Poonawalla Fincorp’s Commercial Vehicle Loans: A New Era of Business Financing

Poonawalla Fincorp Limited is set to launch its Commercial Vehicle Loan in March 2025, marking a significant milestone in the commercial vehicle financing sector. Designed to cater to the diverse needs of businesses, this initiative will provide tailored financial solutions for both new and used commercial vehicles, covering Small Commercial Vehicles (SCVs), Light Commercial Vehicles (LCVs), and Intermediate and Heavy Commercial Vehicles (I&HCVs). With flexible loan amounts and repayment options, Poonawalla Fincorp is poised to empower businesses across India.

Targeting Underserved Markets

The company’s initial focus will be on tier 2, tier 3, and tier 4 markets, where demand for commercial vehicle financing is high but access to organized lending is limited. Poonawalla Fincorp plans to enter 68 locations across 12 states in the first phase, with plans to expand to 400 locations across 20 states by the next financial year. This strategic expansion aims to tap into the untapped potential of the used commercial vehicle segment, which saw disbursals of nearly INR 1.50 trillion in 2024.

Simplifying the Customer Journey

To enhance customer experience, Poonawalla Fincorp is introducing an innovative digital platform that minimizes documentation and speeds up loan processing. Features like e-KYC, Digilocker access, and Aadhaar-based OTPs will enable customers to submit documents digitally, with loan approvals and disbursals completed within 72 hours. This customer-centric approach is expected to set a new benchmark in the industry.

Focus on High-Growth Segments

Poonawalla Fincorp’s strategic focus will be on the used commercial vehicle category, which is expected to contribute 80 percent to its lending portfolio. The company will also target high-yield segments in the new commercial vehicle category, including small and light commercial vehicles. Additionally, the introduction of Construction Equipment loans will cater to contractors, hirers, and captive customers, further diversifying its offerings.

Arvind Kapil, Managing Director & CEO of PFL, in a company statement, said, “The commercial transport sector is key to our growing economy. Our Commercial Vehicle Loan meets transporters’ financial needs with simple processes and less paperwork. It also strengthens our range of secured loan products.

Conclusion: Driving Business Growth

With its innovative approach and customer-centric solutions, Poonawalla Fincorp is set to redefine the commercial vehicle financing landscape. By empowering businesses with accessible and flexible financing options, the company is driving growth and innovation in the industry.