Car Loans for Commercial Purpose And a fund trust that makes it possible
On-demand taxi services have taken off in India, and how. With a click of an apps button, one can now have a taxi reaching the doorstep within 5 to 10 minutes. It seems metros like Delhi and Bengaluru are full of taxis on standby, never more than a few minutes away. Clearly, more and more cars are doing commercial runs, which means that more cars are being bought for commercial purposes. The demand for taxi service is growing not only among regular individual travellers but also in sectors such as information technology and information technologyenabled services, whose huge workforce working in various day and night shifts need round-theclock transportation. So as to facilitate the demands of these and other emerging sectors, the government has set up a Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to encourage banks to give out loans with a sense of security. Enterprises can now raise funds to replace their old cars or buy a new fleet altogether, among other things. How does this scheme work and who all are eligible? This report throws light on these and other salient features of the scheme.