AUTO LOAN MASTER CIRCULAR

RAJASTHAN MARUDHARA GRAMIN BANK

LOANS AND ADVANCES DEPARTMENT
HEAD OFFICE, JODHPUR

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 INDEX
S. No. Description Page No.
RMGB Auto Loan Schemes 5
1 RMGB Car Loan 5
(a) RMGB Green Car Loan (Electric Vehicle) 7
(b) RMGB Assured Car Loan 7
(c) RMGB Loyalty Car Loan 8
2 RMGB Certified Pre-Owned Car Loan 10
3 RMGB High Value Super Bike Loan 13
4 RMGB Two-Wheeler Loan 14
Auto Loan – General Instructions 16
1 Authorized Branches 16
2 Pre-Sanction Survey & KYC 16
3 Verification/Online verification of documents 16
4 Verification of Margin Money 16
5 Disbursement 16
6 Security 17
7 Post-Sanction Inspection 18
8 Repayment 18
9 Pre-payment Penalty 19
10 Foreclosure charges 19
11 Penal Interest on irregular loans 19
12 CIC Score Guidelines 20
13 Control report 20
14 Insurance 20
15 Car Loan Frauds 20
16 Miscellaneous 23

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 LIST OF ANNEXURES
Annexure Description Page
No. No.
1 Retail Scoring Model 24
2 Product Codes 30
3 Online Verification of Documents 31
4 Payment of Service Charges to Car Dealers & DSEs 35
5 Checklist of Documents to be submitted along with Loan 36
Application Form
6 RMGB Certified Pre-Owned Car Loan – Undertaking from 38
dealer
7 RMGB Loyalty Car loan – Letter from customer to exercise 41
lien on the title deeds of the property already deposited
8 Assessment of Income 42
9 Pre-Disbursement Intimation from Branch to Dealer 43
10 Post-Disbursement Letter from Branch to Dealer 45
11 Interview Form- For Car Finance to Agriculturists 47
12 Income Calculation Sheet for arriving at NAI from 49
Agriculture & Allied Activities

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 AUTO LOAN
In Auto Loan, mainly two products viz. Four-Wheeler and Two-Wheeler are considered.
There will be 4 variants under RMGB Car Loan Scheme:
1. RMGB Car Loan
2. RMGB Green Car Loan
3. RMGB Assured Car Loan
4. RMGB Loyalty Car Loan
(1). RMGB Car Loan
1. Purpose: For purchase of new Passenger cars, Multi Utility Vehicles (MUVs) and
Sports Utility Vehicles (SUVs).

2. Eligibility: Regular employees of State/Central Govt., Public Sector Undertakings,

corporations, private sector companies, reputed establishments and pensioners.
Professionals, Self-employed, Businessmen, and others who are income tax
assesses.
Persons engaged in agriculture and allied activities.

3. Age: 21-67 years, at the time of sanction of loan. The repayment must be done
before the borrower attains the age of 70 years.
In case of Joint accounts, repayment period will be counted on the basis of
applicant with higher age.

4. Income (including Co-applicant, if any):

For salaried: Net Monthly Income (NMI) > 25,000 (NAI > 3,00,000/-) Income from
other sources like Bank Interest/Dividend/Rent can be added.
Self-employed, Professionals, Proprietor / Partner and Businessmen: Net Profit
or Gross Taxable income of Rs. 3,00,000/- p.a. Income from other sources like Bank
Interest/Dividend/Rent can be added.
Agriculturists: Net annual income of Rs. 4,00,000/-.

In case of agriculturists, other than the agricultural income, the borrower should
have additional income stream sufficient to take care of monthly installments. Net
monthly income of applicant(s) should be at least 2 times of EMI. The Net Annual
Income will be arrived at based on the nature of the activity, land holding, cropping

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 pattern, yield etc. Other than the agricultural income, the borrower should have
additional income stream sufficient to take care of monthly instalments.
The person whose income is included will join as a co-borrower. The maximum number
of applicants should be restricted to two.
(Co-applicant can be Parent, Spouse, Son, Daughter, Brother or Sister).
For Assessment of Income: Please refer Annexure-08

5. Loan Amount: Minimum: Rs. 1.00 Lakh

Maximum Amount
Salaried: Up to 48 times the Net Monthly Income.
Self-employed, Professionals, Proprietor and Businessmen: Up to 4 times the Net
Profit or Gross Taxable Income per annum as per ITR.
Agriculturists: Up to 3 times the Net Annual Income
Project Cost (On-road price) include ex-showroom price, road taxes, insurance. The
cost of accessories, extended warranty and total maintenance should not be included
in the project cost. In no case, the Loan amount should go beyond 100% of Ex-show
room Price of the Vehicle.

6. EMI-NMI:

Net Annual Income EMI/NMI not to exceed

Up to Rs.5 Lakhs 50%
Rs. 5- 10 Lakhs 60%
Above Rs. 10 Lakhs 70%

7. LTV & Margin: 85 % of On-road Price (Loan Maximum up to 100% of Ex-show room
price)
Margin: 15% of on-road price.

8. Rate of Interest: As per extant guidelines of the Bank instructed from time to
time.

9. Processing fee: Fixed amount Rs. 1500/- + GST

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10. Term: Minimum: 3 Years; Maximum 7 Years or Up to the age of 70 Years whichever
is earlier. In case of co-borrower, repayment period will be counted on the basis of
applicant with higher age.

11. Security: Hypothecation of vehicle

12. Co-borrower: Maximum number of applicants restricted to two.

13. Risk Scoring Model: Applicable (Please refer Annexure-1).

14. Pre-Sanction Survey: Applicable (Please refer General Instructions).

15. Post Sanction Inspection (PSI): Applicable (Please refer General Instructions).

(A) RMGB Green Car Loan (For Electric vehicle):

1. Term: Minimum: 3 Years; Maximum: 8 Years.

2. Rate of Interest: Concession of 25 BPS in applicable rate of interest for RMGB Car
loan.
Other Terms and conditions of Car Loan Scheme will remain same.

(B) RMGB Assured Car Loan

1. Eligibility: Existing customers with unencumbered Fixed Deposits.

2. Age: Minimum age of the borrower: 18 Years. Maximum: No stipulation.

3. Income: Not stipulated. Income declared by applicant will be accepted. Loan

amount is based on the fixed deposit value.

4. Loan Amount: On-Road price of the vehicle. Minimum Rs. 2 Lakh; Max: 100% of FD
value.

5. EMI/NMI & Risk Scoring Model: Not Applicable

6. LTV, Margin & Processing fee: NIL

Parameters viz. Purpose, Rate of Interest, Loan Term, On Road Price, Pre-sanction
survey, Post sanction inspection will be applicable as in RMGB Car Loan Scheme

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Important Instructions:
The car loan under the scheme will be sanctioned to the customer having TDR/STDR
in his/her own name. Deposit in joint names with only two persons will be accepted.
In case of joint deposit, one will be primary borrower and other will be co-borrower.
Third party TDRs/STDRs will not be accepted. Documents necessary for creation of lien
to be obtained.

a) During continuation of car loan, partial withdrawal of TDR will not be allowed.
Forfeiture of the Deposit may be permitted for liquidation of the entire loan, at the
request of the borrower.

b) CIC scrutiny to be conducted to ensure that the applicant is not a defaulter to

Banks/Financial Institutions. Applicants with CIC scores less than 600 and those in -1,
or 0 categories will also be eligible.

(C) RMGB Loyalty Car Loan

1. Eligibility: Individuals including joint borrowers who have;

a) Availed the housing loan from RMGB,
b) Satisfactorily serviced the loan for at least one year after the moratorium period,
c) Taken the possession of the house,
d) Created valid equitable mortgage and
e) Maintained security margin of at least 15% for purchase/construction of
plot/house.
f) Completed all terms and conditions regarding sanction of housing loan.

2. Income: Minimum Net Annual Income of the borrower will be Rs 2.00 Lacs.

3. Loan Amount:
a) 75% of present market value of the house property less present outstanding in the
Home Loan account and Home Equity, if any.
b) EMI/NMI ratio will be as per respective car loan scheme.
c) 100% of Ex-showroom price of the vehicle.
The permissible loan amount will be the lowest of the above three.

4. LTV & Margin: Maximum up to 100% of Ex- showroom price.

Margin: Nil

5. Processing fee: 0.25% of the loan amount

Minimum: Rs. 500/- + GST, Maximum Rs. 5000/- + GST.

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6. Rate of Interest: 10 bps concession in interest applicable to RMGB Car Loan.

7. Security: In addition to hypothecation of vehicle,

i) Additionally, the equitable mortgage taken, for the housing loan should be extended
to cover the new car loan. Fresh Search Report has to be obtained from date of last
search report.
ii) However, in view of high stamp duty in some of the states, extension of mortgage
will not be mandatory for car loan up to Rs. 10.00 Lakhs. However, letter of lien on
title deed needs to be obtained (As per Annexure - 7).
iii) The title of the mortgaged property will be released only after the closure of Car
Loan under the scheme irrespective of the quantum of car loan.

Parameters viz. Purpose, Age, EMI/NMI, Loan Term, Risk Scoring Model, Pre-
sanction survey, Post sanction inspection will be applicable; as in RMGB Car Loan
Scheme.

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2. CERTIFIED PRE-OWNED CAR LOANS

Sr. No. Features of the Scheme

1. Purpose: Term Loans for purchase of Certified Pre-Owned cars. The major
car manufacturers that have established such certified Pre-owned car
outlets through their dealer network only to be financed like Maruti True
Value, Honda Auto Terrace, H Promise, Tata Assured, Ford Assured, Toyota
U Trust, Mahindra First Choice and BMW Infinity Cars and all other OEM
backed Certified Cars.
2. Age of the vehicle: Not more than ten years old.
3. Product Code: 6250-5011
4. Tenure: 10 years minus the age of the vehicle at the time of applying for
loan subject to a maximum tenure of 5 years.
5. Duplicate RC book: Financing of old vehicles on the basis of duplicate
Registration Books will not be entertained.
6. Maximum Number of ownership: The ownership vehicle which is put up for
sale under certified pre owned should not have changed more than 2 times.
7. Eligibility:
Age: 21-67 years. (Loan must be fully repaid before the borrower attains the
age of 70 years.)
Loan must be fully repaid before the borrower attains the age of 70 years.
Loans can be granted by sanctioning authority to individuals who have
sufficient, regular and continuous source of income for servicing the loan
repayment beyond 67 years.
Permanent employees of State/Central Govt., Public Sector Undertakings,
corporations, private sector companies, and reputed establishments are
eligible under the scheme. Professionals, self-employed and others who are
income tax payers and persons engaged in agriculture and allied activities
can also avail of the loan facility.
8. Income:
Salaried: Net annual income of applicant and/or co-applicant if any,
together to be ₹3, 00,000/- and above.
Net monthly income of applicant(s) should be at least 2 times of EMI
Self-employed and Professionals & Others:
Net annual income of applicant and/or co-applicant if any, together to be
₹3, 00,000/- and above for the last year as per income tax return.
Net monthly income of applicant(s) should be at least 2 times of EMI.
Persons engaged in agriculture and allied activities: Minimum Net Annual
Income of applicant and/or co-applicant together to be ₹4,00,000/. The Net
Annual income will be arrived at based on the nature of the activity, land
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 holding, cropping pattern, yield etc. Income tax return will not be required.
Net monthly income of applicant(s) should be at least 2 times of EMI. Other
than agricultural income the borrower should have additional income
stream sufficient to take care of monthly instalments. Loan to be repaid
within the loan tenure in monthly instalments.
9. Loan Amount
CIBIL Score Maximum Loan Minimum Loan
Amount (Lacs) Amount (Lacs)
>=757 100 3
721-756 100 3
689-720 10 3
-1 10 3

Salaried:
The maximum loan amount that can be granted would be restricted to 30
times the Net Monthly Income of salaried persons.
Others:
Maximum loan amount would be 2.5 times the Net Annual Income.
For agriculturalists the annual net income should be arrived at by branches,
based on the nature of their activity, (i.e., farming, dairy, poultry, orchards)
land holding, cropping pattern, yield, etc. and average level of income
derived there from in the area.
Sanctioning Authority above ROCC would be empowered to permit
deviation, if any, in this regard from case to case basis.
10. Margin: For all Loans margin is 15%
11. EMI/NMI: 50%
12. Valuation: Invoice Price
13. Repayment: In all cases i.e. salaried, self-employed, professionals,
businessmen, agriculturists etc. the repayment in form of EMI should
coincide with the loan tenure sanctioned i.e. 10 years minus the age of the
vehicle at the time of applying for loan subject to a maximum tenure of 5
years.
14. Interest Rate: As per extant guidelines issued from time to time
15. Takeover: Not to be considered
16. Processing Fee: 1.25% of the loan amount + GST
Minimum: Rs. 3750/- + GST
Maximum: Rs. 10,000/- + GST
17. Application of penal interest: 2% p.m. (over and above the applicable
interest rate) on the overdue amount for the period of default.
18. Documents:
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At the time of application:
a. Original Copy of Pro forma Invoice (Quotation)
b. Margin Money Receipt (Original)
c. Copy of Seller’s RC Book
d. Copy of Seller’s Motor Insurance
e. Passport Size Photographs (2 Nos.) Borrowers/Guarantors (Wherever
applicable).
f. Statement of Bank Account for last 6 months *(Wherever applicable)
g. Form 16 or IT returns for last 2 years (wherever applicable)
h. All other Documents as per RMGB Car loan scheme, viz. KYC & Income
documents.
*Account with RMGB – Branch will print the statement of account and
verified statement of account will be kept with loan documents for audit
purpose.

At the time of Disbursement:

a. Sale Agreement between Dealer and Seller
OR
Undertaking from seller that he/she has sold the vehicle, received sale
consideration and has no claim whatsoever.
b. Undertaking from the Dealer to the financier.
c. Hypothecation clearance letter from Bank along with Copies of HPTER
(Form 35), wherever applicable.
d. Correspondence with the Insurance Company regarding change in
insured’s name and financier.

Immediately after Disbursement:

a. Vehicle Delivery Confirmation
b. Form B extract from RTO
c. Receipt of fees paid by dealer to RTO for transfer of ownership.

Thereafter within 30 days after Disbursement:

a. Copy of RC Book with Bank’s charge noted therein
b. Copy of Insurance Policy with Bank’s Hypothecation clause.

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3. HIGH VALUE SUPER BIKE LOAN

1. Purpose: For purchase of super bikes.

2. Age: 21-57 years (Loan must be fully repaid before the borrower attains the age
of 60 years)
3. Income:
A) Salaried: Net Annual Income of applicant and/or co-applicant if any, together
should be Rs 3.00 Lacs and above.
B) Self-employed, Professionals, Proprietary/Partnership firms and Businessmen:
Net Profit or Gross Taxable income of Rs. 3.00 Lacs p.a. (income of co-applicant can
be clubbed together for Self-employed, Professionals and Businessmen) as per ITR.
C) Agriculturists: Net annual income of applicant and/or co applicant together to be
Rs. 4 Lacs.

4. Minimum Loan Amount: Rs.1.50 Lacs

5. Maximum Loan Amount: Rs. 25.00 Lacs
6. EMI/NMI:
➢ Up to Rs. 10 Lakhs, should not exceed 50%
➢ Above Rs. 10 Lakhs, should not exceed 60%

7. LTV: 85 % of Ex-show room Price

8. Margin: 15% of ex-showroom cost of the vehicle.

9. Rate of Interest: As per extant guidelines instructed by Bank from time to time
10. Processing fee: 2% of the loan amount + GST; maximum Rs. 10000/-
11. Term:
Maximum: 4 years for all categories of borrowers.

Parameters viz. Eligibility, Pre-sanction survey, Post sanction inspection,

Authorized branches will be applicable; as in RMGB Car Loan Scheme.

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4. TWO-WHEELER LOAN SCHEME
S. No. Parameter Description
1. Purpose To provide finance for purchase of new Two-wheelers
viz. scooter/motorcycle/ moped/battery-
operated/electric vehicles of reputed make
2. Eligible customers 1. Salaried
2. Professionals, Self-employed and other IT assesses.
3. Persons engaged in Agriculture and Allied activities.
3. Age 21-57 Years
4. Repayment 36 and 48 Months
Period Subject to condition, Loan Account must be closed on or
before the borrower attaining the age of 60 years.
5. Net Monthly  Minimum Net Monthly Income (NMI) of the
Income applicant should be. ₹ 12,500 (i.e. ₹ 1,50,000 Net
Annual Income)
 For applicants, other than salaried, Net Monthly
Income is *NAI /12
* NAI: Net Annual Income
6. Loan Amount  Min Loan: ₹.0.20 lakh
 Max Loan: ₹ 3.00 lakh
Subject to maximum, 4 times of Net Monthly Income
and applicable EMI/NMI Ratio
7. EMI/NMI Ratio Up to 50% for all applicants
8. Margin 85 % of On-Road price of vehicle
9. CIC Score As per extant guidelines of the Bank
10. Interest Rate As per extant guidelines issued by Bank from time to
time
11. Repayment Mode SI or ECS/NACH
12. Security I. Hypothecation of Vehicle and noting of charges in the
books of RTO.
II. Branches to download RC from vahan.nic.in, post
registration of vehicle and place the report along with
loan document.
13. Penal Interest on  For Loans above Rs.25000/-, if the irregularity
Irregular Loans exceeds EMI or Instalment amount, for a period of
one month, then penal interest would be charged
@2% per month over and above the applicable

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 interest rate on the overdue amount for the period
of default
 If part instalment or part EMI remains overdue, then
penal interest should not be levied.
14. Pre-Sanction Pre-sanction Survey of Residence and Workplace to be
Survey conducted on standard format by Bank official.

15. Post sanction For Standard Asset accounts, periodical inspections will
Survey be waived after the initial inspection. However, if there
is a default of 1 monthly instalment, inspection would
be required. In case of NPA accounts inspections would
be made twice a year. Inspection register will be
maintained properly.
16. Processing Fees 2% of loan amount + GST, subject to minimum ₹1,000/-
+ GST.
17. Insurance Vehicle to be insured for 3 years upfront, with
hypothecation clause in favor of the Bank.
18. Risk-Scoring Please refer Annexure-1
Model
19. Authorized Car Loan Hub Branches/ AMSHs/RBOs
Branches

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 AUTO LOANS - GENERAL INSTRUCTIONS

1. Authorized Branches
All RBOs, AMSHs and identified car-hub branches are authorized to process,
sanction and disburse car loans as per the delegation of power.

a) Place of availing Loan: Permanent Place of residence/ Place of Posting or Business

b) Processing Time: The maximum time schedule for receipt of application and
sanction/disbursal of the loan is 2 days.
2. Pre-sanction survey and KYC
To be conducted as under:
a) Any one official from Branch/Empaneled agency will visit the customer for KYC &
Pre-sanction survey. The KYC, Pre-sanction survey & opinion report (Opinion Report
wherever applicable) prepared by the official under his/ her signature & seal will be
acceptable to sanctioning authority.
b) Pre-sanction Survey format has been circulated via Circular No. 172/Adv-
40/2022-23 dated 29.11.2022.

3. Verification /Online verification of documents:

While analyzing the cases of frauds that surfaced in car loans, it has been observed
that in most of the cases the officials have collected photocopy of papers relating to
KYC and income proofs but did not scrutinize its contents to test its authenticity.
As per extant instructions, documents accepted for proof of identity should be
verified through internet using website of public/concerned authority wherever
such information is available online.
4. Verification of margin money paid:
i) For cheque payment: To be verified from account statement.
ii) For cash payment: Stamped receipt to be obtained from the dealer.
Statement of account to be verified from which the cash has been withdrawn for
payment of margin.
5. Disbursement:
Disbursement is to be made only to dealers account through NEFT/RTGS without
any manual intervention. It is to be ensured that payment is made to Authorized Car
Dealers. Meanwhile, if any additions/changes/deletions are to be made in
Authorized dealers list, branches would be required to take permission from
respective RBOs regarding the same. RBOs should take due-diligence before giving
permission of payment to the proposed car dealer. RBOs would be required to
consolidate the data of newly approved car dealers and send the same on quarterly
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basis to Head Office to include the name of the car dealer in the authorized car
dealers list for review/consolidation at Head Office level. The guidelines regarding
the same were issued via Circular No. 51/Adv-15/2022-23 dated 24.06.2022. The
updated list of authorized car dealers is issued on Bank’s portal from time to time.
6. Security: Hypothecation and Registration of Vehicle
6.1 Hypothecation of vehicle
Hypothecation of vehicle (with Bank’s hypothecation charge) downloaded from
vahan.nic.in (in lieu of RC book) is to be taken. The details of vehicle from the
downloaded extract can be keyed in CBS. The Vahan search is compulsory in all
cases, even when RC Book is submitted by the borrower.
No other security is to be obtained. Any other security including third party
guarantee may be obtained only if required in particular product.
Post disbursement, the website vahan.nic.in is to be visited frequently to verify the
updation of RC details of the vehicle financed by the Bank.
Post 30 days of disbursement, the vehicle registration details from the website
‘vahan.nic.in’ should be checked and if the RC details are not updated on the site,
the Branch official needs to connect the Dealer/borrower and record the update
with car loan documents.
Branches/AMSHs/RBOs to ensure complete particulars of registration with Bank’s
hypothecation charge including RC obtention date to be captured in CBS and
monitored. The procedure of capturing details in CBS has been issued via Circular
No. 28/Adv-08/2021-22 dated 02.06.2021.
In case, the details of vehicle registration/bank’s charge are not available on
vahan.nic.in and RC book is also not submitted by the borrower, the same can be
obtained from RTO of the jurisdictions on payment of required fees.
6.2 Verification of Registration of Vehicle:
The verification of vehicle registration details from the website ‘vahan.nic.in’ has
since been made available to financiers by Government of India.
Our Bank will be registered shortly and the procedure of verification of vehicle
registration details from the website will be issued shortly.
6.3 Penalty for Non-Registration /Non-Hypothecation of Vehicle:
If the borrower fails to get the vehicle registered, with hypothecation charge in favor
of the Bank, within 120 days from the date of disbursement or Bank’s hypothecation
charge is vacated before liquidation of the loan, charge of Rs. 2500/- (+GST) per
month to be recovered from borrower till Bank’s hypothecation charge is noted by
RTO, after sending due notice to the borrower.

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Any unauthorized release of hypothecation charge from RC Book, should be
immediately taken up with the respective RTO and FIR should be filed against the
borrower.

7. Post-Sanction Inspection (PSI)

Post disbursement inspection of vehicle must be carried out within 15 days from the
date of disbursement in respect of auto loans. For Standard Asset accounts
periodical inspections will be waived after the initial inspection. However, if there is
a default of 1 monthly instalment, inspection would be required.
In case of NPA accounts, inspections would be made twice a year.

7.1 Post-Sanction Activities:

Following post disbursement documents (PDDs) to be obtained from Dealers/
customers and keep them with loan documents:
a) Annexure-10 i.e. “Letter to the dealer” duly acknowledged by the dealer.

b) Tax Invoice: Ex-showroom price and description of the vehicle i.e. make, model
and variant in Tax Invoice should tally with that of pro forma invoice. Any
discrepancy to be brought to the notice of the dealer and seek reimbursement of
price differential on the basis of RTGS/NEFT narration in instruction to beneficiary
and Annexure - 10

c) Copy of Insurance Policy with bank’s hypothecation clause. Vehicle particulars

and cost of vehicle given in insurance policy to be verified with Pro forma and Tax
Invoice. Address given in the insurance policy to be verified with the address in
application form. Insurance company to be telephoned / emailed to confirm the
genuineness of the insurance policy

d) Post Sanction Inspection report of the vehicle.

e) Photograph of the vehicle wherever possible

f) Copy of Form-20 (application for registration of motor vehicle) to be obtained and

ensured that Form-20 contains correct particulars e.g. name, permanent address,
PAN, vehicle description, nature of use i.e. personal or commercial, bank’s
hypothecation clause etc.

8. Repayment
a) The repayment should be fixed on the basis of equated instalments, preferably
with a check off facility/SI/ECS/NACH in the case of salaried persons.

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 b) NACH Mandate, if any, to be forwarded within a day or two of disbursement
of auto loan for activation.

c) At all the centers where ECS/ NACH is active, 3 PDCs to be obtained for initial
repayment.

d) Under check off arrangement, an Irrevocable Letter of Authority is required to

be obtained from the borrower (employee) concerned and a letter of undertaking
is to be taken from the borrower’s employer.

e) In case of Govt. Officers, who are themselves the drawing and disbursing
authorities and take car loans, a Letter of Undertaking need only to be obtained.

f) Repayment of loans to self-employed, professional and businessmen can be

accepted from Cheque drawn from their own or firm’s account after obtaining
the firm’s mandate.

g) For all types of customers including agriculturists, the periodicity of instalments

for repayment should be on monthly basis. In case of agriculturists, other than
the agricultural income, the borrower should have additional income stream
sufficient to take care of monthly instalments.

h) If a borrower remits any amount for credit of his/her car loan account in a
branch other than the home branch, either by way of cash, local cheque or multi-
City cheque, drawn on any Bank, the same may be accepted without collecting
Non-Home Branch charges. However, normal charges may be recovered in case
of outstation cheques which are to be sent for collection.
9. Prepayment penalty:
Prepayment charges will be levied @1% of the pre-payment amount plus GST, in
case of prepayment within 1 year from the disbursement of the loan.

10. Foreclosure Charges:

Foreclosure charges will be levied @1% of the closure amount plus GST, in case of
foreclosure within 1 year from the disbursement of the loan.

11. Penal Interest on Irregular loans:

If the irregularity exceeds EMI or Instalment amount, for a period of one month,
then penal interest would be charged @2% p. m. (over and above the applicable
interest rate) on the overdue amount for the period of default.

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12. CIC Score Guidelines
S. No. Customer Category CIC Score Guidelines
1. Salaried employees/ Score > 600 Clear Sanction
pensioners whose
salaries/pensions are Score < 600, Deviation to be obtained from
being routed through 0 or -1 next higher authority
our branches for the last
6 months
2. All others Score > 650 Clear Sanction
Score < 650, Deviation to be obtained from
0 or -1 next higher authority

13. Control Report:

The control report should be sent to the approving authority on the same day of
sanction of the loan. Copy of Controlled Return should be kept along with the loan
documents. Control Report returned/rejected by the approving authority should be
responded/dealt immediately after properly replying the observations made and/or
acted upon the instructions of approving authority.

14. Insurance:
The vehicle purchased is to be kept comprehensively insured with Banks charge in
the name of the borrower for the market value or at least 10% above the loan
amount outstanding, whichever is higher.
(i) A copy of Insurance policy for 1st year to be obtained and retained with the loan
documents. Borrower is expected to keep the vehicle insured. In subsequent years,
obtention of insurance policy for bank record is waived for loans up to Rs. 20.00
Lakh.
(ii) Insurance details are to be entered/updated in CBS.

15. Car Loan Frauds:

Based on frauds modus operandi in various cases, operating functionaries are need
to exercise caution while processing /sanctioning car loans as mentioned below to
safeguard the Bank interest.
An analysis of the recent fraud cases in Auto Loans in various banks has revealed
that,
✓ The business sourcing activity is not done by the approved & authorized
person/entity viz. Dealer.
✓ In most of the cases the officials have collected photocopy of papers relating to
KYC and income proofs but did not scrutinize its contents to test its authenticity.
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✓ Calculation of income, especially in case of non-salaried customers, has not been
properly done and income documents viz. Bank statements and financial
statements have not been prudently examined.
✓ Quotations are not meaningfully examined. After receiving invoices, they are not
verified with the quotations obtained.
✓ In many cases, Pre-disbursement Intimation (Annexure-10) has not been sent to
the dealers.
✓ Vehicle delivered to the borrower, is not as per the description of the vehicle
mentioned in the Quotation.

Measures/ Tools for prevention of Auto Loan Frauds

S. Reasons for Measures/ Tools
No. Fraud
1. Fake/ Inflated (i) Margin is to be deposited with car dealers by way of
Margin cheque payment or any verifiable means and supported by
Money valid receipts.
Receipt (ii) Payment made by cheques to be verified from account
statement. For cash payment stamped receipt to be
obtained from the dealer and statement of account from
which the cash has been withdrawn for payment of margin
are to be verified.
2. Inflated Pro (i) Price of the vehicle to be verified from the Manufacturer
forma Invoice website.
(ii) Branches to send/ e-mail pre-disbursal letter (Annexure-
9) to seek confirmation from the dealer about genuineness
of quotation. Copy of e-mail sent should be kept with loan
document.
3. Fake Dealer/ (i) The genuineness of the dealer should be duly-verified.
Fake Pro (ii) Confirmation to be obtained from the dealer about
forma Invoice genuineness of quotation. The invoice received after
disbursement should be tallied with the quotation.
4. Diversion of (i) Disbursement is made in CBS by transfer if dealer has
Funds account with us. Where dealers do not maintain an account
with us, the payment is to be made through NEFT/RTGS
only.
(ii) Remittance to dealer through account transfer, NEFT or
RTGS should contain information on standard format as
“Proceeds of car loan of ***********************
(borrower) vehicle Make **************** model
21
 *************** Variant*********** pro forma invoice
No******** Dated **/**/****
On road price Rs*******”.
5. Fake KYC/ The KYC/ ITRs/ Income documents should de duly verified.
ITRs/Income In the case of Businessman, Self-employed and
documents Professionals, the services of Chartered Accountant can be
taken to verify Income/ITR related verification and proof of
the same should be recorded.
However, the final judgement and decision are to be taken
by the Bank Official.
6. Pre-Sanction (i) Pre-sanction survey can be conducted by official from
Survey branch/AMSH/RBO or through verification agency.
(ii) PSS to be done by the verification agency in a standard
format only. Bank official should re-conduct the PSS in at
least 2% of cases.
(iii) If PSS is negative and the loan is still considered for
sanction, in-house pre-sanction survey (by the bank
officials) should be arranged.
7. Post Sanction (i) Post-sanction inspection of the vehicle must be carried
Inspection/ out within 15 days from the date of disbursement in respect
End use of of auto loans.
funds (ii) Post-disbursement intimation letter (Annexure- 10)
should invariably be sent to dealer.
8. Registration i) Branches to verify the Form-20 (Application for
of Registration Certificate of Vehicle) before signing it and
Vehicle/Fake ensure that particulars viz. name, permanent address, PAN,
RC Book vehicle description, Bank’s hypothecation charge, etc. tally
with the details furnished in loan application and copy of
the same should be kept with the loan documents.
ii) The registration of the vehicle to be verified as soon as
vehicle registration number is known or within a month of
disbursement, whichever is earlier and re-verify the
hypothecation details each time when account slips to SMA
0, 1, 2 & NPA.
(iii) Branches to obtain Form-34 (Application to RTO for
making entry of Hypothecation subsequent to registration)
at the time of documentation, as the same is required in
event of the bank’s hypothecation charge is not created or
is vacated without our knowledge by the borrower. Form-
34 will also be required even when the vehicle is auctioned.

22
 (iv) Execution of document has to be done in presence of
bank Official.
9. Fake (i) To establish genuineness of the employer and prevent
Employment/ incidence of fraud relating to fake employer/employment
Employer /income proof, verification of PAN as well as TIN & TAN of
Employer, Businessmen, Self-employed & Professionals
should be ensured.
(ii) Meaningful Pre-sanction survey of workplace to be
conducted.
10. Multiple CIF enquiry to be made while processing the loan to verify
Loans KYC details as per available in CIF.

11. CIC Reports Two reports from CICs to be obtained in case of car loans
above Rs.5 lacs.
12. Non- Deviations from the Bank’s existing guidelines in respect of
Compliance of car loans will be treated as gross negligence.
Bank’s
instructions
and
guidelines by
operating
staff

15. Miscellaneous
a) Maximum Number of car Loans:
At any point of time maximum 3 car loans only should be outstanding in our books.
b) Processing Time:
The maximum time schedule for receipt of application and sanction/disbursal of the
loan is 2 days.
c) Adding back depreciation to the Net Income of businessmen, professionals and
self-employed:
The provision of adding back depreciation to the net income of businessmen,
professionals and self-employed has been withdrawn.

23
 Annexure - 1

Retail Scoring Model:

A) Retail Scoring Models (RSM) for Car Loans
• The parameters considered in the scorecard are important and found to be capable
of predicting risk associated with it.
• Maximum and minimum scores under the revised RSM are 150 and 50
respectively. The score range of 86 and above are under “Clear Sanction” whereas
score range of 85 and below are under “Decline” category.
• The revised and detailed Car Loan scoring model is as under:
S. No. Parameter Min. Score Max. Score Score
for the for the assigned to
parameter parameter sub-
parameters
1. Segment
Small 21
Mid Car 17
11 21
Luxury/Premium 15
SUV/MPV/MUV 11
2. Occupation
Category 1 20
Category 2 1 20 17
Category 3 1
3. Loan Tenure
< 48 months 19
> 48 months and < 72 10 19 15
months
> 72 months 10
4. EMI/NMI
< 20% 18
> 20% and < 30% 11 18 16
> 30% and < 40% 14
> 40% 11
5. LTV
24
 < 50% 23
> 50% and < 60% 11 23 19
> 60% and < 75% 14
> 75% 11
6. CIBIL Score
> 822 12
< 822 (721-821) 10
< 721 (689-720) -5 12 6
< 689 (606-688) 0
< 606 -5
7. Relationship with Bank
Credit relation with 11
satisfactory performance
(standard in our books for
the last 12 months) 3 11
Deposit (SB/ CA/ TDR) 8
relationship for at least 1
year
New customer 3
8. Age
> 50 years 11
> 40 years and < 50 years 3 11 9
> 30 years and < 40 years 6
< 30 years 3
9. Residence Type
Own House 10
Parental house/Employer
provided accommodation 5 10 7

Rented 5
10. Aadhar Card
Submitted 0 5 5
Not Submitted 0
50 150
25
Further the parameters i.e., Segment and Occupation have been bifurcated as
under:
Segment
Small Car Mid Car Luxury/ Premium SUV/ MPV/ MUV
Segment
Ex-showroom Ex-showroom Ex-showroom Sport Utility Vehicles/
price: Up to 7 price: Greater price: Greater Multi-purpose
lakhs than 7 lakhs up to than 15 lakhs Vehicle/ Multi-utility
15 lakhs Vehicle

Occupation
Occupation Category
Central/State Govt. Services, Services in Defence Establishment, Category 1
Services in PSU
Retired, Services in Private Establishment, Medical Profession, Category 2
Engineering/ Architect/ Technical/ Consultant, CA/ ICWA/
Taxation/ Finance
Student, Artist/Writer etc., Artisan/ Craftsman, Share & Stock Category 3
Broker, Home-maker, Legal Profession, Journalist, Industrialist,
Capital Market maker, Business in Trade Sector, Business in
Service Sector, Others

Assumptions:

1. It is presumed that the minimum eligibility criteria have been adhered to and
therefore, the scoring models do not fix any hurdles rates for such criteria. For
example, no upper age limit is fixed as a hurdle rate in the scores, as it is
presumed that loan would not be granted to persons beyond the upper age limit
prescribed or would only be given after obtaining approval for deviation.
2. No loans should be sanctioned without application of the Scoring Models.
3. No additional documents other than those stipulated in the respective lending
schemes should be demanded because of application of the scoring models.

26
B) Retail Scoring Model for (RSM) for Two-Wheeler and Superbike
The parameters considered in the scorecard are important and found to be capable
of predicting risk associated with it.
• Maximum and minimum scores under the revised RSM are 150 and 57
respectively. The score range of 86 and above are under “Clear Sanction” whereas
score range of 85 and below are under “Decline” category.
• The revised and detailed Car Loan scoring model is as under:

S. Parameter Minimum Maximum Score

No. Score for Score for assigned to
the the sub-
parameter parameter parameters
1. Segment (Applicable for two-wheeler)
< 200 cc 21
200 cc – 300 cc 15 21 17
> 300 cc 15
Segment (Applicable for super-bike)
Small Bike (Ex show room price 21
upto 5 lacs)
Mid Bike (Ex show room price 15 21 17
greater than 5 lacs upto 10 lacs)
Premium (Ex show room price 15
greater than 10 lacs)
2. Occupation
Category 1 20
Category 2 1 20 17
Category 3 1
3. Loan Tenure
< 24 months 19
> 24 months and < 48 months 10 19 15
> 48 months 10
4. EMI/NMI
< 20% 18
27
 > 20% and < 30 16
> 30% and < 40% 14
11 18
> 40% and < 50% 11
5. LTV
< 50% 23
> 50% and < 60% 14 23 19
> 60% and < 85% 14
6. CIBIL Score
> 812 22
< 812 (731-811) 10
< 731 (700-730) 6
-5 22
< 700 (628-699) 0
< 628 -5
New to Credit (-1) 6
7. Relationship with Bank
Credit relation with satisfactory
performance (standard in our 11
books for the last 12 months)
Deposit(SB/CA/TDR) 3 11 5
relationship for at least 1 year
New customer 3
8. Age
< 30 years 11
> 30 years and < 40 years 9
3 11
> 40 years and < 50 years 6
> 50 years and < 60 years 3
9. Aadhar Card
Submitted 0 5 5
Not Submitted 0
57 150

28
Further the Occupation parameter has been bifurcated as under:
Occupation Category
Central/State Govt. Services, Services in Defence Establishment, Category 1
Services in PSU
Retired, Services in Private Establishment, Medical Profession, Category 2
Engineering/ Architect/ Technical/ Consultant, CA/ ICWA/
Taxation/ Finance
Student, Artist/Writer etc., Artisan/ Craftsman, Share & Stock Category 3
Broker, Home-maker, Legal Profession, Journalist, Industrialist,
Capital Market maker, Business in Trade Sector, Business in Service
Sector, Others

29
 ANNEXURE- 2
PRODUCT CODES
S. No. Product Code Product Description
1. 62505012 TL-RMGB CAR LOAN
2. 62505011 TL- FOUR WHEELER(USED)
3. 62505018 TL-ASSURED CAR LOAN
4. 62505017 TL-LOYALTY CAR LOAN
5. 62505022 TL-GREEN CAR LOAN
6. 62505010 TL-TWO WHEELER
7. 62505023 TL-HIGH VALUE SUPER-BIKE

30
 Annexure – 3
Online Verification of Documents
Check List for Auto Loan Documents for verification by Processing/ Sanctioning
Officer:
S. Websites for Verification What can be What to Result of
No seen at be online
. website verified verification
1. https://www.incometax.gov PAN Number, PAN of
.in/iec/foportal/ Name, IT Borrower
-> Select know your Jurisdiction and PAN
jurisdictional A.O which may of
approximately employer
match that as per
given in ITR of Form 16
borrower etc.
2. https://www.incometax.gov TAN is TAN of
.in/iec/foportal/ applicable to borrower
->Select know your TAN those who are and TAN of
supposed to employer
deduct TDS i.e. as per Form
if Borrower 16
deducts TDS as
well as
employer
3. https://www.tinxsys.com/Ti TIN- TIN of
nxsysInternetWeb/ind Businessman/ borrower
Self Employed/
Professional
who pay VAT
will have TIN
4. https://cbec- Businessman/ STRN of
easiest.gov.in/EST Self borrower
Select -> Assessee Code Employed/Prof
Based Search essional:
Subject to
service tax will
have Service
Tax Reg. No.

31
5. https://contents.tdscpc.gov.in/
Form 16 from Verify with
Select from the top -> Tax Traces 7-digit
Payer -> Select from the left certificate
hand side column -> View no. on form
TDS/TCS Credit -> Select -> 16
Verification code -> Form 16 Check with
Verify TDS Certificate Manual the
(Non-Traces) employer/
deductor
Probe
deeply.
6a. https://www.incometax.gov Status of Income tax
.in/iec/foportal/ Acknowledgem return
Select -> ITR-V Receipt Status ent receipt electronical
(ITR-V) can be ly filed by
verified borrower
6b. Income Tax Return filed manually at ITO Probe
Deeply
6c. If Income Tax Return shows Tax as payable please obtain and verify TAX
paid Challans

7. https://tin.tin.nsdl.com/oltas/ser Tax Paid Of the

vlet/QueryTaxpayerAjax Challan borrower

8. (a) CA membership no: Chartered Of the

www.icai.org Accountant borrower
Select -> members-> membership
members Directory search - number Contact CA to
> As on Date-> Search verification: confirm the
members database by Balance B/S & P/L
Membership No. – As on sheet & P/L
date should be
signed by CA
(b) CA’s Firm Regd. with his/her
Number: verify on membership
www.icai.org number and
submitted
Select -> members-> List of along with
Firms as on …….. ITR.( Balance
sheet & P/L
requirement
32
 is Not
Applicable
for New
Loans)
9. Voter ID (if submitted) – Visit the site:
http://eci.nic.in/eci/eci.html
(i) Select YOUR NAME IN VOTERS LIST -> Select State -> Feed in
electoral photo ID card number (even if only ID card number is
fed in it accepts it) -> Select Search
OR
(ii) Select NATIONAL ELECTORAL SEARCH (it takes time to load)
It will give 2 options (1) SEARCH BY DETAILS (2) SEARCH BY EPIC
-> Select SEARCH BY EPIC -> Feed in electoral photo ID card
number
If it does not give information then SEARCH BY DETAILS
10. Telephone Bill: If MTNL/BSNL bill is submitted verify in their site
(i) BSNL Landline connection on – www.bsnl.co.in
11. Dealer- Verify dealer’s contact number from Google search,
Manufacturer’s website etc. and contact him to verify pro forma
invoice and account number. The Contact Number given in pro
forma invoice may be incorrect if dealer is not genuine.
12. Photo of delivery of vehicle- As most of the dealers take
photograph of the purchaser with vehicle at the time of delivery,
kindly request them to send the same and keep it with
concerned loan papers.
13. Dealer- E-mail to be sent to dealer seeking e-mail confirmation
on the same before remitting the amount. Also include photo of
delivery in the said e-mail.
14. Vehicle Registration Number- Verify on Vahan.nic.in
15. Insurance Policy- Speak to concerned insurance company
16. Price- Compare Tax Invoice with Pro forma Invoice, if ex show
room price of the vehicle in Tax Invoice is lower than that in Pro
forma invoice, please ask the dealer to refund the difference and
do not pay him commission till refund is received.
17. If NACH applicable- Send NACH mandate immediately on
disbursement for activation to avoid NPA.
18. RC- Follow up for RC book with Bank’s hypothecation clause and
charge

Name of the Applicant/Co-applicant/Guarantor: ___________________________

33
 Place: ________________ Signature

Date: _________________ Name of the Officer: ______________

Designation: ____________________

Note:
i. KYC and Income Documents are to be verified invariably in internet wherever
possible.
ii. Probe deeper if inconsistencies and computational errors are found in
documents
iii. Most of income related registration no. like PAN/ TAN/ TIN/ Tax Challans can be
easily verified in internet to find out its authenticity. Hence, it is placed higher in
the check list.
iv. This check list is supplementary to Pre-Sanction Survey & post sanction
inspection and it is to be kept with the loan papers.
v. This check list is supplementary to verification, if any, done by outside agency.
vi. The check list given above is only indicative and not exhaustive.
vii. Pre-sanction survey and Post sanction inspection are to be done meticulously.
viii. Print out of the online verification output duly signed by processing/sanction
officer is to be kept along with pre-sanction survey /post sanction inspection for
future reference.

34
 Annexure - 4
Payment of Service Charges to Car Dealers & DSEs
The service charges payable to Car dealers & DSEs are as under:
Payments to Payout Structure
Dealers & DSEs Maximum 2% of the loan amount
1. Dealer: 1.25%
2. DSE: 0.75%
Guidelines:
1. Service charges are payable only when car loan applications are sourced by car
dealers to the Bank.
2. Service Charges are inclusive of GST.
3. DSE Payout may be merged with the Dealer Payout wherever desired and paid
directly to the Dealers. Further, the respective RMs are authorized to change
the structure (Dealer/DSE) as per suitability/requirement of specific dealer
within the overall ceiling of maximum 2%.
4. Further, before release of payouts to the Dealers & DSEs, ensure to receive
Post-Disbursement Documents i.e., photograph of delivery of Vehicle, Tax
Invoice, Copy of Insurance Policy with Bank’s hypothecation clause, Copy of RC
book with the Bank’s hypothecation clause, Copy of receipt of payment of Road
Tax and Registration Charges etc.
5. Service Charges will not be payable on Car loans extended to our staff
members.
6. Service Charges will not be payable on car loans sourced by the branches.
7. RBOs should review the service charge annually at the end of the Financial Year
preferably in the month of April-May so that business sourced from Dealers &
DSEs can be reviewed and appropriate action for car loan growth can be
initiated.

35
 Annexure - 5
Checklist of Documents to be submitted along with Loan Application Form

General documents applicable to all (Self-attested Documents)

Pan card(Mandatory)
Proof of Identity (OVD) Any One
Proof of Residence (OVD) Any One
Statement of Bank account for last 6 months (Wherever applicable)*
Original Copy of Pro forma Invoice (Quotation)
Margin Money receipt (Original)
Passport size Photographs (2 No.) Borrowers/ Guarantors (Wherever
applicable)
Post-dated Cheques (3) for initial repayment in case repayment mode is
NACH/ECS
*Account with RMGB- Branch will print the statement of account and verified
statement of account will be kept with loan documents for audit purpose.
Additional Documents
For Salaried Customers (Self-attested documents)
Latest Salary Slip for one month
Form 16 or IT Returns for last 2 years

For Self-employed/ Professionals/ Businessmen (Self-attested documents)

Business Address proof
Photocopy of certificate of Practice (if applicable)
Business Proof (GSTIN No, Shop Act.)
IT Returns for last 2 years
TDS Certificate (Form 16A, if applicable)

For Agriculturists (Self-attested documents)

Documents showing Land holding
Documents showing Cropping pattern
Interview Form for Agriculturists

36
For Guarantors
Signature identification from bankers of guarantor
A copy of passport/ voter’s ID card/PAN card
Proof of Residence

Relaxation may be permitted by obtaining ITR/Form 16 for 1 year by one step

higher sanctioning officer, provided they are satisfied about the genuineness of
source, amount and continuity of income and repayment capacity of the borrower
over the loan tenor. In all such cases, the basis for income verification should be
properly recorded on the loan appraisal.

37
 Annexure - 6
Applicable to RMGB Certified Pre-Owned Car Loan Scheme
(Undertaking from the Dealer on his/her Letter-Head)

Date: _______________

Rajasthan Marudhara Gramin Bank

Branch_______________________

Dear Sir/Madam,
Subject: Sale of Certified Pre - Owned cars
1. We at ___________________________________ (Dealer name) carry on the
business of purchase and sale of pre-owned (used) cars. We selectively refurbish
a portion of our stock ___________________** and after certification by the
engineer from ___________________________* market and sell these cars to
the intending purchaser under the mark _______________________*.

2. Before we purchase pre-owned car due care is taken to verify the ownership
status of the car and identity and address proof of the intending seller(s). After
said verification we make payment on account of consideration for sale to the
said intending seller(s) against which the said intending seller(s) issue the
payment receipt in the name of M/S _________________________________
(Dealer Name). The intending seller(s) hand over possession of their pre-owned
vehicle to us against which we issue delivery receipt to the intending seller(s).

3. The said intending seller(s) fills its particulars in FORM 29 (NOTICE OF TRANSFER
OF OWNERSHIP OF MOTOR VEHICLE) and FORM 30 (APPLICATION FOR
INTIMATION AND TRANSFER OF OWNERSHIP OF MOTOR VEHICLE) as prescribed
under the provisions of the Central Motor Vehicles Rules 1989. The intending
seller(s) has/have authorized us to sell the cars and execute the required
documents on its part and submits the original registration certificate of its pre-
owned Vehicle(s) to us. In case, any pre-owned vehicle(s) is hypothecated the
intending seller(s) also submit No Objection Certificate from the earlier Finance
Company/Banks, as the case may be, to us.

4. At the time of selling any pre owned ______________________** vehicle which

has been refurbished and certified by ______________________* engineer we
raise our invoice upon the buyer. In case any intending buyer of such pre owned

38
 certified __________________** vehicle desires to take loan for purchasing any
pre owned ______________________**vehicle, we specify the loan amount
and the margin money in our invoice.

5. We will provide you the details of _____________________* Certified pre-

owned vehicles like registration no. engine no., chassis no. whether
comprehensive insurance is available for the vehicle etc. which may become
subject matter of sanction of loan by RMGB, as and when the requirement may
arise during the course of business.

6. We also undertake to submit to you the copy of RC Book containing charge in

favor of Rajasthan Marudhara Gramin Bank and valid insurance policy containing
Bank’s hypothecation clause in favor of Rajasthan Marudhara Gramin Bank
within 30 days. In the interim, we undertake to submit to you Form B extract
from RTO evidencing transfer of ownership and charge in favor of State Bank of
India and copy of letter to insurance Company regarding change in ownership
and incorporation of Rajasthan Marudhara Gramin Bank in hypothecation
clause.

7. In the event of any claim against you from the earlier owner of the vehicle, we
undertake to indemnify and hold you harmless against any claim, loss arising
from the ownership of any pre-owned certified __________________* vehicle
of any intending seller(s) in respect of which Rajasthan Marudhara Gramin Bank
may have issued the disbursement cheque equivalent to sanctioned loan
amount in the name of _______________________( Dealer name) and such
expenses, cost as may be incurred by you in contesting such claims. However,
the said indemnity will cease forth with on the day on which ownership of any
such pre-owned __________________* vehicle is transferred in favor of the
buyer and security is created in favor of you by recording charge of
hypothecation in the registration certificate in your favor and copy of such RC
Book with hypothecation charge in favor of Rajasthan Marudhara Gramin Bank
and copy of valid insurance policy with Bank’s hypothecation charge in favor of
Rajasthan Marudhara Gramin Bank is submitted to you.

8. That in light of aforesaid facts, it is requested that you may issue cheques for
loan amount sanctioned by you in respect of any pre owned certified
_________________* vehicle(s) sold by us under mark “logo of _____________
_________* in the name of ________________________________(Dealer
name) A/c_________________________.

39
Such payment made by you to _______________________________ (Dealer name)
will discharge you from all liabilities arising out of the transaction.

Thanking you

Yours sincerely,

(Dealer Name)

(Authorized Signatory)

(Name of Dealer)

*Name of Certified outlet e.g. Maruti True Value, Hyundai H Promise and Honda
Auto Terrace etc.

**Name of car brand e.g. Maruti, Hyundai, Honda etc.

40
 Annexure - 7
To,
The Branch Manager
Rajasthan Marudhara Gramin Bank
Branch ______________________
Date: _______________
Dear Sir/Madam,
SANCTION OF CAR LOAN TO _______________________ (Name of the Borrower)
RMGB LOYALTY CAR LOAN
1. At my/our request for sanction of a loan for purchase of car under the above
mentioned scheme, the Bank has sanctioned me/us a loan for
Rs._______________ (Rupees________________ Only) on the terms and
conditions contained in sanction letter dated __________ duly accepted by
me/us.

2. In consideration of the car loan sanctioned, I/we authorize you to exercise lien
on the title deeds of the property already deposited by me/us with the Bank
on ___________ (date of Mortgage/Extension) as security for Housing Loan
(Account Number ________________________) availed by me/us from the
Bank and to retain the title deeds until the car loan is completely
discharged/repaid with interest and other applicable charges.

3. The details of the title deeds deposited with the Bank and detailed description
of the property is mentioned in the schedule hereunder.

Yours faithfully,

(Borrower/s) / (Guarantor)

Schedule I
(Details of Title Deeds)

Schedule II
(Detailed description of the property)

41
 Annexure - 8
Assessment of Income
Type of Parameters to Documents to be Verification
Customer calculate collected from
income customer
Salaried Net income 1. Salary slip (to be 1. Income as per salary slip to
customer tallied with bank be tallied with bank account
account statement) statement.
2. 2-year Form 16/ITR
(Wherever 2. Monthly income (From all
Applicable) sources) and annual income
should tally with ITR.
Self 1. Profit Before Tax 1. 2-year ITR 1. Sustainability of income is
Employed as per latest ITR 2. Bank A/C Statement to be verified by comparing
2. Rent, Interest or the two ITRs
dividend 2. Rent & Interest or dividend
3. No other income to be verified with Bank
including Account for 12 months
depreciation to 3. Normally more than 50% of
be considered Receipts/Sales should be
routed through Bank
Account.
Businessmen 1. Profit before 1. 2-year ITR 1. In case of salaried (e.g.
Tax as per latest 2. Bank A/C statement Directors), it’s to be co-
ITR related with P&L.
2. Rent, Interest or 2. Normally more than 50% of
Dividend Receipts/ Sales should be
routed through Bank
Account.
Agriculturists 1. Income from Documents showing land The income to be arrived by
Agriculture holding and cropping reducing total cost of
2. Income from pattern cultivation/production from
Allied Activities the gross receipts from
agriculture produce (Annexure-
12).

42
 Annexure - 10
Annexure-9

43
44
 Annexure - 10

45
46
 Annexure - 11

47
48
 Annexure - 12

49