Car Loans for Com­mer­cial Pur­pose And a fund trust that makes it pos­si­ble

Consumer Voice - - Bfsi -

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.

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