Car Loan Scheme (PIPDIC)

What is the PIPDIC Car Loan Scheme?

Car Loan Scheme is a personal vehicle loan offered by the Pondicherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC), a Government of Puducherry undertaking under the Department of Industries and Commerce. PIPDIC's published list of schemes of assistance describes the Car Loan Scheme as being for employees of the Government of Puducherry and employees of Government of Puducherry undertakings, for the purchase of a new car for personal use.

The scheme sits slightly apart from the rest of PIPDIC's portfolio. Most PIPDIC lending is industrial or commercial; factories, transport vehicles, hospitals, hotels. The Car Loan Scheme is a staff welfare style facility, extended by the territory's development corporation to the government's own workforce.

PIPDIC also runs a related four-wheeler scheme under which qualified professionals: in medicine, management, accountancy, engineering and architecture, and good borrowers among PIPDIC's industrial units can finance a new four-wheeler, air-conditioned or otherwise, up to 75 per cent of the vehicle cost. A reader who is not a government employee should look at that scheme instead.

How much does PIPDIC lend under the Car Loan Scheme?

PIPDIC finances 70 per cent of the cost of the vehicle. The borrower brings the remaining 30 per cent from own resources.

Interest follows PIPDIC's published interest rate structure. A car loan will almost always fall in the first bracket:

A concessional rate 0.5 per cent below the normal rate applies where the borrower is a woman, or belongs to a Scheduled Caste or Scheduled Tribe, or is a differently abled person.

An investigation fee of 0.50 per cent of the loan applied, plus applicable tax, is charged for loans up to Rs 25 lakh. SC and ST applicants get a 50 per cent concession on that fee.

Who is eligible for the Car Loan Scheme?

You can apply if:

• You are an employee of the Government of Puducherry, or an employee of a Government of Puducherry undertaking.
• You are buying a new car for personal use.
• You can fund the 30 per cent margin yourself.
• You can offer immovable property situated in the Union Territory of Puducherry valued at 100 per cent of the loan amount as security.
• Your salary supports the instalment after existing deductions.

You cannot apply if:

• You work in the private sector, for a central government office, or for a government undertaking outside Puducherry. The scheme names Puducherry government and Puducherry government undertaking employees specifically.
• You are buying a used car. The scheme funds a new vehicle.
• The property offered as security is outside Puducherry. Unlike PIPDIC's industrial schemes, which allow out-of-territory property at 150 or 200 per cent valuation, the Car Loan Scheme note specifies immovable property situated in Puducherry.
• You have no immovable property to offer and no one willing to offer it on your behalf.
• You are an existing defaulter with PIPDIC or with a bank.

What security is required?

PIPDIC's scheme note for the Car Loan Scheme records the security as Puducherry immovable property valued at 100 per cent of the loan amount. Valuation is carried out by a Chartered Engineer from PIPDIC's approved panel, and the documentation checklist for the property is the same one PIPDIC applies across its lending:

• Original title deeds in the applicant's name
• Antecedent title deeds for 20 to 30 years
• Encumbrance certificate for 30 years prior to the date of the sanction order
• Valuation certificate, patta, field measurement book (FMB) copy
• Up-to-date property tax receipt and chitta nagal
• Legal heir declaratory decree from a competent court in Puducherry where the property stands in a deceased person's name

What documents are required?

How to apply for the PIPDIC Car Loan Scheme

1. Get the dealer quotation for the new car, showing the ex-showroom price, taxes, registration and the on-road cost, so the 70 per cent financeable amount and your 30 per cent margin are clear.
2. Collect the employment and salary papers, a service certificate or employer letter establishing that you are an employee of the Government of Puducherry or of one of its undertakings, and recent salary slips.
3. Register as a New Customer on pipdic.in and log in.
4. Open the loan application form under Loan Applications. The Application Upto 25 Lakhs form covers a car loan in most cases.
5. Fill in the details and upload documents, including the particulars of the Puducherry property being offered as security.
6. Pay the application fee of Rs 100 online at the end of the submission process.
7. Complete documentation after sanction, original and antecedent title deeds, encumbrance certificate, valuation certificate, patta, FMB copy and the legal opinion report. PIPDIC releases the loan to the dealer or to the borrower after documentation is complete.

How do I check my application status?

1. Log in to your pipdic.in customer account and check the application status view.
2. Quote your application number when you contact PIPDIC.
3. Contact The Managing Director, PIPDIC Ltd., No. 60, Romain Rolland Street, Puducherry 605001 — 0413-2334361, info@pipdic.com.
4. Use the Grievance form on pipdic.in if the application is stuck.

Common reasons car loan applications are rejected

• Employment not covered. An applicant who is not an employee of the Government of Puducherry or of a Puducherry government undertaking falls outside the scheme.
• Security property outside Puducherry, or valued below the loan amount.
• Title problems, encumbrances in the 30-year certificate, missing antecedent deeds, or property standing in a deceased relative's name without a legal heir declaratory decree.
• Repayment capacity short after existing salary deductions and other loans.
• Used vehicle proposed instead of a new car.

Key dates

PIPDIC does not publish a window for the Car Loan Scheme. Applications are accepted through the year on pipdic.in and processed on merit. The interest rate and fee figures here are PIPDIC's published financial norms; the rate applied is the one in force on the date of sanction.

A note on what PIPDIC publishes

PIPDIC publishes the eligibility, the 70 per cent funding limit and the 100 per cent Puducherry-property security requirement for the Car Loan Scheme in its schemes of assistance list, and publishes the interest, investigation fee and collateral norms separately under financial norms. PIPDIC does not publish a maximum loan amount, a repayment tenure or a maximum vehicle price for this scheme. Confirm those three points with the Corporation before you place an order with a dealer.

Help and contact

• The Managing Director, PIPDIC Ltd., No. 60, Romain Rolland Street, Puducherry 605001 to 0413-2334361, info@pipdic.com
• General Manager (Administration), PIPDIC Ltd.: mobile 9894653835
• Online applications, pipdic.in
• Scheme list, pipdic.in/pipdic_schemes
• Financial norms; pipdic.in/financial_norms