Thousands of autorickshaw permit allottees, especially an estimated 10,000 who are being gradually added to the Capital’s existing fleet, have reasons to cheer now.
The State Transport Authority (STA), in a recent meeting, has decided to provide collateral-free loans for buying the autorickshaws in a break from what has been the norm so far.
The loan without the collateral security, in the form of immovable property, will be provided by the Delhi Financial Corporation (DFC) and, in case of default, the autorickshaw and its permit will be forfeited by the DFC.
‘Monetary constraints’
The transport department had invited online applications for issuing 10,000 auto permits in January this year. A total of 11,177 applications were received and found eligible for being given permits, according to a senior government official. As many as 125 of these are being issued to the eligible applicants on a daily basis since mid-October.
The STA Board, in its meeting last month, discussed to provide financial assistance to auto permit holders on easy terms and conditions. It was observed that collateral security was not available with most of the permit holders because of financial constraints, said the government official.
Since private financiers charge high interest rates, it was suggested during the meeting that maximum number of autorickshaws should be financed through the DFC. Previously, the guarantee norms of the DFC to finance autos demanded collateral security of immovable property owned by the borrower with a clear marketable title and valuation not less than 100% of the loan amount.
The board also resolved that in the event of default in loan payment, the DFC will surrender the permit of the autorickshaw to the ARU, which will then allot the permit to another applicant of its permit scheme.
