FAQs- AU Small Finance Bank
AU Bank

Loans

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Q1. What all customer categories are catered in this product segment?

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)

Q2. What is the eligibility criteria in terms of minimum age?

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

Q3.Which documents will be received by the applicant at the time of closure of the loan?

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

Q4. Is there any privilege available for existing customers?

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

Q5. Is a co-applicant and guarantor necessary for me to take this loan?

Presence of 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.

Q6. Are vehicle accessories funded by the Bank?

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

Q7. How do we classify Personal Vehicle customers?

We classify Personal vehicle customers in two categories:
1. Income Base Customer Profiles
2. Non Income Base Customer Profiles

Q8. How do we classify Commercial Vehicle customers?

We classify Commercial vehicle customers in four categories:
1. First Time user (FTU)
2. First Time Buyer (FTB)
3. Transporter
4. Captive User

Q9. What is the documentation requirement for availing the loan?

List of documents required for loan are:
1. KYC Documents (As per KYC Policy of Au Small Finance Bank)
2. Income Proof and other documents for calculating loan eligibility
3. Repayment Instrument

Q10. Is Driving License mandatory to avail a vehicle loan?

Driving license is not a mandatory document for availing loans on vehicles. It is required for those customers who are driver-cum-owners. This is to establish their experience in running a commercial vehicle, construction equipment or tractor.

Q11. Do I need to own a house to avail a vehicle loan from the Bank?

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

Q12. I don’t have any income documents, can I get a loan?

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 their fleet ownership or experience in running a vehicle. Decision to fund a commercial vehicle is made based on the same.
We also specialize in assessing the business income of a customer through 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.

Q13. What kind of vehicle loans are offered by the Bank?

We provide Commercial Vehicle Loan, Auto Loan (Personal Car / Taxi), Two Wheeler Loan, Three Wheeler Loan, Tractor Loan & Construction Equipment Loan (for Backhoe Loaders and Pick & Carry Cranes).

Q14. Can I avail finance on all makes of vehicles?

We select vehicle models based on the technology, after sales support services and secondary market values of the vehicles. Please contact the nearest branch of AU Small Finance Bank or our customer support executive @ 18001200 1200 to know about the vehicle models that are funded by us.

Q15. Do I need to provide a collateral security to avail the loan?

Normally, 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.

Q16. What is the minimum and maximum wheels loan amount sanctioned by the Bank?

The minimum loan amount is Rs 20K and maximum loan amount upto 100% of Ex-Showroom Price net of discounts (insurance and registration amount not considered as part of cost) based on product and customer profile.

Q17. How is loan amount calculated - on Ex-showroom price or On-road Price?

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

Q18. What is Guarantor?

A Guarantor is a person who guarantees to pay for someone else's debt if he or she should default on a loan obligation. Guarantor often has experience of the same trade and helps a customer to ply his vehicle.

Q19. How much time does the Bank require to sanction the loan?

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

Q20. How is interest charged/calculated?

Interest is calculated on a monthly reducing balance basis.

Q21. What is the down payment requirement?

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

Q22. Can I cancel the loan before and after disbursement?

No cancellation fee is charged by the Bank before disbursement of the loan amount. However, Bank will charge on case to case basis in case of cancellation after the disbursement of loan.

Q23. What are the modes available for repayment of installments?

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

Q24. What is the tenure of the loan?

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

Q25. Can I avail of a loan on my existing vehicle?

Yes, we do provide 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.

Q26. What is the Loan to Value (LTV %) offered by the Bank?

The Loan to Value amount is based on vehicle bought and the profile of the customer. Same is calculated on Ex-showroom price of vehicle for new vehicles and Market value (based on Bank’s Grid value, Valuation & Insured Declared Value) in case of Refinance/Used vehicles.

Q27. What is the installment schedule for loan repayment?

Installment schedule is normally equated monthly installments (it could be quarterly or Half yearly in case of Tractor loans) subject to the terms & conditions of the repayment schedule and also subject to cure period/grace period as per Bank's Policy. However, 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.
 

Q28. Can I make prepayment or foreclosure before the maturity date and is there any charge or fee levied against it?

Part pre-payment is not allowed and foreclosure can be done by paying Principal Outstanding, Overdue EMIs, Penalties and charges. In addition Bank will charge some amount which can be 5% of Principal outstanding, if foreclosed within 12 months and 3% of Principal outstanding, if foreclosed after 12 months from the date of disbursement of the loan.

Q29.Can I deposit my instalment amount at any branch?

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

Q1. How will you determine my loan eligibility for mortgage loans?

Customer’s repayment capacity and property valuation as determined by the Bank, helps us decide how much we can lend to the customer. While evaluating repayment capacity, we take into consideration factors like income, financials, age, qualifications, number of dependents, assets, liabilities, savings history & stability, past track record and continuity of occupation.

Q2. In how many years can I repay the loan amount?

The typical tenure of these loans ranges from 5 to 12 years. However, it can vary depending on the purpose of the loan and the customer’s profile.

Q3. Who can be my co- applicant?

If you are an individual, your spouse, your parents or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.

Q1.Who can apply for this loan and for what purpose?

Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs) and NBFC-MFI (NBFC-Microfinance Institutions) can apply for this loan only for onward lending purposes.

Q2.What would be the minimum loan amount?

The evaluation of loan value is done on the basis of due diligence, portfolio size, its growth, capital adequacy ratio, portfolio quality etc.

Q3.What would be the collateral?

Hypothecation of receivables, security deposits and/or mortgage of property.

Q4.What are the tenure options?

Loan tenure depends on the tenure offered for onwards lending and category of NBFC / HFC.

Q5.Who can avail MFI Loans?

The MFI loans are provided to NBFC- MFIs or direct lending institutions who do onward lending to women borrowers under JLG (Joint Lending Groups) or SHG (Self Help Groups).

Q6.What are the minimum and maximum loan amounts?

Loan amount depends on eligibility, income and repayment capacity.

Q7.How do I repay the loan?

You could repay the loan through Equated Principal Instalments for term loans. Besides, for other NBFC loans, repayment is as per the relevant defined norms.

Q1. What is the tenure of Gold Loan provided by AU Small Finance Bank?

Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs) and NBFC-MFI (NBFC-Microfinance Institutions) can apply for this loan only for onward lending purposes.

Q2. What is the loan amount provided?

You can avail Gold Loan for any value from ₹10,000 to ₹15 lakhs instantly and as per your need.

Q3. How long does it take to process Gold Loan?

A Gold Loan is disbursed within 30 minutes. This is, however, subject to the verification of gold and other documents that you submit. Approvals are at sole discretion of the Bank.

Q4. Are there any benefits on for Agricultural/Priority Sector?

Yes, the Bank will give preferred interest rates and priority processing for the Priority Sector.

Q5. Can I get funding against gold coins?

You can get loan on gold coins upto maximum of 50 gms per customer for coins issued by Indian banks only.

Q6. What are the documents that I need to submit?

As you come to take gold loan from us, please bring:
Two passport size photographs
proof
Address proof
Proof of land holding in case of agriculture loan of more than ₹1 Lakh

Q7. What happens if I change my address?

During the tenure of loan, if there is any change in address, it should be updated in our records. You could call us on 1800 1200 1200 or visit your nearest branch of AU Small Finance Bank.

Q8. What interest will I be charged?

AU Gold Loans come to you at attractive & competitive interest rates based on the prevalent market situation. You will be charged simple interest, which is fixed and is calculated on reducing balance basis.

Q9. Can I make partial payment?

Customers are allowed to make partial payments but security will be released only on closure of loan.

Q1. What is Agriculture Term Loan?

Agriculture term loan is a loan facility provided to farmers for investment credit requirements and allied agriculture activities like land development, minor irrigation, purchase of farm equipment, dairy, greenhouse, horticulture infrastructure etc. for a specific period.

Q2. What is the frequency of repayment of Agriculture Term Loan?

Repayment frequency is decided as per customer convenience or aligned to crop harvesting period. It could be planned for monthly, quarterly or half yearly instalments. Each instalment will comprise of principal and interest component.

Q3. What will be mode of repayment of this loan?

The loan can be repaid by cash, cheque, Funds Transfer or NACH.

Q4. What is tenure of Agriculture Term Loan?

Tenure of Agriculture Term Loan will be scheduled for 60 months only.

Q5. What are the security requirements for this loan?

For a loan of more than 1 lakh, collateral security like agriculture land, non-agriculture land, commercial property, financial security (Fixed Deposit/National Saving Certificate)/gold or gold ornaments etc. assets to be financed can be taken.

Q6. Is there any insurance premium amount funding facility available for the asset financed?

Yes, insurance premium amount funding is available for all financed assets.

Q1. What is Kisan Credit Card?

Kisan Credit Card (KCC) is a working capital facility designed especially for farmers. This facility helps in providing adequate and timely support to meet your short term financial needs for cultivation of crops.

Q2. Can I use KCC facility for any other purpose other than cultivation of crops?

Yes, you can use KCC facility towards post-harvest, household consumption, repair & maintenance of farm assets and investment credit requirements like- dairy animals, horticulture infrastructure, farm machinery and implements etc.

Q3. Do I need to go to my branch for withdrawal of loan amount?

Withdrawal from the KCC account can be done from any of the nearest AU Small Finance Bank’s branch or ATM.

Q4. What is the tenure of Kisan Credit Card?

The KCC limit is valid for 5 years subject to annual review. At the time of every annual review, if account is satisfactory and as per norms, your drawing power will increase by 10%. You need not submit any land documents for annual review.

Q5. What is the security required to avail this facility?

Primary security required will be Hypothecation of crops raised. Apart from crop hypothecation, agricultural land, non-agricultural land, residential property, commercial property, Financial Security (Fixed Deposit/National Saving Certificate), gold or gold ornaments etc. may also be accepted as security by the Bank.

Q6. What will happen if my land is already mortgaged with some other bank?

The charge of existing bank need to be removed prior to availing the KCC loan from AU Small Finance Bank.

Q7. What is the frequency of repayment of loan?

Repayment is linked to your crop harvesting cycle i.e. the repayment frequency of interest is half yearly and yearly basis depending on the type of crop cultivated by you. For short term crops like Wheat, Mustard, Paddy, Bajra etc. the interest will be charged on a half yearly basis and for long term crop like grapes, pomegranate, oranges, banana, the interest servicing will be charged yearly basis.

Q8. What are the method of repayment of loan?

It can be repayed by way of cash, cheque, Funds Transfer or NACH (National Automated Clearing House).

Q9. Do I need to deposit only interest as per defined frequency?

No, in addition to the interest payment within due period, aggregate credits in the account should be equal to or more than the peak outstanding of the loan account within 12 months.

Q10. What kind of charges will be levied by the Bank?

Processing fees, legal charges and valuation charges will be levied as and when applicable as per terms and conditions with prior communication.

Q11. What is the benefit of availing this facility from AU Small Finance Bank as there are many banks providing the same facility?

AU Small Finance Bank aims at providing loan as per requirement of customer with doorstep service to its customer. We also ensure that documentation requirement is minimum and procedure is hassle free and quick.

Q12. Where do I need to submit loan request and documents for AU Kisan Loan?

You need to submit all documents in the respective branch or to the Relationship Officer. He/she will facilitate further processing of the loan.

Q13. What is the process in case land is mortgaged with another bank and loan is existing?

In such cases, we can sanction your loan with the condition of closure of existing loan. You need to submit mortgage free land extract document prior to disbursement of your loan from AU Small Finance Bank.

Q14. Can I apply for KCC if I have availed the loan from Mandalis/PACS and land is not mortgaged?

Yes, you may apply. Your credit history with Mandalis/PACS should be standard and land should be mortgaged with AU Small Finance Bank.

Q1.What is the minimum loan amount provided for real estate funding by AU small Finance Bank?

The loan amount is evaluated on the basis of the construction cost.

Q2.What would be the collateral required?

Escrow & hypothecation of project receivables and mortgage of property are the required collaterals for construction finance.

Q3.In how many years do I have to repay the loan amount?

Loan tenure is customized on case to case basis.

Q4. When will the loan be disbursed?

You will receive the disbursement after credit, technical and legal appraisals of the property have been done. Besides, execution of relevant documents & deposit of original property documents is required to be completed prior to disbursement.