AU New Tractor Loan

Our customer segments for providing loans on wheels include:
• Individual
• Non-individual (Private Limited, Public Limited, partnership firm, proprietorship firm, co-operative societies, trust and Hindu Undivided Family)

The age criteria are as under:
• Personal vehicle: 18 years and above
• Commercial vehicle: 21 years and above
• Heavy commercial vehicle: 24 years and above

The documents will include No-Objection Certificate (NOC) addressed to the RTO & insurance endorsement cancellation letter addressed to your vehicle insurance company.

Existing customers and their referrals are provided preferential treatment in documentation requirement, rate, fees and loan amount.

Presence of a co-applicant and/ or guarantor often lends support to the customer's application. This can facilitate faster approval. However, the requirement is dependent on the customer's income profile which is required to meet our credit criteria.

We fund standard fitment supplied by the manufacturer for different variants. Additional accessories are not funded.

We classify commercial vehicle loan customers in four categories:

• First Time user (FTU)
• First Time Buyer (FTB)
• Transporter
• Captive User

List of documents required for loan are:

• KYC documents (As per KYC Policy of Au Small Finance Bank)
• Income proof and other documents for calculating loan eligibility
• Repayment instrument

A driving licence is not a mandatory document for availing loans for vehicles. It is required for customers who are drivers-cum-owners. This is to establish their experience in running a commercial vehicle, construction equipment, or tractor.

House ownership in the family and/ or stability of residence in the city where the loan application is being made are important parameters in the assessment of a loan application. Ownership could be in the name of an immediate family member too.

We can provide a loan if you do not have any income documents.
We assess the income or capability of running a vehicle based on your fleet ownership or experience in running a vehicle. Decision to fund a commercial vehicle is made based on the same.
We also specialise in assessing the business income of a customer through a visit to their business premises and personal discussion. A vehicle loan can be given if we are satisfied with the repayment capacity of the customer.

We provide commercial vehicle loan, auto loan (personal car/ taxi), two-wheeler loan, three-wheeler loan, tractor loan and construction equipment loan (for backhoe loaders and pick-and-carry cranes).

We select vehicle models based on the technology, after-sales support, and secondary market values of the vehicles. Please contact the nearest branch of AU Small Finance Bank or our customer support executive at 1800 1200 1200 to know about the vehicle models funded by us.

Normally, a vehicle financed by AU Small Finance Bank or lien marking on free vehicles/ equipment is acceptable collateral security. Additional collateral security may be required based on your requirement of loan amount or the vehicle to be financed.

The minimum loan amount is ₹20,000 and maximum loan amount is 100% of ex-showroom price net of discounts (insurance and registration amount not considered as part of cost), based on product and customer profile.

The ex-showroom price net of all discounts will be considered to determine the eligible loan amount.

A guarantor is a person who guarantees to pay for someone else's debt if they default on a loan obligation. Guarantors often have experience in the same trade and help a customer to ply their vehicle.

Loans are normally sanctioned within 48 hours (excluding holidays) after submission of all the required documents. It depends on customer support in assessment of loan eligibility.

Interest is calculated on a monthly reducing balance basis.

Down payment is an important part of the investment you make in the vehicle/ equipment/ tractor and your ability to service the instalments. We balance the loan amount required and down payment based on your income sources and our credit assessment.

Can I cancel the loan before or after disbursement?No cancellation fee is charged by the Bank before disbursement of the loan amount. However, the Bank will charge on a case-to-case basis for cancellation after disbursement of the loan.

Repayment can be done through Standing Instructions to your AU Small Finance Bank account, cash deposit, cheque, or Automated Clearing House (ACH).

We provide vehicle loans for a minimum loan period of 6 months and a maximum period of 5 years.

Yes, we can provide a loan on your existing free vehicle. The vehicle should be hypothecated to AU Small Finance Bank after the loan sanction process and prior to disbursement.

The Loan-to-Value amount is based on the vehicle bought and the customer profile. It is calculated on the ex-showroom price of the vehicle for new vehicles and market value (based on the Bank’s Grid Value, Valuation & Insured Declared Value) in case of refinance/ used vehicles.

Instalment schedule is normally in the form of EMIs (Equated Monthly Instalments (it could be quarterly or half-yearly in case of tractor loans) subject to the terms and conditions of the repayment schedule. The repayment instrument for EMI will be presented (as per registered repayment mode) on EMI due date as specified in the schedule/ sanction letter. To overcome operational issues ,holidays etc., it is advised to keep sufficient balance in your bank account 2-3 days prior to the due date of EMI and avoid penal interest and other charges as well as delinquency status. Further schedule can be tailored to customer's specific requirement at AU Small Finance Bank’s discretion. We do not allow balloon repayments or step-up structures.

Part prepayment is not allowed. Foreclosure can be done by paying outstanding principal, overdue EMIs, penalties, and charges. In addition, the Bank will charge some amount which can be 5% of outstanding principal if foreclosed within 12 months of the date of disbursement, and 3% of outstanding principal if foreclosed after 12 months from the date of disbursement of the loan.

Yes. Instalments can be deposited at any branch of AU Small Finance Bank.