Credit policy for new commercial vehicles

Who we lend to

• First-time users with a driving licence and a confirmed contract or route, up to two vehicles.
• Small fleet operators (3 to 20 vehicles) with 12 months of bank statements.
• Large fleets (more than 20 vehicles) through the corporate desk only.

Loan-to-value and tenure

Tippers carry a lower LTV because their earnings depend on one activity, usually mining or construction, which can stop overnight (see KB-014).

Income assessment

• Use the trip sheet or contract to estimate monthly earnings, then check it against the bank statement. Freight income should show up as regular credits.
• The instalment must not exceed 55% of estimated net earnings after diesel, driver, tolls and maintenance.
• For tippers, ask which lease, quarry or project the vehicle will work on, and record it. If the answer is "whatever comes", treat the borrower as a first-time user.

Documents

KYC, bank statements, contract or route details, quotation, and for fleets the existing RC copies with hypothecation status. Collect a NACH mandate before disbursement; no cheque-only collection for new loans.

Exceptions

Exceptions to LTV or tenure need the regional credit manager's approval and a written reason in the file. More than two exceptions from one dealer in a quarter triggers a dealer review under KB-007.