Scheme features & terms
Financing to procure mainly three-wheelers/pick-up commercial vehicles for self-employment, and consumer durables and household items such as television sets, fridges, washing machines, furniture and fittings.
Maximum period is 3 years for vehicles and 1 year for household equipment and consumer durables.
Maximum assistance is Rs 2 lakhs for vehicles and Rs 1 lakh for household items, subject to 80% of the total price (for vehicles, including body building and registration).
Primary security is hypothecation; additional collateral or other security may also be collected.
The assistance is the net amount paid to the supplier excluding the member's contribution, plus body building and registration expenses (for vehicles), plus 8% (or such rate fixed from time to time) towards Sanghamam's margin.
Ownership of the vehicle is transferred to the member only after clearing all liabilities under the assistance.
Besides the usual documents, the member executes a hypothecation deed/agreement and sale letter in prescribed forms.
Assistance is provided only for new vehicles from approved dealers, with payment made directly to the supplier — including body building, registration and first insurance premium.