{"id":3580,"date":"2020-03-30T18:17:00","date_gmt":"2020-03-30T12:47:00","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=3580"},"modified":"2020-03-30T13:10:19","modified_gmt":"2020-03-30T07:40:19","slug":"refinance-for-small-road-transport-operators-scheme-of-sidbi","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/refinance-for-small-road-transport-operators-scheme-of-sidbi\/","title":{"rendered":"Refinance for Small Road Transport Operators Scheme of SIDBI"},"content":{"rendered":"\n

Refinance for Small Road Transport Operators Scheme of SIDBI provides assistance in transportation operations, new as well as existing operators. Further, to create new employment opportunities in the same. Accordingly, the refinancing will cover the costs of chassis, body, initial taxes, insurance, capital for the new vehicles. <\/p>\n\n\n\n

Objectives of the Refinance for Small Road Transport\nOperators Scheme<\/strong><\/h5>\n\n\n\n
  1. Aiding for the attainment of new and existing\nvehicles <\/li>
  2. Providing the expenses of operation to units\nrelated to the transport business <\/li>
  3. Financially assisting the Small road transport\noperators <\/li>
  4. Encourage to purchase (new or old) vehicles from\nstandard manufacturing companies <\/li><\/ol>\n\n\n\n
    Eligibility <\/strong>for Refinance for Small Road Transport Operators Scheme <\/h5>\n\n\n\n
    1. An individual or an establishment trying to own transport<\/a> vehicles for business <\/li>
    2. Further, the applicant must have a driving license <\/li>
    3. Subsequently, borrowers should have a permit from an authority to use it for business <\/li>
    4. The applicant should be experienced and professional<\/li>
    5. Also, the transport business owing to one or more buses or truck are eligible.<\/li><\/ol>\n\n\n\n

      Note that, any individuals, proprietary concerns,\npartnership firms, units involved in transportation fulfilling the said\ncriteria can apply. <\/p>\n\n\n\n

      Nature of Assistance <\/strong>Under Refinance for Small Road Transport Operators Scheme <\/h5>\n\n\n\n
      1. The primary assistance if offered through refinancing. <\/li>
      2. In case of a new vehicle, 90% of the total cost of the vehicle is covered.<\/li>
      3. However, in the case of old vehicles, 25% is the margin that will be set aside and thus, the scheme covers 75% of the cost through a loan. <\/li>
      4. The rate of assistance will vary with respect to the loan amount and the bank.<\/li><\/ol>\n\n\n\n
        Security <\/strong><\/h5>\n\n\n\n

        The vehicle purchased under the scheme will be held as the\nsecurity from the loan. Further, until the loan is cleared, the vehicle shall\nbe in the name of the borrower and the bank (as hypothecator and hypothecate). <\/p>\n\n\n\n

        Collateral Security for Refinance <\/strong><\/h5>\n\n\n\n
        1. Loans till Rs 10 lakhs<\/strong>: This is covered under CGTMSE<\/a> and thus does not require collateral security.<\/li>
        2. Loans over Rs 10 lakhs<\/strong>: The security is equivalent to the borrowed money in the form of:<\/li><\/ol>\n\n\n\n