Government Vehicle Loan Scheme – Carvan Fleet Financing

Vehicle finance scheme is introduced by government. The objective of this Carvan Fleet Financing is to provide facilities to business related people. The aim of this government vehicle loan is to provide financing for commercial vehicles to business related people at a low mark up of just 7%. Processing fee for this government vehicle scheme is just 5000 rupees.

Which vehicles are financed:

Carvan fleet financing covers all commercial vehicles of locally and foreign assembled. Financing is available for new as well as used vehicles.

Tenure for Financing:

Government gives a choice to financer to select tenure from 1 to 5 years according to its requirements.

How can apply for government vehicle loan:

All small business companies, medium enterprises and cooperate can apply for this vehicle loan scheme.

Lease Key money:

LKM depends on the vehicle you choose.

Down Payment:

The minimum down payment for this scheme financing is 20 % of the actual value of vehicle.

Monthly installment:

Monthly installment depends on value of vehicle you are financing and tenure you picked for financing. monthly installments include principal amount, mark-up, and insurance. Monthly installments should be deposited in your bank account before the 5th of every month.

Late payment penalty:

There is a penalty of 1 rupee per thousand per day of installment in order to late submission of monthly installments.

There are some rights and obligations to this government vehicle loan scheme.

Duties:

1. Provide all the required information on time.
2. To make payment according to the agreement.
3. To pay monthly installments on time.

Rights:

1. To receive notification of any change in terms and conditions.
2. To get payment schedule for free.