These loans can be extended for purchase of some specific assets or other consumption loans where repayments are worked out depending upon the cash flow generated by the commercial use of the asset and/or by other identified cash flow of the individual.

The eligible vehicles for hire purchase and auto loans are bus, truck, car, light vehicles and motorcycles. Type of vehicles to be included in for the hire purchase will be as determined by the CEO. Financing should be extended to 90 percent of the cost if secured by the additional registered mortgage and upto 70 percent of cost if secured by the vehicles only.

The tenure should not exceed five years including moratorium. 

For financing of movable items such as office equipment, computers etc. the title of which cannot be registered in the Co-operative’s name, additional acceptable collateral preferably real estate or other acceptable securities is to be compulsory obtained. Written exceptions can be made by the approval of CEO.

The vehicle kept as collateral on loan should be insured in favor of the Co-operative.