Vendor finance is lending provided by a company to a buyer interested in the vendor's products or property. It is a great way to start owning and paying off your home even if you have bad credit history or don’t have a standard deposit.

Vendor finance is lending provided by a company to a buyer interested in the vendor's products or property. It is a great way to start owning and paying off your home even if you have bad credit history or don’t have a standard deposit.

Products Portfolio

Our suite of products is designed to meet unique requirements of different segments:

  • Tier 1 vendors of large OEM based on strength of financial statements.
  • Tier 1/2 vendors, dealers of Auto OEM’s based on collateral security of immovable property.

Our product portfolio is designed to meet your short term working capital and long term expansion requirements. Broadly, the product portfolio could be categorized as under:

  • Purchase Order (PO) / Short Term Revolving Line (STRL)
  • Term loans for capital expenditure
  • Term loans for inorganic growth / Buy Back / General corporate loan etc.
  • Loans against property (LAP)

Features and Benefits

Using vendor finance may enable you to achieve ownership of the property/product without first qualifying for a mortgage. Although risky for the lender, it is definitely valuable for the buyer. Here are a few features to add to this great scheme:

Part prepayment facility.

Subject to you clearing your first EMI, you are eligible to prepay your loan at any time without incurring any prepayment charges.

Nil foreclosure charges

Now you can choose to foreclose your loan anytime during your loan tenor without paying any foreclosure charges.

Transparency and flexibility

Within a week of disbursement of your loan, you receive a Welcome letter that covers all the necessary details of your loan from repayment schedule, insurance details, applicable charges and benefits. This will cover all the information you may need so that the only surprises you have are pleasant ones.
Best in class insurance schemes: Group Suraksha from Bajaj Allianz

  • No medical tests for Life Insurance up to Rs. 100 lakhs for age up to 50 years
  • Level term plan that covers you for the complete amount despite reduction/ prepayment of loan amount
  • Coverage for the complete tenor of the loan

Online account access

Get all information about your loan like repayment track, interest certificate, payment schedule etc. through our digital customer portal. Just log in with your loan account number and access whatever information you want about your loan.

Secure and state of the art document storage facility

We understand how important your documents are for you. Through our strategic partnership with one of the leading storage facilities in India, covering over 5 lakh sq ft of storage space and state of the art security systems, we ensure your documents are safe with us. After the completion of your loan term, you can retrieve the documents any time.

Eligibility and Documents

You could be one of the following, engaged in the supply and distribution chain of large Auto OEM’s.

  • Proprietorship firms
  • Partnership firms
  • Private limited company
  • Public limited company

Documents required

 

Firms & companies*

Application form

Yes

Guarantor

Yes

Photograph

Yes (Partner's/ Director's)

Identity proof

Yes (Partner's/ Director's)

Address proof

Yes

Signature proof

Yes

Date of birth proof

Yes (Certificate of incorporation)

Income details

Yes (IT Returns & Balance Sheet & P/L Account statement for the last 3 years)

Bank account statements

Yes (For Last 6 months)

Partnership deed

Yes (for partnership)

MOA/AOA

Yes (for companies)

*Other relevant documents will be required depending upon the segment and profile of the applicant

How to Apply

For your financing requirements, please call us on 1800-209-4151

FAQ


Q1. What is EMI?

A. EMI stands for Equated Monthly Installments. This installment comprises both the principal and interest component. EMI provides you the ease and benefit of paying back your loan amount in over a period of time through smaller tranches of pre-defined payments.


Q2. What is Vendor Finance?

A. Vendor Finance is a loan/limit offered for meeting funding requirement towards working capital/ capital expenditure in auto segment space for the supply and distribution chain for all large Auto OEMs against the hypothecation/mortgage of the assets.


Q3. What are the various types of loans under Vendor Finance?

A. Primarily there are four types of loans under this category:

Purchase Order (PO) Finance:
This facility is offered only to tier 1 vendors of Bajaj Auto Ltd (BAL) with max tenor of 60 days on a revolving basis against supplies to BAL.
STRL (Short Term revolving Loan):
This facility is offered to tier 1 vendors of large OEM’s against hypothecation of current assets/receivables to meet their working capital requirement.
Term Loan:
Term loans are offered to vendors to meet their capex/expansion requirement against hypothecation/mortgage of moveable/immovable assets on sole /first Pari Passu basis.
Loan against Property (Up to 15 yrs):
This facility is offered to vendors/dealers to meet their working capital/business expansion needs against mortgage of immovable properties.


Q4. Who are eligible for Vendor Finance?

A. Please refer to the Eligibility and Documents section for details.


Q5. How is the eligibility for a loan and the loan amount determined?

A. Eligibility and loan amounts are determined on the basis of internal policies of Bajaj Finserv Lending.


Q6. What is the maximum loan amount one can get as Vendor Finance?

A. Maximum loan amount is not a constraint. However, loan amount will depend on various criteria and internal policies of Bajaj Finserv Lending.


Q7. What is base rate and on what basis does it change?

A. This is the internal benchmark reference rate for us and is determined based on the market conditions and the cost of funds for the company. Depending on the change in cost of funds based on various economic conditions, Base rate changes accordingly.


Q8. How often do Interest rates change?

A. As per our re-pricing policy, interest rates are reviewed monthly. In case of any change in interest rate on your loan, you will be informed proactively.


Q9. Will an interest rate change affect a one-month-old customer also?

A. As per our re-pricing policy, interest rates are reviewed monthly. In case of a customer who has taken a loan only a month ago, the interest rate change will be applicable.


Q10. How do I know what is my new rate of Interest?

A. There is a margin set on your loan against the prevailing company Base Rate at the time of the loan disbursal. This is clearly mentioned as a part of the sanction letter. The margin is constant and does not change over the tenor of the loan. For example, If  Base rate is  11.50% and your margin is (2 %), your effective rate of interest is 13.5%. In case the Base rate reduces to 11%, your effective rate changes to (11+2) = 13%. We proactively send a communication to you in case of any change in the Base rate.


Q11. The interest rate on my loan is fixed for one year. What is the impact of change in Base Rate on my loan?

A. In case of a loan with fixed rate of interest, any change in base rate does not affect the effective interest rate.


Q12. I have taken a sanction on floating rate and have not availed any disbursement till date. How will a change in Base Rate impact me?

A. You are given a margin against the company base rate. This is mentioned in the terms & conditions at the time of sanction. In case you take the disbursement within the validity period mentioned in your sanction letter, your effective rate of interest will be calculated on the current base rate. For example, if base rate at the time of loan sanction is 11.50% and margin offered to you is (+2.00%), the effective rate will be 13.5%. In case the base rate is reduced to 11.00%, your effective rate of interest will be (11.0%+2.00%) = 13.0%


Q13. Can I repay the loan ahead of schedule?

A. You can choose to repay your loan anytime during the tenor of the loan, after payment of the first EMI. What’s more, we do not charge any penalty on foreclosure.


Q14. Can I make part payments on my loan?

A. You can prepay upto 6 times in a calendar year at any interval with the minimum amount per prepay transaction being not less than 3 EMIs. There is no limit on the maximum amount. This is subject to your clearing your first EMI.


Q15. What is my new EMI? How much has my EMI changed by? Will my current EMI cheques/ECS have to be changed and where do I have to submit them?

A. Any rate change may impact your EMI or tenor. We proactively keep you informed of any such changes. In case a change, you need to submit revised payment instrument to us.


Q16. What are the benefits or advantages of taking a Vendor Finance loan from Bajaj Finserv Lending?

A. Please check our Features and benefits section for more details.


Q17. How do I apply for a Vendor Finance loan?

A. Check our ‘How to apply’ section for more details


Q18. How do I repay the loan?

A. You can repay the loan in Equated Monthly Installments (EMIs) using the ECS facility or through post-dated cheques.

Contact Us

Not yet an existing customer?

Just visit our branch or call us at 18002094151.

For existing customers

IVR - toll free 

  • Dial 18002094151
  • Enter your 7-digit BFL Customer ID
  • Select from various IVR options
  • Access IVR in 10 languages: English, Hindi, Bengali, Marathi, Punjabi, Gujarati, Tamil, Telugu, Kannada and Malayalam  
  • Access to all loan details

Email

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