• Advances granted by banks to professional and selfemployed persons for acquiring
personal computers for their professional use, may be classified in this category, provided
the ceiling of total borrowings of Rs. 10 lakhs of which working capital should not be
more than Rs. 2 lakh per borrower, is complied with in each case for the entire credit
inclusive of credit provided for purchase of personal computer. However, home computers
should not be treated on par with personal computers and excluded from priority sector
• The amount advanced will depend on the amount required, the nature of the expense and
the earnings of the professional.
• To qualify within this category it should not exceed Rs. 10 lakhs of which working
capital finance should not exceed Rs. 2 lakhs.
Period of the loan
• The period is usually between 36 months and 60 months.
Rate of Interest
• The rate will vary from bank to bank.
• These loans are secured by the asset purchased with these loans.
Vehicle loans are advanced to enable individuals:
• Purchase new twowheeler / motorcar of any make for private use or professional or
• Purchase second hand / used twowheeler / motorcar of not more than 5 years old.
• Most banks expect the applicant to be at least 21 years of age and not more than 60 years
• As a safety criteria to satisfy themselves that the person has the ability to repay other
aspects may be looked at such as for how long the person has been employed, other assets
and the like.
• In addition the net take home pay/ disposable income will be checked to determine
whether the applicant can repay the loan.