Features and benefits of dealer financing

  • Loan up to Rs. 75 lakh

    Loan up to Rs. 75 lakh

    Get loan approval without pledging assets as security and ensure optimal cash flow.

  • Flexi advantage

    Flexi advantage

    Choose the Flexi facility to borrow from your sanction at any time and pay interest only on the amount you use.

  • Special deals

    Special deals

    Expedite loan processing and access special benefits when you apply using our pre-approved offers.

  • Long tenure

    Long tenure

    Choose a repayment duration from 12 months to 96 months to keep your EMIs reasonable.

  • Cost-effective repayment

    Cost-effective repayment

    Our competitive interest rates help you repay affordably. Plan your repayment using our Business Loan EMI Calculator.

As a dealer or business person running a franchise, you need capital to ensure smooth operations. Get financing on easy terms with the dealer finance offered by Bajaj Finserv. With this instrument, you can access ample funds and a flexible tenure to ensure that repayment remains optimal. Thanks to relaxed eligibility criteria and minimum requirements for documentation, you can get swift loan approval in just 48 hours*.

To manage cash flow more easily, choose the Flexi facility. This allows you to reduce your EMIs up to 45%* by paying only interest as EMIs during the initial tenure.

When should dealership offer dealer financing?

Dealership should offer dealer financing when they want to attract more customers, increase sales, and earn more profits. Dealer financing can help customers who have low credit scores, need quick and easy access to funds, or prefer the convenience of getting a loan at the point of purchase. Dealer financing can also give the dealership a competitive edge over other retailers who do not offer such an option.

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Eligibility criteria and documents required

Availing of dealer financing is easy since you only have to meet our simple criteria:

  • Age

    Age

    24 years to 80 years.
    (* age should be 80 years at the time of loan maturity)

  • Nationality

    Nationality

    Resident Indian citizen

  • Work status

    Work status

    Self-employed

  • Business vintage

    Business vintage

    Minimum 3 years

  • Credit Score

    Credit Score

    685 or higher

These are the documents that you need to submit:

  • KYC documents
  • Proof of business ownership
  • Other financial documents

Interest rate and fees applicable

To ensure that you’re well informed about the different fees and charges applicable, take a look at the following table:

Type of fee Applicable charges
Rate of interest 9.75% - 30% per annum
Processing fees Up to 3.54% of the loan amount (inclusive of applicable taxes)
Bounce charge In case of default of repayment instrument, Rs. 1,500/- per bounce will be levied.
Document processing charges Up to Rs. 2,360/- (inclusive of applicable taxes)
Flexi Fee

Term Loan - Not applicable

Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes)

Flexi Variant (as applicable below) - A fee will be deducted upfront from the loan amount

  • Up to Rs. 5,999/- (inclusive of applicable taxes) for loan amount less than Rs. 10,00,000/-
  • Up to Rs. 7,999/- (inclusive of applicable taxes) for loan amount from Rs. 10,00,000/- to Rs. 14,99,999/-
  • Up to Rs. 12,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-
  • Up to Rs. 15,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above

*Loan Amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.

Penal Charge Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.
Prepayment charges

Full Pre-payment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment.
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Part-prepayment

  • Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment.
  • Not applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi.
Stamp duty (as per respective state)
Payable as per respective state
Mandate rejection charges Rs. 450/- per month from the first month of due date for mandate rejected by customer's bank until the new mandate is registered
Broken Period Interest/ Pre-EMI Interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, broken period interest is recovered by the following methods:

  • For Term Loan: Deducted from the loan disbursement
  • For Flexi Term Loan: Added to the first instalment
  • For Flexi Hybrid Loan: Added to the first instalment

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, interest is charged only for the actual number of days since the loan was disbursed.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount
(as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 1.18% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Initial loan tenure. Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Subsequent loan tenure.

Switch fees Up to 1.18% of the loan amount (inclusive of applicable taxes)

(Switch fee is applicable only in case of switch of loan. In switch cases, processing fees and documentation charges will not be applicable)
Mandate registration charges In case of UPI mandate registration, Re. 1 (inclusive of applicable taxes) will be collected from the customer


*Switch Fee is applicable only in case of switch of loan. In switch cases, Processing Fees and Documentation Charges will not be applicable.

Step-by-step guide to applying for a business loan

  1. 1 Click on the ‘APPLY' button on this page.
  2. 2 Enter your 10-digit mobile number and OTP.
  3. 3 Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
  4. 4 Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
  5. 5 Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid. 
  6. 6 Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’. 
  7. 7 Complete your KYC and submit your business loan application.

Our representative will guide you on the next steps. The loan amount will be transferred to your bank account upon verification of your documents.

Frequently asked questions

What is the difference between vendor financing and dealer financing?

Vendor financing is when a vendor lends money to a customer who buys the vendor’s products or services. Dealer financing is when a dealer helps a customer get a loan from a third-party financial institution.

What is meant by dealer financing?

Dealer financing is a type of financing in which the retailer helps you secure a loan through partner financial institutions. In this type of financing, a retailer offers you a loan for purchasing their products or services. The retailer sells your loan to a bank or other financial institution that collects the payments from you. This is also called an indirect loan.

How is dealer financing offered?

Dealer financing is offered by getting a commercial loan or partnering directly with a lender, such as a bank. With a bank, dealers buy a loan from them and then sell it to the customer, and it is the most common form of dealer financing. The dealer can mark up the interest rate quoted by the lender (the buy rate) and keep the difference as a profit. The dealer can also sell the loan to the lender at a discount and let the lender collect the payments from the customer.

What businesses commonly use dealer financing?

Dealer financing is prevalent in an auto dealership. Independent car dealer financing is considered a very profitable business. High-end music systems or entertainment equipment dealers might also benefit from dealer financing, and it is also a great idea to boost sales. Other retailers, such as boat dealers, motorcycle dealers, and furniture stores, might offer this type of financing as well.

How do borrowers benefit from dealer financing?

Borrowers can benefit from dealer financing in several ways, such as:

  • Convenience: Borrowers can get the loan at the point of purchase without having to shop around for other lenders or wait for approval.
  • Negotiation: Borrowers may have some room to negotiate the loan terms, such as the interest rate, the down payment, or the duration.
  • Inclusion: Borrowers who have low credit scores or limited credit history may have a better chance of getting approved for a loan through dealer financing than through other sources.
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