Gold Loan for Commercial Vehicles

Nov 12, 2020

Gold Loan for Commercial Vehicles

In India, the transportation industry has always been touted as an essential structural support to the economy. With logistics playing an integral role in any business – big or small, the transportation market is expected to expand by leaps and bounds in the coming future. In fact, as per a report published in the Entrepreneur, India’s logistics industry is expected to reach USD215 billion by 2020, and strengthen its position as a significant constituent of the country’s GDP.

With a promising outlook of this industry for the future, investing in a transportation business at present can make for a lucrative opportunity for entrepreneurs. Naturally, the prerequisite to venture into the transportation/logistics business would be to invest in the purchase of commercial vehicles with the aid of a readily available loan for commercial vehicles.

Types of Transport Business and the Commercial Vehicles Required

In recent years, given the boosted accessibility of loans for commercial vehicles, several avenues for transportation businesses have opened up. Following are a few viable options that you can get on board with and the commercial vehicles you would need for its logistics.

  1. Packers and movers

Packing and moving business is as cost-intensive as it could get, but the profit margin for owners is quite high too. With several Indians availing home essentials relocation, this business can be an extremely profitable proposition once it takes off.

Now, apart from the packaging expenses, marketing and other aspects, this business requires substantial investment into commercial vehicles to provide transportation services. In this regard, one can apply for commercial truck loans to gather funding for the purchase of moving trucks.

  1. Pool car

One of the fastest-growing businesses in India, pool cars are in high demand among office and school-goers alike. To initiate a pool car business, the primary requirement would be to invest in a couple or a fleet of minivans based on the scale of operation planned.

You can also easily look forward to a loan for commercial vehicles to ensure that you have the necessary capital arranged for the purchase of suitable vehicles.

  1. Freight/logistics services

As mentioned earlier, logistics play a significant role in the success of any business. As a result, investing in a logistics or freight business can also be equally rewarding. Nonetheless, venturing into a logistics business, big or small, would require you to ensure that you have the proper resources to back you up.

In this regard, you will need to invest in the best freight trucks available in the market to provide your venture with the leverage in this competitive industry. However, with commercial vehicle finance readily available, you can make sure that your venture does not suffer due to the lack of capital.

  1. Transportation of livestock

Livestock forms an integral part of the supply chain for various industries. Subsequently, their transportation is one avenue which can make for a lucrative business option for entrepreneurs looking to invest in the transportation business.

However, conveyance of livestock may require more care over others. That is why potential business owners must be careful to invest in customised commercial vehicles to ensure that their business operations do not hit any hitches.

These are but a few business ideas that you can look into, and for which you can avail funding easily in the form of loan for commercial vehicles from various avenues.

Now, while there are various financial institutions across India offering suitable loans for this purpose, availing a gold loan for the purchase of commercial vehicles can undoubtedly be the most beneficial proposition.

Here is a look at why!

Gold Loans – A Convenient Solution for Commercial Vehicle Financing

In India, gold has remained one of the most popular mediums of funding in the financing sector for long. With borrowing against gold becoming more organised in recent times, individuals are tapping into this source of financing to avail capital for their businesses.

Following are a few advantages offered by gold loans when it comes to investing in the purchase of commercial vehicles.

  • No end-use restriction

These loans can be utilised to fund any purchase. Thus, there are no restrictions when it comes to purchasing the commercial vehicle as per your wish. The capital availed against gold can serve as a type of business auto loan that does not restrict your choice of vehicle.

The unrestricted end-use also expands the scope of gold loan’s utilisation to a range of business investments, like beauty parlours, boutiques, salons, etc.

  • Minimal eligibility requirements

Gold loans are sanctioned based solely on the value of the gold that the borrower can pledge as collateral. Consequently, you will not need to follow any stringent eligibility requirement to avail a gold loan for commercial vehicles. A reduced eligibility requirement also means that you can avail a gold loan even if you hold a low credit score.

Alongside these, if you avail a gold loan from Rupeek Fintech Pvt. Ltd., you can enjoy other attractive perks as well that can make this ideal funding proposition even more lucrative.

Reasons to Avail a Gold Loan for Commercial Vehicles from Rupeek

The gold loan availed from this NBFC can be the perfect choice for a commercial auto loan owing to several reasons. Few of these are as follows –

  • Doorstep loan facility

A first in the industry, this lender brings doorstep loan facility for borrowers, allowing them to avail the loan right from the comfort of their homes. To avail this facility, all you need to do is make an application through Rupeek’s website or app or by placing a phone call. Thereafter, a loan manager will be appointed to visit your house on a scheduled date to complete KYC registration and gold valuation. After these formalities are complete, the loan will be approved, and the amount disbursed shortly. The entire process, from gold valuation to disbursal, takes only 30 minutes to complete.

With this NBFC, you will not need to undergo an elaborate documentation process as well to avail the loan as documents like ITR are not a requirement.

  • High loan to value

LTV or loan to value denotes the maximum percentage of an asset’s total value that a lender is ready to provide as a loan. For example, if you pledge gold worth Rs. 10 Lakh against an LTV of 65%, you can avail a maximum of Rs. 6.5 Lakh as the loan amount. Through this lender’s app, you will be able to avail high LTV.

  • Nominal rates of interest

These loans also come with one of the lowest interest rates, making the funding option affordable too. Although small-value loans are also available on various cash loan apps like Easy Salary, a gold loan from Rupeek Fintech Pvt. Ltd. offers borrowers an edge with low-interest funding.

  • High security for the transportation and storage of pledged gold

After the formalities of availing the loan are complete, the loan manager waits at your house until the time you receive the amount in your bank account. He/she then leaves with your gold in a GPS-traceable bag and deposits it in the nearest partner bank’s vault. The gold remains safely stored in this vault until the time you can repossess it.

During the possession, you can also be assured of additional security with insurance coverage at no extra cost.

  • Ease of repayment

Repayment of this gold loan for commercial vehicles is streamlined for the convenience of the borrower. The tenure for this loan extends typically between 3 months and 6 months (extendable by another 6 months) during which you will only need to make monthly interest payments. The rest of the amount is repaid as bullet payment post loan tenure completion.

Thus, with such benefits and more, a gold loan can effectively help you raise the necessary funds for the purchase of commercial vehicles with ease.

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