Car Wash Equipment Financing: Interest Rates, Eligibility and Applying Online

Nov 17, 2020

Car Wash Equipment Financing: Interest Rates, Eligibility and Applying Online

While the car wash business in India is yet to reach its full potential, it is steadily emerging as one of the most promising business ventures in the country.

The business of car wash initially started as an ‘automobile laundry’ service in 1914 in the city of Detroit in the USA. Over the last century, it has steadily developed into a booming industry and was worth about $5 billion in 2007, in the US alone, as per a report published in Outlook India.

Now, with the number of cars, especially premium ones, plying on Indian roads increasing rapidly, it can be safely concluded that the future of the car wash industry is quite promising in the country.

So, if you are looking for a prospective business venture to invest in, an automated car wash service can be a lucrative option. Especially with car wash business equipment loans readily available, you can fund your venture effortlessly.

However, before delving further into the financing options you can avail for setting up this business, take a look at some of the equipment that you will need to invest in to set up a fully-operational car wash centre.

What are the Car Wash Machinery You Will Require to Set up the Business?

When it comes to setting up a car wash business, the requirements for it are minimal. You will simply need to invest in a few car wash business equipment and tools, find a suitable location to set up the workshop and hire the required staff for business operations.

The first step to start off with a car wash centre will be to purchase the equipment necessary for it. For instance, if you are planning to start a proper car-detailing outlet, the equipment you will need to invest in include –

  • A car vacuum cleaner
  • Pressure washer
  • Air compressor
  • Compound rubbing
  • Foam spray guns
  • Buffers to polish the cars
  • Steamer
  • Polishing pads
  • Hoses
  • Necessary items like glass cleaners, car wax, shampoo, items for car tyre care, polish, etc.
  • Microfiber cloths and brushes

These car wash business equipment types retail at varying prices. For instance, a steam car washer can set you back by Rs. 3.5 Lakh, while a plastic car wash set can cost you somewhere about Rs. 70,000.

To bear the substantial expense of investing in such necessary equipment, you can apply for car wash machinery loan from any of the financial institutions in India.

Types of Loans You Can Avail for Purchasing Car Wash Equipment –

To raise the capital necessary for investment in a car wash business, you will essentially need to apply for a business machinery loan.

But, what is it?

As the name suggests, these loans are designed specifically to aid proprietors avail the funds necessary to purchase new equipment for their business or upgrade the existing ones. A machinery loan can give businesses a boost in their overall productivity by helping them upgrade to the latest and more efficient equipment available.

Nonetheless, to avail this loan to purchase car wash equipment, there are a few criteria that you will need to fulfil. For instance, many lenders offer this loan to businesses which have a vintage of 3 years or more. Additionally, you have to undergo a lengthy documentation process to apply for it. There are several other loan for car wash business equipment eligibility criteria that you will have to fulfil to avail this loan.

So, what can be an alternate option to avail car wash business equipment financing?

Take a look!

Gold Loans – Why Do They Make for the Perfect Financing Solutions?

Gold, for long, has been a popular medium for lending and borrowing in India. However, in recent years, this segment has become much more structured, thanks to emerging lending institutions across the country.

Gold loans hold several benefits over other types of financing options which can be utilised when purchasing car wash business equipment. Few of them are as follows –

  • No end-use restrictions

If you avail a gold loan, you can utilise the funds to not only purchase your car wash equipment but also finance any other aspect of your business.

  • Simple eligibility criteria

In case of gold loans, the loan amount is disbursed based solely on the value of the gold you pledge. Thus, you will not have to worry about fulfilling any stringent eligibility criteria.

  • Low-interest rates

Since these are secured loans, their interest rates are significantly lower than other loan options that you can avail for your car wash machinery.

To top these off, if you avail a gold loan from Rupeek Fintech Pvt. Ltd. you can make the most of the proposition through the industry-first features that the lender offers on this loan product.

Why Should You Avail a Gold Loan for Your Car Wash Business?

A gold loan to purchase car wash business equipment from lenders like Rupeek can proffer several benefits that make it one of the most convenient options to avail financing.

Few of these benefits include –

  1. A high loan to value

Loan to Value or LTV is the percentage limit of an asset’s total worth that you can avail as a loan against it. For instance, if you pledge gold worth Rs. 10 Lakh against an LTV of 75%, then you can avail Rs. 7.5 Lakh as a loan. For a gold loan from Rupeek, you can avail the highest LTV in the market.

  1. Avail the loan from the comfort of your house

Apart from offering car wash business equipment online application facility, the lender also provides a first-in-market doorstep facility for gold loans. To avail this, you will have to make an application through the lender’s app or website. Soon after, a loan manager will be appointed to your house for completing KYC registration and valuation of your gold. Next, your loan will be approved and disbursed to your account. The entire process would take only 30 minutes to complete.

  1. Security of the pledged asset

The loan manager waits at your house until the time you receive the loan amount in your bank account. He/she then leaves with your gold stored in a GPS-traceable bag. The gold thereafter is deposited for storage in the nearest partner bank’s safety vault within 3 km, until the time you can re-possess it.

  1. Easy repayment

The car wash business equipment repayment procedure is also extremely simple. During the loan tenure ranging between 3 months and 6 months (extendable by another 6 months), you will only need to make interest payment each month. The rest is repaid through bullet payment at the end of the loan tenure. You can also defer the entire liability until the end and make repayment at a time.

Apart from these, factors like minimal documentation requirements, pre-approval of the loan, etc. make gold loans the most hassle-free option for car wash equipment financing. Make sure to create a suitable estimate of the loan amount you would need to fund the business and apply accordingly.

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