Looking for MSME Loan to purchase electric vehicles for business use from Indian Bank?

You have landed at the right place. This page contains all the information you will need on Indian Bank’s e-Vaahan Loan.

Indian Bank MSME e-Vaahan Loan

This loan helps MSME units in the transportation sector buy new electric vehicles for business use. The bank sanctions up to 85% of the on-road cost of the vehicle. The loan can also be availed for the purchase of multiple vehicles in one go subject to terms since the total loan amount sanctioned by the bank depends on the repayment capacity of the borrower.

Features of Indian Bank e-Vaahan Loan

Why this Loan?

  • The Indian Bank e-Vaahan Loan is meant for businesses in the MSME segment to help them purchase two, three or four-wheeler electric vehicles for business use
  • This loan cannot be availed to purchase pre-owned vehicles

Loan Amount

  • The maximum loan amount sanctioned under this loan is 85% of the on-road value of the vehicle(s)

Interest

  • The interest rate for this loan is defined as the sum of one-year MCLR of the bank and Credit Risk Spread. As of now, the MCLR of Indian Bank is 7.30% and the Credit Risk Spread, as the name suggests, depends on the credit risk rating of the borrower. It can range from 2.00% to 6.45%, making the effective interest rate range anywhere from 9.30% to 13.75%

Repayment

  • The repayment period is 3 years for two and three-wheeler electric vehicles and 5 years for four wheeler electric vehicles
  • The moratorium period for this loan is not mentioned on the bank’s website. Please contact a bank representative to know more

Security Needed

  • Primary Security for MSMEs: The bank asks for hypothecation of vehicles purchased out of the loan as primary security for this loan for all MSME units
  • Collateral Security for Loans to SME businesses: The bank may ask for CGTMSE coverage for loans up to Rs. 1 crore. For loans above Rs. 1 crore, the bank may ask for 100% collateral security in the form of immovable property/liquid security
  • Collateral Security for Loans to Medium Enterprises: No collaterals for loans up to Rs. 25 lakh.The bank asks for 100% collateral security in the form of immovable property/liquid security for loans above Rs. 25 lakh

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges 15% of the on-road cost of the vehicle as margin for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.

Processing Charges

  • The bank charges 0.59% of the loan amount or Rs. 5900 as processing charges for this loan, whichever is lower

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • A4 size copies of the aforementioned documents

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • All A4 size copies of the aforementioned documents

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
  • All A4 size copies of the aforementioned documents

Reference Facts

  • Indian Bank Website: www.indianbank.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422