SBI Fleet Finance Scheme
SBI Fleet Finance Scheme
SBI fleet finance scheme is aimed at providing loan for transport operators owing fleet of commercial vehicles like trucks, trailers, tankers and buses. State Bank of India, a premier Bank with over 200 years of history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. SBI is the only Indian Bank to be featured in Fortune Global 500 list of companies in 2011 and is ranked 61st in the list of Top 1000 Banks in the World by ‘The Banker’ as on July 2011.
Purpose of the Loan
SBI fleet finance scheme provides loan for new four wheelers like trucks, trailers, tankers, tippers, luxury buses and cars. Finance for fully built vehicles, chassis, body building, road tax, registration and insurance is also available under the scheme. The loan under the scheme is provided as a term loan.
Eligibility Criteria
To be eligible for the SBI Fleet Finance Scheme, the following conditions must be satisfied by the applicant:
- Existing fleet operator (goods or passengers) having a minimum experience of 5 years or more in the industry.
- Fleet operator having an existing fleet of minimum 10 vehicles.
- Small Road Transport Operators will not be eligible under this scheme.
- Loan will be provided for a minimum of 10 new vehicles or minimum loan amount of Rs.50 lakhs.
- Transport operator must hold national or state route permit and other necessary permits / licenses / approvals.
- Satisfactory track record with existing bank or financial institution.
- Income tax payer (Personal & Business).
Amount of Loan
A minimum loan of Rs.50 lakhs to a maximum loan amount of Rs.10 crores can be sanctioned under the SBI fleet finance scheme as a term loan. The repayment period for the loan can be upto a maximum of 66 months. The loan facility would be valid for 6 months from the date of sanction. Collateral security is not required in case of borrowers with excellent track record. In case collateral is required as per bank sanction terms, unencumbered vehicles in the existing fleet (at current resale value) can be offered as collateral.
Vehicles having a tracking device are allowed an additional concession of 0.25% in processing fee. Though tracking device is not mandatory, the capital cost of the tracking device and recurring cost of service providers can be financed under the scheme.
