral security is required. Most of the finance companies also charge a process fee, usually 1% of the loan amount. Documents Required

Proof of Identity (Passport Copy/ Voters ID Card/ Driving License) Address Proof (Ration Card/ Telephone Bill/ /Electricity Bill/ Passport) Bank Statements (latest 6 months bank statement /passbook) Latest ITR, along with computation of income

Balance Sheet & P&L Account for the last 2 yrs, certified by a CA Qualification Proof of the Highest Professional Degree Proof of Continuation (Trade license /Establishment /Sales Tax Certificate) Other Mandatory Documents (Sole Proprietorship - Declaration, Partnership - Copy of Partnership Deed, Apart from Copy of MOA, AOA & Board Resolution) Two passport size photographs

Trade Loans Trade loans are provided to traders/ businessmen, so as to help them either open a new business or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh, considering the age of the customer, his financial standing, his repayment capacity, tenure of the loan, etc. The maximum duration for which the loan is given is 5 years and it has to be repaid through Equated Monthly Installments or EMI. The rate of interest depends upon the prime lending rate and can be offered on the fixed as well as fluctuating basis. There are many banks that require customers to furnish collateral security for the loan, in the form of mortgage of land (not agricultural land) and building. Apart from that, National Savings Certificates, Government Bonds, Bank's Term Deposits, Assignment of Life Insurance Policies, Approved Shares & Bonds (in the name of borrower/proprietor/partner/director) are also acceptable. Type of Concerns Given Business Loan

Sole Proprietorships Partnerships Private Limited Companies Required

Documents Sole Proprietorship / Partnership Firm

Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration Receipt OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern) Proof of Individual Identity (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)

Proof of Residence Address (Copy of Passport/Voter's Identity Card/Driving License/Ration Card/Life Insurance Policy/Electricity Bill/Telephone Bill) PAN Number/Form 60 of the Concern Financial Documents (Copy of P & L Account and Balance Sheet for last two years, audited by a CA and Copies of IT returns for the last two years) Bank Statements for last 6 months Partnership Deed (Required only in case of Partnership Firm) Proof of Place of Business Two passport size photographs

Private Limited Company

Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern) Memorandum and Articles of Association (Copy of Certificate of Incorporation) Board Resolution (Copy of Annual Return establishing the shareholding pattern) Proof of Individual Identity for the authorized signatories and 2 directors, including the managing director (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card) List of Directors Copy of Form 32 filed with ROC PAN Card / Form 60 of the Concern Financial Documents (Copy of P & L and Balance Sheet for last two years, audited by a CA, and Copies of IT returns for the last two years) Bank Statements for last 6 months Proof of Place of Business Two passport size photographs Information

More

Short-term Loans Used for short-term working capital requirements and paid within 1 year. Intermediate Loans Used for new business, to build inventory, buy equipment or increase working capital, and paid between 1 and 3 years.

Long-term Loans Used for well established business, to increase fixed assets, for related business acquisitions or expansion, and paid between 3 and 5 years. At times, used for start-up business, to purchase land or buildings, fund construction efforts or finance long-term working capital. Note Two types of charges might be levied in case of business loan - processing fee and Pre-payment fee. Processing fee is payable at the time of processing of loan application. Pre-payment fee is payable in case you decide to pre-close your loan account, by paying the entire/part of the loan before it is due.

Marriage Loans
Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Marriage loans ensure that money is not a hindrance in marriage preparations. Several Indian banks offer loans for marriage. The loan is available for meeting the expenses of marriage of your own self as well as that of your daughter, son dependent sister and dependent brother. The marriage loan amount that can be sanctioned varies from bank to bank and from customer to customer, depending on a number of factors, such as, security/collateral offered by the customer, repayment capacity of the borrower, age of the borrower. Generally, it is twice the net annual income of the applicant. There is no fixed interest rate for marriage loans in India. It is mostly based on the current market rate, at the time of taking the loan. For the loan to be disbursed, the bride and the groom should not be less than 18 years and 21 years of age respectively. Anyone can apply for the loan. He/she has to fill a form at bank outlet. The bank charges processing fees, at the time of submission of the form, which varies from one bank to the other. The repayment of the loan can be done either through monthly/quarterly/half yearly installments or under Equated Monthly Installments (EMI) scheme. Eligibility for Marriage Loan Though the eligibility criteria vary from bank to bank, following major conditions should be fulfilled:

Minimum Age for loan: 21 years (groom)/ 18 years (bride) Maximum Age of Applicant at the Time of Loan Maturity: 60 years Net Annual Income: Rs. 1,44,000 pa Years in Current Job / Profession: 1 year Years in Current Residence: 1 year Required

Documents Salaried Individuals

Proof of Identity (Passport Copy/ Voters ID card/ Driving License). Address Proof (Ration card Tel/elect. Bill/ / Passport copy) Bank Statement/ Passbook, for last 6 months Latest salary slip or current dated salary certificate, with latest Form 16 Two passport size photographs

Self Employed Professionals & Businessmen

Proof of Identity (Passport Copy/ Voters ID card/ Driving License). Address Proof (Ration card Tel/electricity Bill/ Passport ) Bank Statement/ Passbook, for last 6 months ITR for the last 2 yrs, along with along with computation of income, Balance Sheet & P&L Account (certified by a CA) Qualification Proof of the Highest Professional Degree Proof of Continuation (Trade License /Establishment /Sales Tax Certificate) Other Mandatory Documents (Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed, Cert. Copy of MOA, AOA & Board resolution.) Two passport size photographs

Other Information

Loan processing charges are generally levied, equivalent to 2% to 3% of the loan amount. Prepayment of the loan is possible after 180 days of availing the loan. In this case, certain charges are levied, as per the bank's norms. The maximum limit of marriage loan is Rs. 2 to 3 lakh, varying from one bank to the other.

Personal Loans
Personal loan is a lump sum amount that you take either from a bank or building society or another lender. Such loans help you to take care of your immediate requirements without much of a hassle. In fact, personal loan is one of the quickest ways of borrowing money. Also, no questions regarding the end use of the loan are asked. You can use the loan amount for any purpose such as home renovation, marriage expenses, medical expenses, holidays, consumer durables, higher education etc. While applying for the loan, the lender usually conducts a credit worthiness check, before giving the loan. Personal loans are repayable in equal monthly installments (EMIs) and the loan tenure varies from 1 to 5 years. The maximum amount of personal loan for which you are eligible depends upon your take-home salary. The exact loan amount depends on your eligibility and takes into account many other things as well, like your credit rating, job security, residential location and the ability to repay the loan amount in time. You can also apply jointly with a co-applicant, say your spouse for personal loan. This allows you to increase your loan eligibility, as the income of your spouse is also added to your income, for the purpose of calculating the total loan amount. The loan range in case of personal loan is Rs. 50,000 to Rs. 20, 00,000. As personal loans are given without any security and involve a high risk, the interest charged is usually more as compared to other loans, usually varying from 12 to 24%. Apart from this, interest processing fee is also charged from the borrowers. Processing fee is payable at the time of processing of loan application. A pre-payment fee is payable in case you decide to pre-close your loan account. Both processing fee and pre-payment fee are in the range of 2-3%. You can get the benefits of preferred interest rates, priority processing and simpler documentation, if you are an existing customer with the bank. Generally, personal loans are sanctioned within 72 hours. Types of Personal Loans

A secured loan is one in which you need to attach a guarantee against the sum of money borrowed. This can either be in the form of your property or any fixed/movable asset. Upon default, there is a risk of the asset being taken over by the bank and sold off. An unsecured loan is one in which no security needs to given for the money borrowed. However, in this case, the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. In case the recipient fails to repay the loan, the lender can seek legal help to make up for the loss incurred.

Eligibility

Criteria

for

Personal

Loans

Salaried Individuals

Minimum Age of the Applicant - 21 years Maximum Age of Applicant at Loan Maturity - 58 years Minimum Employment Period - 2 years in total and 1 year at present organization Minimum Income - Rs. 8000 per month

Self Employed Professionals & Businessman

Minimum Age of the Applicant - 25 years Maximum age of Applicant at Loan Maturity - 65 years Minimum Business Period - Minimum 3 years in current business and 5 years total experience Minimum Annual Income - Rs.60,000

Documents Required for Personal Loan

Bank Statement for last three months (where salary/income is credited) Salary Slips for last three months (if salaried) or ITR for the last two years (if self employed) Proof of Continuity in Current Job - Form 16 / Company Appointment Letter (if salaried) Proof of Identity (Copy Of Passport / Driving License / Voters ID / PAN Card / Photo Credit Card / Employee ID Card) Proof of Residence (Copy Of Ration Card / Utility Bill / LIC Policy Receipt) Proof of Qualification Highest Degree (for Professionals / Govt employees) For Professionals - proof of qualification, say degree, registration with professional council, etc. Two passport size photographs

Loan against Home

Loan against home connotes a loan that is given or disbursed against the mortgage of home, as a certain percentage of market value of the property. Generally, the loan amount that is sanctioned ranges from 40% to 70% of the market value, with a minimum threshold limit of Rs 2 lakh. A loan against home works out to be much cheaper than personal loan. The rate is lower because the lending entity has a security in the form of the housing mortgage vis--vis a personal loan that is given without any security. The tenure for repaying loan against home has an upper limit of 10 years. The loan can be taken for any purpose and the customer is not required to disclose the motive behind the loan, to the lending authority. The criteria for loan against home are same as that of a home loan. Part prepayment as well as full prepayment of the loan is generally allowed by most lending institutions, though with a charge. Loan against property is available in case of both residential and commercial property. Many housing finance companies allow individuals to take loan against home even if they have taken a housing loan from them. Amount Of Loan Depends Upon

Your income, savings, debt obligations Cost/value of the property mortgaged Your repayment track record for other loans, credit cards, etc Number of years in service/ business Criteria

Eligibility Salaried Individuals

Minimum Age of Applicant: 21 years Maximum Age of Applicant at the Time of Loan Maturity: 60 years Minimum Net Monthly Income: Rs 12,000 per month

Self-employed Individuals

Minimum Age of Applicant: 21 years Maximum Age of applicant at the Time of Loan Maturity: 65 years Minimum Annual Income: Rs 1,50,000 per year

Documents Required

Proof of Residence (Copy of Ration Card/ Telephone Bill/ Electricity Bill/ Voters Card)

Proof of Identity - (Copy of Voters Card/ Drivers License/ Employers Card) Bank Statement / Passbook, for past 6 months (where salary/ income is credited) Salary Slip for last 3 months, with all deductions Form 16 for the last 2 years Copy of all Property Documents In case of self employed professionals, apart from the above documents, certified financial statement for last 2 years is required Two passport size photographs

Other Details

Generally, loan processing charge of 2% is levied. Pre-payment is allowed after 6 months. Generally, prepayment charge equivalent to 4% of the outstanding principal is levied. In most of the cases, the minimum amount of loan against property is Rs 25,000 and the maximum amount is Rs 1.5 crore (Rs 15 million). The charges that might apply in case of loan against property are processing fee, pre-payment fee, charges for changing from fixed to floating rate of interest and charges for changing from floating to fixed rate of interest.

Loan Against Automobiles

Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan. The money can be utilized for personal as well as business needs. The overdraft amount that can be sanctioned is up to 80% of the value of the car. All vehicles are valued by Bank empanelled valuers. To receive the overdraft amount, a Current Account with an overdraft limit is created in borrower's name. The interest is charged only on the amount withdrawn. Most of the banks give overdraft facility even if the car is hypothecated in another financier's name. Usually, the overdraft facility is not given if the car is more than 9 years old. Documents Required

Proof of Residence (Copy of Photo Ration Card with DOB / Photo Driving License with DOB / Passport Copy / Electricity Bill / Telephone Bill / Credit Card Statement / Employer Certificate or ID / Lease Agreement) Proof of Identity (Copy of Passport / Photo Driving License with DOB / Voters ID Card / PAN Card / Photo Ration Card with DOB) Proof of Income: Latest Salary Slip and latest form 16 or latest ITR Proof of Signature (Copy of Passport copy / Photo Driving License with DOB / PAN Card / Credit Card Statement / Banker's Verification / Copy of IP paid to Bank and cleared) Two passport size photographs