Bank Loan for Taxi Operators – Application Procedure
Bank Loan for Taxi Operators
Canara Bank is offering a unique scheme to help taxi operators in Mumbai comply with the Court orders for replacement of old taxis by brand new taxi. Canara Bank is one of the largest banks in India and a financial conglomerate with nine subsidiaries or sponsored institutions or joint ventures in India and abroad. The Bank operates over 5841 branches spread across all geographical segments. In this article, we look at the bank loan scheme for taxi operators in Mumbai.
Loan Eligibility
The bank loan for taxi operators scheme is available from Canara Bank only in the Mumbai Circle to help taxi operators comply with the Court order for replacement of old taxis with new taxis in Mumbai. Hence, the scheme provides need based term loan to taxi operators having valid new taxi purchase to replace an existing old taxi such as Premier Padmini model.
To be eligible under this scheme, the driver must be residing in Mumbai with a valid drivers license and permit issued by Road Transport Authority of Mumbai. Further, the taxi operator must be a member of a Recognised Taximen Union with whom the Bank has entered into MoU for providing of loan for taxi.
Interest and Repayment
Taxi loan is provided under this scheme at highly competitive rates of base rate + 1%. There is no upfront fee. However, the promoter or taxi driver must contribute 10% of the cost of the vehicle on road as margin money.
The entire loan sanctioned under this scheme must be repaid in 5 years in equal monthly instalments. Further, interest on the taxi loan must be paid as and when due..
Collateral Security
Hypothecation of brand new taxi purchased from the loan is the primary security under this scheme. Further, coverage under CGTMSE scheme is a must. However, there is no requirement for collateral security or third party guarantee.
