Features and benefits of dealer financing
-
Loan up to Rs. 80 lakh
Get loan approval without pledging assets as security and ensure optimal cash flow.
-
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
Expedite loan processing and access special benefits when you apply using our pre-approved offers.
-
Long tenure
Choose a repayment duration from 12 months to 96 months to keep your EMIs reasonable.
-
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.
Eligibility criteria and documents required
Availing of dealer financing is easy since you only have to meet our simple criteria:
-
Age
24 to 80 years* Years.
(* age should be 80 years Years at the time of loan maturity)
-
Nationality
Resident Indian citizen
-
Work status
Self-employed
-
Business vintage
Minimum 3 years
-
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 | 14% to 25% per annum |
| Processing fees | Up to 4.72% of the loan amount (inclusive of applicable taxes) |
| Bounce charges | Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
| Flexi Facility Charge | Term Loan - Not applicable Flexi Term Loan (Flexi Dropline) – Up to Rs. 999/- (inclusive of applicable taxes) Flexi Hybrid Term Loan (as applicable below) - *The Flexi charges above will be deducted upfront from the loan amount |
| Penal Charge | Delay in payment of instalment(s) shall attract Penal Charge of 36% per annum instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Prepayment charges | Full Pre-payment
Part-prepayment –
|
| Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from loan amount |
| Annual maintenance charges | Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) of the Dropline Limit (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Term Loan: Up to 1.18% (Inclusive of applicable taxes) of the Dropline Limit during Initial loan tenor. Up to 1.18% (inclusive of applicable taxes) of the Total Withdrawable Amount during Subsequent loan tenure of Dropline Limit during Subsequent loan tenor. |
| Legal and incidental charges | Recovery of charges |
| Principal Holiday Facility Fees | Principal Holiday (as applicable below) - (Inclusive of applicable taxes) Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000. Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999. Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999. Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above. Note- The above principal holiday facility fees will be deducted upfront from loan amount. Loan amount includes approved loan amount, Insurance Premium and VAS Charges. |
Step-by-step guide to applying for a business loan
- 1 Click on the ‘APPLY' button on this page.
- 2 Enter your 10-digit mobile number and OTP.
- 3 Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
- 4 Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
- 5 Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid Term.
- 6 Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
- 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
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.
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.
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.
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.
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.
