Check your eligibility
What These Loans Fund
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Chassis and body cost across the s...
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Registration
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First-year insurance
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Refinancing of existing unencumber...
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Drawdown against the sanctioned li...
Who Can Consider This Loan?
- Indian resident, generally aged 21 to 65 at loan maturity
- Salaried applicants: stable employment, commonly at least one year of total experience
- Self-employed applicants: business vintage, typically two to three years, with filed returns
- Minimum income threshold that varies by lender, city and vehicle segment
- Credit score materially affects both approval and the rate offered
- Existing EMIs are counted — total obligations usually cannot exceed 50 to 55% of income
What May Not Be Funded?
- Margin money on each vehicle
- Processing and documentation charges
- Vehicles outside the categories sanctioned in the facility
- Running costs, wages and maintenance
- Drawdowns beyond the sanctioned limit
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Fleet finance funds several vehicles under a single facility rather than as individual loans. The lender assesses the business rather than each purchase, and the operator draws down against a sanctioned limit as vehicles are acquired.
The advantages compound with scale. One credit assessment instead of many, one relationship, and pricing based on the fleet's overall performance rather than on each transaction. Established operators with a good repayment record negotiate terms that no individual loan would offer.
The corresponding discipline is that the whole facility rests on the business's performance. A period of poor utilisation or a stretched receivables position affects every vehicle in the facility, not just the newest one.
Who should consider it
Transport operators running or building a fleet. Logistics companies expanding capacity. Rental and leasing operators. Businesses adding several vehicles over a year rather than one at a time.
Benefits
- One facility and one credit assessment across multiple vehicles
- Drawdown as vehicles are acquired, without fresh applications
- Pricing improves with fleet performance and repayment record
- Consolidated repayment schedule and reporting
- Ability to add vehicles quickly when a contract requires capacity
- Refinancing of existing owned vehicles into the same facility
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Chassis and body cost across the sanctioned vehicles
- Registration, permit and road tax, at many lenders
- First-year insurance, where the lender permits funding
- Refinancing of existing unencumbered vehicles, where agreed
- Drawdown against the sanctioned limit as vehicles are bought
Usually not funded
- Margin money on each vehicle
- Processing and documentation charges
- Vehicles outside the categories sanctioned in the facility
- Running costs, wages and maintenance
- Drawdowns beyond the sanctioned limit
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Check eligibility before anyone pulls your credit file We assess income, existing EMIs and profile against lender criteria first, so applications only go where they will actually qualify.
- 2 Compare on total cost, not headline rate Rate, processing fee, tenure and prepayment terms together. A lower rate with a heavy fee is often the costlier loan.
- 3 Documentation prepared once One set of documents, used across lenders, rather than assembling a fresh file for each application.
- 4 Sanction and disbursal The sanction letter states rate, tenure and charges. Funds go directly to the dealer or seller against the invoice.
- 5 Delivery, and the paperwork after it Hypothecation is noted on the RC. We flag the closure formalities so removing it later is not a scramble.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- The facility rests on the business, so a weak quarter affects your ability to draw down for every vehicle, not just the next one.
- Size the limit against realistic expansion, not aspirational expansion. An unused facility still carries commitment and documentation costs.
- Keep utilisation data. Lenders price fleet facilities on performance, and being able to demonstrate utilisation and route profitability is what improves terms at review.
- A fleet motor policy usually accompanies a fleet facility and is cheaper than individual vehicle policies. Arrange them together.
- Watch the concentration of maturities. Several vehicles reaching end of life in the same year is both a replacement cost and a revenue gap.
Documents required
- Identity proof — Aadhaar, PAN, passport or driving licence
- Address proof
- Salaried: last three months of salary slips and Form 16
- Self-employed: last two to three years of income tax returns with computation
- Bank statements for the last six months
- Proforma invoice or booking confirmation from the dealer
- Passport-size photographs
- Existing loan statements, where you are servicing other EMIs
Frequently Asked Questions
How many vehicles do I need for a fleet facility?
Lenders differ, but the structure generally becomes worthwhile from around five vehicles and clearly advantageous above ten. Below that, individual loans are usually simpler.
Do I need a fresh application for each vehicle?
No — that is the point of the structure. The facility is sanctioned once and you draw down against it as vehicles are acquired, which is considerably faster when a contract requires capacity at short notice.
Can I refinance vehicles I already own into the facility?
Usually yes, where they are unencumbered and within the lender's age criteria. It is a common way to release working capital while consolidating the borrowing relationship.
How does pricing improve with scale?
Lenders price fleet facilities on the business's performance rather than on each transaction. A demonstrated record of utilisation, route profitability and clean repayment moves the rate at review in a way that individual loan applications never do.
What happens if business slows?
The facility is assessed on the business, so a sustained downturn can affect your ability to draw down further. Maintaining a buffer and keeping the lender informed early is considerably better than a surprise at review.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.