What you get
- Financial assistance is provided up to 70% of the cost of the vehicle. | - The calculation for the financial assistance excludes the cost of road tax and insurance. | - The assistance is intended to meet the expenditure towards the cost of the chassis and body building for new transport vehicles (Goods and Passenger vehicle). | - The maximum repayment period is 58 monthly instalments. | - The repayment period includes a moratorium period of a maximum of 3 months. | - A concessional rate of interest of 0.5% less than the normal rate is charged for units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons. | Financial Norms: https://pipdic.in/financial_norms | Conditions | - _The proposed vehicle must be hypothecated._ | - _Collateral security in the form of immovable property must be offered as per the lending policy of the Corporation._ | - _If the immovable property used for collateral security is situated in the Union Territory of Puducherry, its value must be not less than the amount of the term loan sanctioned._ | - _If the immovable property is situated outside the Union Territory of Puducherry, the value of the property offered shall be not less than 150% of the loan amount if it includes land with a building._ | - _If the property offered outside the Union Territory of Puducherry is only land, its value shall not be less than 200% of the loan amount._ | - _For units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons, the required value of the immovable property offered as collateral security is reduced and fixed at 50% of the loan amount._ | - _The valuation of the properties to be offered as security must be assessed by engaging Chartered Engineers or valuers from the approved panel of the Corporation._
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is the total maximum permissible repayment tenure, expressed in monthly instalments, that I am permitted to utilize to settle the entire loan obligation?
The maximum repayment period sanctioned for the loan amount, inclusive of any moratorium period, is limited to 58 monthly instalments.
If I offer collateral security in the form of immovable property located within the Union Territory of Puducherry, what is the minimum required value relative to the sanctioned loan?
In this specific case, the value of the immovable property situated in the Union Territory of Puducherry must be not less than the exact amount of the term loan sanctioned.
What specific components of the new transport vehicle's cost, besides the final unit price, are covered by the financial assistance provided under this scheme?
The financial assistance is intended specifically to cover the expenditure incurred towards the acquisition of the chassis and the subsequent body building work for the vehicle.
Is it necessary for the proposed new transport vehicle being purchased with the assistance funds to be officially pledged as security for the loan?
Yes, one of the primary terms of assistance specifies that the proposed vehicle acquired using the loan amount must be compulsorily hypothecated to the Pondicherry Industrial Promotion Development and Investment Corporation Limited.
Do applicants belonging to special categories like women, Scheduled Caste, Scheduled Tribe, or differently abled persons have different requirements for the value of immovable property offered as collateral?
Yes, for units promoted by Women, Scheduled Caste (SC), Scheduled Tribe (ST), or Differently abled persons, the required value of the immovable property offered as collateral security is reduced and fixed at 50% of the loan amount.
For what intended operational uses can I seek financial assistance, specifically regarding the procurement of a new transport asset?
You can seek financial assistance to acquire new transport assets, covering both Goods vehicles and Passenger vehicles, intended for road transport operations.
What is the longest duration of time allowed for the moratorium period before I am required to begin making the principal repayments towards the loan?
The scheme provides for a repayment schedule that includes a moratorium period. This period, during which only interest payments might be due, can last for a maximum of 3 months.
If I decide to offer immovable property located outside of the Union Territory of Puducherry as collateral security, and it consists only of land without a building, what minimum valuation is required?
If the collateral offered outside the Union Territory of Puducherry is only land, its value must be equal to or greater than 200% of the amount of the term loan sanctioned.
Am I required to demonstrate proof of residency within the specific geographic boundaries of the Union Territory of Puducherry to be considered an eligible borrower?
Yes, a fundamental requirement for eligibility is that the applicant must be a bona fide resident of the Union Territory of Puducherry.
What is the maximum percentage of the total vehicle cost that the financial institution is willing to finance through the sanctioned term loan?
The maximum financial assistance provided covers 70% of the total cost of the vehicle. This calculation explicitly excludes the expenses related to road tax and insurance.
If the immovable property I wish to offer as security is situated outside the jurisdiction of Puducherry and comprises both land and a building, what valuation multiple is mandatory?
If the immovable property is situated outside the Union Territory of Puducherry and includes land with a building, its value shall be not less than 150% of the term loan amount.
Who is authorized and responsible for conducting the assessment and determining the certified market valuation of the immovable properties offered as collateral security?
The valuation of the properties must be assessed by engaging Chartered Engineers or valuers who are officially appointed and listed on the approved panel of the Pondicherry Industrial Promotion Development and Investment Corporation Limited.
Are there any special interest rate reductions available for eligible borrowers who belong to socially disadvantaged groups?
Yes, a concessional rate of interest, which is 0.5% less than the normal rate, is charged for units promoted by Women, Scheduled Caste, Scheduled Tribe, or Differently abled persons.
Is it possible for a successful applicant to purchase a previously owned or second-hand vehicle using the financial aid provided under this program?
No, this specific scheme strictly prohibits using the financial assistance for the purchase of second-hand vehicles. The loan is exclusively designed to support the acquisition of new transport assets.