Transport Loans
We have been financing the purchase of Commercial and Personal Vehicles since 1992.

Lending Policy:
A) Commercial Vehicles

a) Taxi/Indian Vehicles

• Interest rate : 14% p.a
• Depreciation rate :20% p.a
• Repayment mode : Monthly
• Maximum term: 5 years
• Penalty rate:5 % penalty would be levied for an amount of defaulted installments
• Terms And Condition: Repayment term be fixed to remaing years after depreciation.

b)TATA Trucks & DCMs

• Interest rate :13% p.a
• Depreciation rate : 20% p.a
• Repayment Mode : Monthly
• Maximum Terms : 5 years
• Penalty rate :5 % penalty would be levied for an amount of
  defaulted installments.
• Terms And Conditions: Repayment term be fixed to remaining
  years after depreciation.

B) Non-Commercial (Quota)

a) Toyota Land Cruisers & Prado

• Interest rate : 12% p.a
• Depreciation rate : 10% p.a
• Repayment mode : Monthly
• Maximum term : 7 years
• Repayment mode : Monthly
• Penalty rate :5 % penalty would be levied for an amount of defaulted installments
• Terms And Conditions:
  • Repayment from monthly Salary.
  • If an applicant is not a civil servant/Corporate employee/Military, the
    interest rate will be 14% p.a.

• Interest rate : 12% p.a
• Depreciation rate : 12.50% p.a
• Repayment mode : Monthly
• Maximum term : 7 years
• Penalty rate :5 % penalty would be levied for an amount of defaulted installments
• Terms And Conditions:
• Financing will depend on the applicant's income capacity not exceeding 60% loan amount from its cost price.
• For Companies that acquire quota with 100% tax payable; the interest rate will be 14%.

• Interest rate : 12% p.a
• Depreciation rate : 17% p.a
• Repayment mode : Monthly
• Maximum term : 6 years
• Penalty rate : 5% penalty would be levied for an amount of defaulted installments.
• Terms And Conditions:
  • Financing will depend on the applicant's income capacity not exceeding 60% loan amount from its cost price.
  • For Companies that acquire quota with 100% tax payable; the interest rate will be 14%.

d) Indian Small Cars

• Interest rate : 12% p.a
• Depreciation rate : 20% p.a
• Repayment mode : Monthly
• Maximum term: 5 years
• Penalty rate: 5% penalty would be levied for an amount of defaulted installments.
• Terms And Conditions:
  • All civil servants and corporate employees will be eligible at 12% interest rate.
  • For employees of Corporation that are not registered under the RESB, the interest rate will be 14%.

Eligibility criteria:

• Should be a Bhutanese citizen.
• Must obtain Clearance from other Financial Institutions. (BOB/RICB/BDFC).
• Must have RSTA approval if the vehicle is to be purchased from authorized Indian dealer.
• Generally,client must have 50% of cost of vehicle as equity contribution.
• Client in grade VII and above must have 35% of cost of vehicle as equity contribution to purchase Indian (light) vehicle.
• The Quota holder must sign a “Letter of Guarantee & Hypothecation Deeds if the applicant is NOT the quota holder.
• Departmental Undertaking must be submitted if repayment is to be made from salary.
• Cash flow/Profit & Loss statement & copy of Trade License must be submitted if repayment is to be made from Business Income.
• Comprehensive Insurance is a MUST after the purchase of vehicle.

CREDIT PROCESS:

Step 1: Application form is available free of cost. You will be required to fill in your basic information & loan proposal in this form. The form should be supported with all documents prescribed under Eligibility Criteria and other documents such as a copy of Identity card & two nos. of passport size photo.

Step 2: With Step 1 documents, you will be required to approach the credit Officer to review your documents/discuss & Appraise your proposal. Any issues relating the policy, you will be directed to the Managing Director/Dy. Managing Director.

Step 3: On acceptance of your proposal, /loan clearance from other Financial Institution Viz. BOB, BDFC and RICB will be sought. The maximum period for obtaining loan clearance is one week after which we commence our loan appraisal to the loan committee. Following the above BNB’s actual appraisal and approval time would take half a day at the maximum. The loan committee consists of Appraisal officer, legal officer, Recovery Head, Credit Manager and Dy. Managing Director and the Managing Director presiding the chair.