MOTOR CONVEYANCE LOAN
TERMS & CONDITIONS

Application Forms

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Revision (W E F 01 Jan 21)

MCL for pre-owned Cars enhanced for Officers @ 8 Lakhs, SNCOs @ 5 Lakhs & Cpls and below (With 02 years of service) 3 Lakhs.
MCL admissibility enhanced to On Road Price subject to existing ceiling.
Option to avail MCL in individual's Bank account authorised.

Officers (including SSC officers)

Types	Eligibilty	Quantum of Loan ( )	Repayment (No. of Instalments)
New Four wheeler	Officers who have completed at least six months of actual service from the date of their first appointment (incl post-commissioning trg assignment) after grant of PC/SSC.	40 Lakh	180
Pre-owned four wheeler	-do-	8 Lakh (Enhanced to Rs 8 Lakh from Rs 6 Lakh wef 01 Oct 20)	120
New Two Wheeler	On commissioning (PC/SSC).	4 Lakh	96

Airmen

Types	Eligibility	Quantum of Loan ( )	Repayment (No. of Instalments)
New four wheeler	SNCOs and above with 2 yrs of service	15 Lakh	180
	Cpl and below with completion of 2 yrs of service	7 Lakh
Pre-owned four wheeler	SNCOs and above with 2 yrs of service	5 Lakh (Enhanced to Rs 5 Lakh from Rs 3 Lakh wef 01 Oct 20 )	120
	Cpl and below with completion of 2 yrs of service	3 Lakh (Enhanced to Rs 3 Lakh from Rs 2 Lakh wef 01 Oct 20)
New Two Wheeler	SNCOs/Cpl & below with two years of service.	2 Lakh	96

NCs(E)

Types	Eligibility	Quantum of Loan ( )	Repayment (No. of Instalments)
New Two Wheeler	After completion of two years of service.	1.5 Lakh	96

Rate of Interest

• 7.25 p.a (Reduced from 7.75%)

Processing Fees

• Nil. (Processing Fee has been waived wef 01 Oct 2017)

Loan Insurance

• A one-time non-refundable contribution towards insurance of loan will be recovered from the loanee from the sanctioned amount.
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Documents For Availing Loan

• Nil

Note : All the legal papers in the application form are to be used as-it-is and not to be retyped or rephrased

Discipline Cases

• Not eligible if two or more (red ink) entries and five years have not lapsed from the last entry and/or disciplinary proceedings (SOE/GCM/DCM etc) are initiated/ in progress.

Submission of Documents after availing Loan

• New Vehicle - Copy of Invoice and RC
  
• Pre-owned Vehicle - Copy of RC and Proof of payment
  Vehicle not older than ten years from the date of its first registration

Pre-payment / Refund of loan

• Re-fixation of EMIs/refund of loan is allowed not more than two times in a financial year.
• Minimum amount for refund of MCL is Rs one lakh for four wheeler and Rs 20,000/- for two wheelers.
• Such refund in full must preferably be made before 20th of a particular month.
• Details of such refund, of made by e-remittance, must be immediately communicated to AFGIS.

Penal Rate of Interest

• Penal rate of interest is chargeable for non-submission of documents and non-compliance of stipulated policy & rules.