MOTOR CONVEYANCE LOAN
TERMS & CONDITIONS

Revision (W E F 01 May 25)

MCL for New Cars enhanced for Officers @ 50 Lakhs, Airmen @ 25 Lakhs and NCs(E) @ 25 Lakhs .
MCL for Pre-owned enhanced cars for Officers @ 20 Lakhs, Airmen @ 8 Lakhs and NCs(E) @ 8 Lakhs .
MCL for New Two Wheeler enhanced for Officers @ 5 Lakhs, Airmen @ 5 Lakhs and NCs(E) @ 5 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.	50 Lakh	180
Pre-owned four wheeler	-do-	20 Lakh	120
New Two Wheeler	On commissioning (PC/SSC).	5 Lakh	96

Airmen

Types	Eligibility	Quantum of Loan ( )	Repayment (No. of Instalments)
New four wheeler	SNCOs and above on 2 yrs of service	25 Lakh	180
	Cpl and below on completion of 2 yrs of service	25 Lakh
Pre-owned four wheeler	SNCOs and above on 2 yrs of service	8 Lakh	120
	Cpl and below on completion of 2 yrs of service	8 Lakh
New Two Wheeler	SNCOs/Cpl & below on two years of service.	5 Lakh	96

Note : Air Warriors who have not passed the CPE and not been re-mustered will hence forth be eligible for max ceiling/outstanding of all loans taken together as follows:

Category	AC / LAC
Max Ceiling/Outstanding of all Loans (in Rs ) Subject to ceiling of MCL.	3,50,000

The repayment capacity would be reckoned for a maximum period of 11 years and sanctioned accordingly.

NCs(E)

Types	Eligibility	Quantum of Loan ( )	Repayment (No. of Instalments)
New four wheeler	After completion of two years of service.	25 Lakh	180
Pre-owned four wheeler	After completion of two years of service.	8 Lakh	120
New Two Wheeler	After completion of two years of service.	5 Lakh	96

Rate of Interest

• 7.75% p.a

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.
• Click here for details

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/black 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 Registration Certificate and Invoice.
  
• Pre-owned Vehicle - Copy of Registration Certificate 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.
• Such refund in full must be made before 25th of a particular month. Any amount remitted after 25th of the month will be accounted in following month.
• Members are requested not to make any remittance in AFGIS account in CASH.
• Details of such refund, of made by e-remittance, must be immediately communicated to AFGIS member's AFNET Login ID under 'Refund Intimation' /FAX / Email.
• The outstanding amount displayed on website EXCLUDES the EMI of the selected month.
• No "Cash Deposit" is accepted. No "Third Party Transfer" is allowed. Air warriors are requested to refund the amount from member's bank account.

Penal Rate of Interest

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