Finance
Finance For Electric Vehicle - Cargo
Yes! You read it right. We provide finance for electric vehicle – Cargo Three Wheeler.
Now run as fast as you can.
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We have partnered with PerUse to bring affordable and smart loans to our customers. With PerUse you can get access to the lowest cost loan and highest loan amount in the industry.
What’s more, there are attractive loan options available.
INTRODUCTION
A large share of EV adoption in India is being driven by Fleet Operators who are able to build minimum scale needed for customers and create necessary support eco system of charging or swapping, parking, drivers etc.
V/S small transports and single owners; Fleet Operators also fare better at attracting lenders. However, the ready access to debt finance is short lived and Fleet Operators find their books over leveraged with debt, leaving them with only 2 options; raise equity or take high risk capital.
It’s a good strategy to hire a portion of the fleet which gives an ability to scale down in case of lower demand.
THE DCO MODEL
DCO or the Driver cum Owner model is a hybrid ownership model that overcomes these issues.
In the DCO model, a single driver can own a small size fleet, starting at 1 vehicle and place it with the Fleet Operator. The loan is provided to the driver and the vehicle is registered in the driver’s name.
FLEET OPERATOR’S ROLE
The Fleet Operator provides the following
- Infrastructure of charging / swapping, parking, tech platform, supervisors etc
- Ready business
- They may also provide a Salary / Fixedrental to the driver
- Provide ~ 10% of the cost of the vehicleas a loan default guarantee (FLDG) to the bank
5. In case of the default, Fleet Operators can find a substitute driver who can take over the loan and the vehicle
ADVANTAGE OF DCO MODEL
1. Fleet Operators can scale their fleet rapidly. With the same amount of capital, fleet operators can access almost 10 times the number of vehicles
2. Ability to scale down without incurring large, fixed costs and lesser debt on the books
3. Since the drivers own the vehicle, they are likely to take better care of the asset
4. Lower fixed costs in terms of driver salary
WHY FLDG?
With FLDG, the lenders to feel more secure and hence increase their loan % (LTV) and lower down their interest rate. It also allows those drivers to get loan, who would not qualify for a loan otherwise
Fleet Operators can get also into better contracts with the drivers and demand higher loyalty from them.
PerUse is enabling loans under DCO model. It also has a unique Kilometer based loan repayment plan
To know more Click Here
Distance based Model (PerUse)
In the PerUse model, the loan payment is linked to the usage of the vehicle. If the vehicle is driven lesser then the monthly EMI is lesser and vice-versa. Instead of the fixed EMI, now payment can be based on the kilometres driven.
The main advantage of PerUse model is that it reduces the fixed payment burden. This mainly helps in slow months
To know if you qualify for the loan and interest rate etc please click the following link
