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   - FAQ for Commercial Vehicle Loan
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FAQ of Commercial Vehicle Loan
Q. What is Commercial Vehicle Loan?
“Commercial Vehicle Loan” is a lease facility for the purpose of vehicle purchase for commercial use. During the loan tenure, IDLC will remain as the legal owner of the vehicle (through BRTA Registration). At the successful expiry of the lease term, the vehicle shall be transferred in the name of the business.

Q. What are the product benefits?
• Loan for both new and recondition vehicle
• Up to 100% loan of purchase price (only for medium-sized businesses)
• Maximum repayment tenure of 60 months
• No other collateral required
• Quick, quality door step customer service

Q. Am I eligible to apply?
Yes. If you are running the business (the loan applying concern) for continuous 3 years, you are eligible to apply for Commercial Vehicle Loan.

Q. Can I avail the loan to purchase car in my own name or for my relatives?
No. the facility is only for purchasing of new and reconditioned vehicle for your business purpose. This loan can be availed only in your business’s name.

Q. What type of commercial vehicle I can purchase with the loan? Can I apply loan for multiple vehicle procurement?
Truck, Trailer, Pickup Van, Covered Van, Microbus, Sedan etc which are needed for the commercial purposes of your business. Bus/Mini Bus operators in different routes will not be eligible for this loan.

Yes, you may apply loan for multiple commercial vehicles.

Q. I would like to purchase a used car from my neighbor businessman. Can I avail loan for that purpose?
No, you must purchase new or reconditioned automobiles (5 years from the date of manufacture) from a showroom.

Q. For which businesses can I get the loan?
Any kind of legal business

Q. What are the documents that I need to apply for the Loan?
• Valid Trade License
• TIN Certificate (For loan/Lease of above 5 lac)
• Last one year’s bank statement
• Quotation of the desired vehicles with acceptance signature of the authorized signatory and company seal
• Other standard documents including the financial reports of your business for last 3 years

Q. How much I can get from Commercial Vehicle Loan?
• For single vehicle BDT 0.5 million to BDT 3 million
• For multiple vehicle BDT 1 million to BDT 10 million

(Applicable for SBF clients only, for Mid clients, it depends on business credibility and negotiation)

Q. Can I get full amount as loan of the purchase price of vehicles with other related cost?
Yes, if you are an existing client of IDLC medium business with good repayment track record you can avail 100% of the purchase price of vehicle but for small business client we offer maximum 80% of the purchase price of the vehicle (including CNG conversion and body building)

Q. Can I get financing for completing the registration, CNG Conversion and Body Building of my vehicle?
We do not finance for the registration cost of the vehicle. However, upon approval, one can get financing for the body construction and CNG conversion, as these are the integral part of the vehicle.

Q. Do I need to give any kind of collateral to avail Commercial Vehicle Loan?
No other collateral is needed to avail the facility except the followings

• Registration of the Vehicle/s in the Name of IDLC Finance Ltd.
• One Personal Guarantees of your immediate family member [Spouse/Parents/Brother/ Sister/ Son/Daughter]
• One third party Personal Guarantee
• Post dated cheques for each installment and one undated security cheque equivalent to total installment amount

Q. Can I avail this loan if I am already enjoying financing from other bank(s)?
yes you can avail if you have satisfactory repayment track record and ability for repayment

Q. What is the interest rate of the loan?
Depends on customer’s business strength. However the rate normally ranges between 15 to 17%.

Q. What are the pre-disbursement costs to avail the loan?
• Loan Processing Fee: 1.00% of required loan amount plus VAT
• Documentation charge: BDT 1,250
• 1st party comprehensive Insurance coverage: At actual
• Vehicle Registration Cost: At actual

Q. What are the repayment systems?
Equated Monthly Installment (EMI) or Structured repayment method through Post Dated Cheques in favor of IDLC Finance Limited

Q. What is the tenure for EMI repayment system?
Ranging from 13 months to 60 months based on loan amount and your repayment capacity.

Q. How many days it would take to get the financing?
Maximum 10 working days after receiving all the required documents.

Q. Should I pay VAT, AIT at the point of lease/loan disbursement?
No VAT is to be paid. In case of AIT, It depends on the supplier of the vehicle. If you procure the vehicle from original importer and can produce the copies of Bill of Entry/Commercial Invoice of the vehicle, than no AIT will be deducted from the disbursement amount. If the importer of the vehicle differs from the supplier (quotation provider), then you have to pay AIT from your disbursement amount.

Q. Can I get the loan amount’s cheque in my own name?
In case of purchase order, issued by IDLC to vehicle supplier’s name, the payment is made directly to the supplier. Generally when you procure a vehicle from original importer, we practice this process. In this case, all slandered procurement documents (quotation, bill, delivery chalan, money receipt) shall have to be in the name of IDLC Finance Limited.

In case you choose a vehicle from a supplier who is not the original supplier, then we suggest collecting all sandard procurement documents (quotation, bill, delivery chalan and money receipt) in your business name and submit to us accordingly. In this case, loan disbursement will be made in your company’s name.

Q. What procurement documents I need to submit before availing the loan amount?
Standard procurement documents (Quotation, Bill, Delivery Chalan, Money Receipt), duly accepted by the sign and company seal of the authorized signatory of the company. Among these documents, accepted quotation needs to be produced at the point of loan application and the rest shall have to be produced before loan disbursement.

Q. Can I get the vehicle or loan amount before providing Registration and Insurance of the vehicle?
No. The fund shall be disbursed only after getting the registration in IDLC’s name and completion of insurance formalities.

Q. Can I make a joint registration of my vehicle?
No, you can not. Registration of the vehicle must be in the name of IDLC Finance Limited.

Q. Can I do the insurance from any insurance company that I prefer?
No, IDLC has a preferred list of Insurance Companies and the Insurance should be done from any of these companies.

Q. Do I need to renew the insurance for the following years?
Yes, you have to keep the vehicle under 1st party comprehensive insurance coverage during the total loan period with IDLC. However, you may take coverage in the following years on the outstanding loan balance rather doing it on the total vehicle value.

Q. Who will bear the periodic charges for fitness, tax token, route permit, etc. during the loan period?
Client will bear all these expenses.

Q. Can I transfer the vehicle to someone other than my applying company at the loan expiry?
By informing IDLC through written application, you may transfer the vehicle in other person/company’s name.

Q. Can I avail the financing if my business is located at Potuakhali?
No, the loan shall be provided only to those clients, who have their main business set up around the locality of our branch offices.