Lending to STUs !
The money mobilized is exclusively lent to the State Transport Undertakings to meet their capital expenditure and working capital requirements. Different types of loans are being issued to the State Transport Undertakings.
1. Hire Purchase Loans - for the purchase of chassis and bus body constructions
2. Short Term loans like Motor Vehicle Tax Loans - To meet the half yearly motor vehicle tax commitments of the STU, Bonus Loan - To meet the yearly bonus commitments of the needy STUs and Working Capital Requirements
3. Long Term Loans - To meet capital expenditure programmes other than purchase of chassis and bus body constructions, like construction of a depot