How to Finance an E-Rickshaw in India
E-rickshaws are pretty popular in India, with many people using them as a mode of commute, especially in small towns and cities, offering an affordable and green way to generate a steady income. If you’re considering purchasing an e-rickshaw, one of the great things is that you can finance it through a loan, and we can tell you how to do so.
Choose the Right E-Rickshaw
Before you start a loan application, you need to choose the model of the E-Rickshaw that you want. Make sure you do thorough research so that it falls within your budget and needs. You should consider its battery life, how many passengers it can carry, after-sales service, and availability of spare parts. Generally, bigger brands typically have better resale value, more service options, and will therefore bring more value for your money if you decide to sell the e-rickshaw later.
Know your Eligibility
Most types of banks and NBFCs, like Mahindra Finance, provide e-rickshaw loans. The eligibility requirements are pretty basic. You need to:
- Be 21 – 60 years of age
- Earn some form of stable income or earning potential
- Have valid ID and address proof
- Proof of vehicle quotation from an authorized dealer
- If you don’t have a credit history, Mahindra Finance considers informal sources of income as well, even if you’re a first-time borrower.
Loan Amount & Tenure
You can get 100% funding for the on-road price of the E-Rickshaw, which includes registration and insurance. Repayment usually occurs between 12 and 36 months. You can choose the tenure based on what you can afford.
EMI Calculations
Use the EMI calculator designed by Mahindra Finance to calculate what you believe your monthly repayments to be, up front. This way, when you’re planning your budget, you know what exact EMIs you have to work with, as well as knowing what your vehicle repayments will look like, so that you don’t fall behind on your payments. An average e-rickshaw EMI is affordable and suited for any daily income earner.
To calculate the EMI, just visit the Mahindra Finance website, enter the loan amount, interest rate, and tenure, and then press the calculate button. You’ll have the EMI amount in seconds.
Documentation Needed
Most lenders will require the following documentation:
- Aadhaar card
- PAN number
- Bank statements or proof of income
- Vehicle quotation
- Few passport-sized photographs
Mahindra Finance also helps earners who mainly earn in cash with a simplified verification and documentation process.
Conclusion
Getting an e-rickshaw loan is a smart choice when it comes to financial independence. Whether you’re a first-time buyer or looking to expand your fleet, Mahindra Finance is capable of working with you to help you get there with sustainable loan options and terms when securing a loan. With minimal paperwork and fast processing, your journey toward income generation can begin in just a few days.
