Loans For Taxi Drivers

Taxis have been an essential part of India’s urban transportation landscape. The iconic black and yellow taxis have traversed the streets of major cities, serving as a lifeline to commuters. With more and more people using taxi services, lenders are now offering financing options in terms of personal loans and commercial car loans. Thereby helping taxi drivers sustain and expand their livelihoods.

Acquiring or upgrading a vehicle for commercial use as a taxi requires significant capital and a loan for taxi drivers will provide them with the necessary financial support. The Government along with many lending institutions offer specialised lending services tailored to the needs of taxi operators.

Offering customised loan amounts of up to ₹2 Crore at attractive interest rates and flexible repayment plans.

Interest Rates For Taxi Driver Loan

When seeking to avail a loan for taxi drivers, it is important for you to understand the interest rates offered by various lenders. Keeping in mind that the rates are determined by various factors such as your creditworthiness, loan amount, income and more.

Checking and comparing the interest rates of different lenders will help you choose the right loan with the best loan terms. The table below portrays the interest rates offered by different lenders for loans for taxi drivers in India:

Loans & Schemes For Taxi Drivers

Taxi drivers have various personal and business loan options available that are tailored to their unique needs. The Government has also provided many schemes for taxi drivers to explore in order to meet their financial requirements. Here are the types of loans that taxi drivers can avail:

• Personal loan: A personal loan for taxi drivers can be helpful to cover general financial requirements including emergencies and for personal expenses. With an unsecured loan, a taxi operator can get loan amounts of up to ₹50 Lakhs at affordable interest rates and flexible repayment tenure.
• New Commercial Vehicle Loan: A new commercial car loan for taxi drivers is a type of loan that can be utilised to buy a brand new car for commercial and business use.
• Used Commercial Vehicle Loan: Taxi operators can also take a loan to buy a used commercial vehicle. With this loan borrowers can get up to 90% of the purchase price.
• Commercial vehicle refinance loan: Another loan that taxi drivers can take is a commercial vehicle refinance loan. This loan can be taken against a commercial vehicle that is no longer under an existing loan. Borrowers can get up to 100% of the current vehicle’s market value with a commercial vehicle refinance loan.
• Swavalambi Sarathi Scheme: The Swavalambi Sarathi Scheme. is a scheme offered by the Government of Karnataka to all taxi and auto rickshaw drivers. The scheme subsidises the purchase of taxis, passenger auto rickshaws and goods vehicles for up to 50% or 3 lakhs depending on the applicant’s eligibility.
• Union Parivahan scheme: This loan scheme is offered by Union bank of India. It is specially designed to finance the purchase of brand new vehicles for individuals and businesses engaged in the transportation sector. Borrowers can get a maximum loan amount of up to 500 lakhs with this scheme.

Eligibility Criteria for Taxi Driver Loans

Securing a loan for taxi drivers will require you to meet certain requirements set by the lending institution. These criteria will include a number of factors that will play a crucial role in determining your qualification for financial assistance. Specific requirements will differ from lender to lender, however, here are the general criteria that lenders look for:

• Must be an Indian citizen of 18 - 60 years of age.
• Must have a valid driving licence with at least 1 year’s experience.
• Must have a proper permit issued by the appropriate authority to operate the vehicle for passengers or goods traffic for hire.
• Salaried individuals must have an income of at least ₹13,500.
• Self-employed individuals must have an income of at least ₹15,000.
• Must have a credit score of at least 650 above.

Documents Required For Taxi Driver Loans

Providing the right documents is the key to a successful loan application. Every lender will require specific documents that will help them determine your credibility for the loan. Here are the general documents usually required by most lenders:

• Age proof: Aadhaar, Passport, Voter ID.
• Identity proof: PAN card, Aadhaar.
• Address proof: Utility bills, Rental agreement, Ration card.
• Income proof: 6 months bank statement, Form 16, ITR for the last 2 years.
• Experience proof: Driving licence, Registration copy of owned commercial vehicle (if any), Property ownership, Proprietorship declaration, etc.
• Fleet list: List of vehicles currently in ownership along with supporting documents (If applicable).

Tips For a Successful Loan Application

Being well prepared and informed is rewarding when it comes to availing a loan. Here are some tips that you can follow to enhance your chances of getting a loan approved:

• Check and improve your credit score: Maintain a high credit rating as it enhances your chances of getting a loan. Before applying for a loan, review and address all the issues in your credit report.
• Understand the eligibility criteria: The eligibility criteria asked by the lenders are crucial to meet to successfully avail a loan. Every lender will have their own specific requirements so ensure that you familiarise yourself and meet the necessary criteria.
• Calculate EMI affordability: Check your financial capacity before applying for a loan by using an online EMI calculator to estimate the EMI amount. This will help you customise the tenure and loan amount to get an EMI which you can comfortably afford.
• Prepare necessary documents: Documents help lenders assess your creditworthiness and financial health. Therefore, having all the required documents will ensure a successful loan application.
• Compare lenders: Comparing lenders is the best way to get favourable loan terms and interest rates that will help you save in the long run.
• Show stable income: Having a stable income will ensure a successful loan application. Lenders prefer applicants with good financial stability as it ensures the repayment capabilities.
• Minimise debt: Lower your existing debt to improve your debt-to-income ratio which will increase your loan eligibility.

Steps to Apply for a Personal Loan

Getting a personal loan has become easier and more convenient with Buddy Loan, here are the simple steps that you can follow:

• Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
• Step 2: Open the personal loan application page.Provide the mobile number and enter the received OTP.
• Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
• Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
• Step 5: Enter your work details (Including company name, years of service and Designation)
• Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
• Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

Steps to Apply for a Business Loan

You can now apply for a business loan through Buddy Loan by following these simple steps below:

• Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
• Step 2: Open the business loan application page.
• Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
• Step 4: Choose if you have a Business Proof (Yes/ No)
  • If ‘Yes’ (If you have a business proof), enter your business and personal details.

  Or

  • If ‘NO’ (If you do not have a business proof), choose the profession type and enter your personal details.
• Step 5: Provide income details and Click the ‘Submit’ button.