Poonawalla Fincorp Ventures into Commercial Vehicle Loans: A Strategic Expansion

Poonawalla Fincorp Limited (PFL), a key player in India's non-banking financial sector, is making bold strides into the commercial vehicle (CV) loan market. This strategic expansion aims to empower transporters and fleet operators with accessible financing solutions, fueling growth in the country's ever-evolving logistics landscape.

Diverse Loan Offerings to Suit Every Need

From nimble small commercial vehicles (SCVs) to the behemoth heavy-duty trucks that crisscross India’s highways, PFL’s loan portfolio is built to cater to all. Whether customers are eyeing a brand-new fleet addition or looking for financing on a well-maintained pre-owned vehicle, the company offers tailored solutions designed to fit a range of business requirements. Competitive interest rates, flexible repayment structures, and minimal paperwork further enhance the appeal of these offerings.

Tech-Driven Efficiency: Speed and Simplicity

In an era where time is money, PFL is leveraging cutting-edge technology to streamline the lending process. The company has integrated an AI-driven assessment system that taps into verified data sources, reducing turnaround times and ensuring hassle-free loan approvals. This tech-enabled approach minimizes manual intervention, making financing smoother, faster, and more transparent.

Nationwide Rollout with a Phased Approach

Starting with 68 locations across 12 states, PFL is strategically positioning itself in tier 2 and tier 3 cities—key hubs for commercial transport activity. But that’s just the beginning. Over time, the company plans to scale up operations to 400 locations across 20 states, adopting a hub-and-spoke model to optimize reach and service delivery. Loans will be made available through direct-to-customer channels, as well as through partnerships with dealers and other channel networks.

Leadership’s Vision: Strengthening India's Transport Backbone

Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp, highlighted the significance of this new venture. He emphasized that commercial vehicles are the backbone of India’s economy, facilitating trade and commerce nationwide. By providing seamless financing options, PFL aims to support transporters in expanding their businesses with ease.

Conclusion

India’s vehicle financing market is on an upward trajectory. A report by CRISIL Ratings predicts that the vehicle loan assets under management (AUM) for NBFCs will surpass ₹8 trillion by FY 2024-25, a sharp rise from ₹5.9 trillion in 2022-23. The surge in demand for commercial vehicles, alongside increased government infrastructure spending, is driving this growth.

With this expansion, Poonawalla Fincorp is positioning itself at the forefront of this financial revolution, offering robust, customer-centric solutions that align with India’s ambitious transport and infrastructure development goals.Stay tuned with 91trucks for all the latest news and updates related to new launches, commercial vehicles and industry insights. 91trucks is the fastest-growing digital platform aimed at providing you with the latest updates and information related to the commercial vehicle industry.