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Second-Hand Commercial Vehicle Finance: An Affordable Solution

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Small and Medium businesses often require frequent use of vehicles. However, many times due to financial crunch, businesses fail to invest in the vehicles as the other needs are to be taken care of, such as inventory management, staff payroll, and such. And so, many businesses are unable to operate at their full capacity.

But there’s nothing to worry about, as there are second hand commercial vehicle loan options to equip SMEs with the finance to fund their aspirations and expand their business. But how can you avail second hand commercial vehicle loan, what is eligibility, and what documents are required? How to find out which one is best among the plethora of options? Read ahead to find out before you make a decision!

What is the Second Hand Commercial Vehicle Finance?

Second hand commercial vehicle finance empowers businesses to buy vehicles for commercial purposes. Many financial institutions around the country offer used commercial vehicle loans to small and medium-sized businesses. At times, these used commercial vehicle loans are customized to meet the needs of loan applicants. Once the loan is granted, the applicant will have to pay the dues every month, as well as the interest rates.

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Commercial Vehicle Loan Eligibility

Here is the used commercial vehicle loan eligibility-

  1. Minimum one year of ownership of at least two commercial vehicles
  2. Financial stability in the living town, village, or city
  3. Applicants without any prior experience owning a commercial vehicle will have to name a relative or friend who works in the same business
  4. Credit history of highlighting the worthiness

Now that we are aware of commercial vehicle loan eligibility, let us learn about the key benefits of this loan!

Key Benefits of Second Hand Commercial Vehicle Loan

There are numerous benefits of second hand commercial vehicle loans. For small and medium enterprises, it is similar to a boon to run the business at full capacity! Here are some of the key benefits-

  1. Affordability: Second hand commercial vehicle loan is generally more affordable than financing for new commercial vehicles. This is because used vehicles have already undergone significant depreciation, reducing their overall value and making them more affordable to finance.
  2. Flexibility: Second hand commercial vehicle loan offers greater flexibility than purchasing a vehicle outright. With financing, businesses and individuals can choose from various repayment options and loan terms, allowing them to tailor the financing to their specific needs and budget.
  3. Faster turnaround: Second hand commercial vehicle loan often has a quicker turnaround time than financing for new vehicles. This means that businesses and individuals can get their vehicles on the road more quickly, helping to improve their bottom line and meet their transportation needs.
  4. Lower risk: Second hand commercial vehicle loan can be less risky than financing for new vehicles. Since the vehicle has already been on the road for some time, any issues or defects will be identified and addressed, reducing the risk of unexpected maintenance or repair costs.
  5. Improved cash flow: Financing a second hand commercial vehicle can help improve cash flow for businesses and individuals. Rather than paying for the vehicle upfront, they can spread the cost out over time, making it easier to manage their finances and invest in other areas of their business or personal life.
  6. Access to better quality vehicles: The second hand commercial vehicle loan can give businesses and individuals access to better quality vehicles than they could afford outright. With financing, they can choose from a wider range of vehicles that better suit their needs and budget.

Key Points to Consider When Picking a Used Commercial Vehicle Loan

  1. Interest rates: One of the most important factors to consider when choosing a used commercial vehicle loan is the interest rate. A higher interest rate will mean that you end up paying more over the life of the loan, so it is essential to shop around and find a loan with a competitive interest rate.
  1. Loan term: The loan term is the length of time over which you will be paying off the loan. A longer loan term will mean smaller monthly repayments but a higher overall cost due to interest charges. Consider your budget and financial situation to determine the best loan term for you.
  1. Down payment: Some lenders may require a down payment on a used commercial vehicle loan. This is a lump sum payment made at the time of purchase that reduces the amount you need to finance. Consider whether you have the funds available for a down payment and how much you can afford to put down.
  1. Repayment schedule: The repayment schedule will determine how often you repay your loan. This could be monthly, biweekly, or weekly. Consider which plan works best for your budget and cash flow.
  1. Fees: Review any fees or charges associated with the loan, such as application fees, late payment fees, or prepayment penalties. These can add up over time and increase the overall cost of the loan.
  1. Lender reputation: Research the lender you are considering and check their reputation and customer reviews. Look for a transparent and responsive lender to your questions and concerns.
  1. Vehicle inspection: When financing a used commercial vehicle, it must be inspected by a trusted mechanic to ensure that it is in good condition and worth the investment.

Conclusion

It is mandatory to apply for the second hand commercial vehicle loan from a trustworthy place. HDFC Bank offers a range of financing options for second-hand commercial vehicles, and there are several reasons why someone might want to apply for a loan from HDFC Bank:

  1. Lower interest rates
  2. Flexible loan terms
  3. Easy application process
  4. Wide range of loan amounts
  5. Different vehicle brands are accepted
  6. Customisable EMI plan to suit your needs
  7. Bank branches available in different parts of the county for easy and smooth access

Now that you are well aware of all the facilities offered by HDFC Bank, apply for the loan today and expand your business!

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Finance

Understanding the Benefits of Emergency Loans for Unexpected Expenses

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Emergency Loans

Emergency funds form the foundation of your financial well-being. Having a financial resource to tackle unexpected expenses is a big necessity. However, emergencies often come up at the most unexpected times. In such situations, emergency loans emerge as the most practical funding option.

An emergency loan provides immediate relief. At the same time, it gives you an opportunity to build your credit score without stretching your budget. In the following sections, you will learn what these loans are and their benefits. 

Understanding an Emergency Loan

Emergency loans are financial facilities many new-age lenders like Hero FinCorp provide to address urgent needs. They are a quick source of funds when you require money to cover an unexpected expense or overcome a crisis. Quick disbursal of funds ensures timely access to the funds needed without touching your savings. Moreover, they are short-term, collateral-free loans that do not require backup of collateral, guarantor, or security. Despite the higher risk for the lenders, these loans are known for competitive interest rates and simple eligibility criteria.

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An emergency loan approval process involves an in-depth analysis of an applicant’s creditworthiness, including financial health, repayment capacity, income stability, and credit score. Lenders consider several other factors to determine loan eligibility, such as age, debt-to-income (DTI) ratio, employment history, work experience, etc. Hero FinCorp can be a great choice if you are looking for a reliable option with hassle-free process. They offer Personal Loan with minimum salary requirement of Rs 15,000 per month.

What Can an Emergency Loan Cover?

While putting away money and building a corpus of emergency funds is advisable, you may still need emergency loans in the following life situations:

Medical Emergency: 

The steep costs of healthcare these days could drain your emergency funds and savings within a short period. In such situations, an emergency loan can revive your mental and physical health without any compromise on the quality of healthcare.

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Higher Education: 

Quality education sometimes can be expensive. Seldom your saved money falls short to financing the costs. An emergency loanl can cover various expenses associated, including tuition fees, travel costs, accommodation expenses, study materials and equipment, etc.

Urgent Trips: 

An emergency loan can save the day when you suddenly need to go on a foreign trip for work, relatives, healthcare, or a spontaneous plan with friends. It can finance all types of expenses for the trip, including airfare, sightseeing, accommodation, shopping, visa, etc.

Last-Minute Wedding Expenses: 

Some expenses may arrive unexpectedly despite planning everything efficiently. Such financial shortfalls may ruin the wedding experience, making all your efforts unsuccessful. Cover these expenses with an emergency loan to make your event memorable.

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Home Renovation: 

You may require an emergency loan for home renovation needs such as urgent repairs and quick revamps. Cover all the related costs with this loan and transform your house the way you like.

Other than these, emergency loans may cover several other expenses such as big-ticket purchases, debt consolidation, sudden death in the family, loss of job, urgent car repairs, etc.

Top Advantages of Emergency Loans

Since emergency loans can come to the financial rescue in several life situations, let’s look at the top advantages they provide:

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  • Quick Access to Funds: 

Speed is one of the biggest advantages of emergency loans. If an unexpected expense exceeds your savings, secure instant funding from an emergency loan. NBFCs like Hero FinCorp can approve these loans in minutes and disburse the loan amount directly into your bank account.

  • Flexible Spending: 

An emergency loan is completely flexible in how you use the loan amount. These loans do not impose any restrictions on fund usage, giving you the freedom to cover whatever urgent requirement arises.

  • Easier Eligibility Criteria: 

Eligibility criteria for emergency loans are more flexible than traditional ones. As long as you have a stable job with a regular income, you may qualify for a Personal Loan with a minimum salary of Rs 15,000. 

  • No Collateral Requirement: 

Emergency loans are a type of Personal Loans that do not require collateral. These unsecured loans provide convenient access to funds within minutes with minimal formalities.

  • Convenient Application: 

The application procedure for an emergency loan is quick and simple. Loan companies streamline the process with digital methods to accelerate evaluation, approval, and funding. The convenient online process makes loan application easy from the comfort of your home without visiting the lender’s branch office and submitting hefty paperwork. The streamlined application process delivers fast funding access right when needed.

  • Direct Dispersal of Funds: 

Once approved, you don’t need to visit the lender’s office to collect the cheque and submit it to your account. The electronic transfer disburses the loan amount directly to your bank account, allowing immediate access to the funds for emergencies.

Steps to Apply for an Emergency Loan

When planning to apply for an emergency loan, here is your best path forward:

  • Choose the Lender: 

Research and compare multiple lenders based on their interest rates, approval requirements, eligibility conditions, loan amounts, additional charges, repayment terms, etc.

  • Choose a Repayment Term: 

Since lenders allow applicants to choose a repayment term with budget-friendly EMIs, use an EMI calculator to make an informed decision best suited to your monthly budget and repayment capacity.

  • Start the Application Online: 

You can easily fill out the application form online using your smartphone. Download the instant loan app offered by reliable NBFCs like Hero FinCorp to apply online.

  • Review and Accept the Loan Offer: 

Review and accept the loan offer you receive to authorise fund transfer to your account.The convenient and digital process takes just a few minutes to complete, giving you quick loan access to emergency funds. Having your documents ready in advance streamlines and expedites approval, making emergency loans instantly available without hassle. Apply for an emergency loan of up to Rs 3 Lakh with Hero FinCorp and meet financial emergencies more confidently. Here, the interest rates are competitive and the application process is digital, making emergency funds instantly available in your bank account.

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Business

Mitsubishi to acquire 32% stake in TVS Mobility’s new venture

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Mitsubishi to pick up 32% in TVS Mobility’s new arm

TVS Mobility and Japan-based Mitsubishi Corp have announced an agreement, under which Mitsubishi Corp will acquire almost one-third stake in a new company, a spin-off of the business of TVS Mobility.

According to Mitsubishi Corporation, they have agreed to subscribe to shares (about 32%) in TVS Vehicle Mobility Solutions Pvt Ltd (TVS VMS) through private placement. The completion of these transactions is subject to approval by the relevant regulatory authorities.

This investment is intended to develop comprehensive mobility solutions including after-sales services, multi-brand sales, leasing, and other automotive operations by utilizing the extensive customer base and digital technology of TVS Mobility’s arm.

Mitsubishi has previously invested in TVS Automobile Solutions (TASL), a network of roughly 700 service centers, and partnerships with 16,000 retailers of wholesale auto parts connected through digital technology.

The exact financial details of the deal have not been disclosed, but this strategic partnership between TVS Mobility and Mitsubishi Corporation is expected to enhance the range of mobility services being offered by TVS Mobility and strengthen their position in the market.

Overall, this collaboration is a significant development in the automotive industry, and it will be interesting to see how TVS Mobility and Mitsubishi Corporation leverage their strengths to revolutionize mobility solutions and services in the future. The completion of this deal is eagerly anticipated and is bound to have a far-reaching impact on the industry.

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Business

IndiGo’s Market Share Decline in January Explained: Chart Beat

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Chart beat: Why IndiGo’s market share slipped in January

In January, IndiGo’s domestic passenger traffic increased by 16% year-on-year, but its market share dropped to 60.2% sequentially, marking its lowest share since the shutdown of Go First’s operations in May. According to Jefferies India, the decrease in IndiGo’s market share may be due to the impact of its aircraft grounding in Q4, while its peer, Air India, continues to build its fleet. The market share of the Air India group reached a recent high of 28.3% last month, compared to 27% in December.

Moving forward, investors will closely monitor fuel prices in the coming days as they play a crucial role in the profitability of airlines. Aviation turbine fuel (ATF) prices make up a significant portion of operating costs for airlines, and higher fuel prices can negatively impact profits. Despite a slight decrease in ATF prices month-on-month in February, Jefferies predicts that spot jet fuel suggests that ATF may remain stable next month.

The fluctuation in market share and the impact of aircraft grounding on IndiGo’s operations highlight the challenges and competition within the domestic aviation industry. As the industry continues to navigate through the effects of the pandemic, factors such as fuel prices and fleet expansion will continue to influence the performance and market position of airlines. As a result, stakeholders will closely follow developments in these areas to gauge the overall health and prospects of the aviation sector in the coming months.

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