Poonawalla Fincorp’s Commercial Vehicle Loans: Fueling Business Success

Poonawalla Fincorp Limited is set to launch its Commercial Vehicle Loan in March 2025, offering tailored financial solutions for both new and used commercial vehicles. This initiative will cover all key manufacturers and vehicle categories, including 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 empowering businesses to achieve their goals.

Targeting High-Growth 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 expansion strategy aims to tap into the vast potential of the used commercial vehicle segment, which contributed nearly INR 1.50 trillion in disbursals in 2024.

Simplifying the Customer Journey

To enhance customer experience, Poonawalla Fincorp is leveraging technology to minimize documentation and accelerate loan processing. The company’s digital platform will integrate over 1,300 Road Transport Offices (RTOs) and enable customers to submit documents digitally through e-KYC, Digilocker, and Aadhaar-based OTPs. Loan approvals and disbursals will be completed within 72 hours, ensuring a seamless experience for customers.

Focusing on High-Yield 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.