The radio taxi business in India has seen a big boom in the last few years. Whether it’s the number of taxis or users, both have seen an upward swing. Analysts foresee an even higher growth in future. Viable basic fare along with lucrative incentives makes radio taxis an ideal choice for customers and drivers alike. However, using a rented car restricts a driver’s earnings considerably, as they work on fixed salaries. This is where Capital Float’s Taxi Finance steps in as an ideal taxi loan choice for drivers who aspire to have a car of their own and earn more.
Our association with some of the largest taxi aggregators in India makes taxi financing a smart choice for an Uber loan or other kind of taxi loans. It provides an opportunity for drivers across the country to purchase cars and fulfill their dream of becoming microentrepreneurs. Securing a taxi loan from a traditional finance institution or bank can often be a tough task. With multiple evaluations and lengthy procedures, getting a taxi loan successfully from these institutions is a time-consuming prospect. Failing to meet any of their highly demanding requirements can lead to loan rejection. In contrast, Capital Float offers an easy process for procuring a taxi loan with fast processing and minimal documentation.
To successfully avail of a taxi or Uber loan, there are some basic requirements borrowers need to fulfill. If their application meets these requirements, they can get taxi loans like Uber loan and Ola finance surprisingly fast. Here is the list of taxi financing requirements, which are needed for a taxi loan.
1. Down payment: The applicant is required to pay a certain sum as down payment for availing taxi loans. The high down payment required by traditional lenders and banks often deters drivers from owning a car of their own. This is where Capital Float’s taxi financing differs from conventional lenders. Capital Float provides a taxi loan for an easily affordable down payment — one of the lowest in the industry.
2. Valid driving license: Borrowers must have a valid driving license to apply for an Uber loan. Not having one will mean their application could be rejected.
3. Valid taxi permit license/badge: The applicant must have a valid taxi permit license or badge to be eligible to apply for taxi finance. The time period for the taxi permit/badge can vary with lenders. At Capital Float, the applicants need to have a valid taxi permit license/badge that is one year old for new drivers with the taxi aggregators.
4. KYC documents: To be eligible for taxi financing, applicants need to submit KYC (Know Your Customer) documents at the time of application. At Capital Float, we request minimum documentation and ensure a hassle-free processing of the taxi or Uber loan. The application process for taxi loan at Capital Float happens online. This makes the process more convenient where the applicant can upload the documents directly with minimal paperwork.
Though all of the above are mandatory requirements for getting any kind of taxi loan including Uber loan and Ola finance, there are certain other things the applicant should keep in mind while applying for an Uber loan. This makes it easier for drivers or applicants to pick a lender that suits them the most.
Flexibility in repayment: The repayment of taxi loans can sometimes stretch the borrower beyond capacity with equated monthly payments or EMIs. If drivers have a more flexible option for repayment, it can bring down the pressure of EMIs to a large extent. Capital Float provides a weekly repayment option for taxi loans. This reduces the size of the installments and ensures payments are not carried over/missed. This can be a big boon in a business where daily earnings are dependent on factors beyond the control of the borrower.
Processing fee: Besides having time-consuming and complex processes, traditional banking institutions levy a processing fee. This can vary depending upon the lender and generally tends to be higher in traditional banking institutions. At Capital Float, however, we charge only a minimal amount as processing fee in a bid to keep things transparent and enable our customers.
Ease of application: It’s the age of digitization and online is the preferred channel for an taxi loan application. Capital Float’s taxi loan applications can be made online, require minimal documentation for processing and are disbursed within 3 days.
Hidden charges: Pre-closure charges which are levied by banks and conventional lenders are an additional burden for borrowers. These charges prevent borrowers from closing the loan early even if they can. Capital Float levies no pre-closure charge and borrowers are free to close the taxi loan before the completion of the loan tenure.
Collateral: Typically, banks tend to sanction a taxi loan if the applicant has substantial collateral, which can be used to recover a bad debt. Capital Float however disburses taxi loans without requesting for collateral, thus improving the chances of many applicants to secure an Uber loan or other taxi financing.
Processing time: Applicants who wish to get a car of their own at the earliest are discouraged by the long time taken to process traditional loans. Due to late loan disbursements, they end up losing valuable business. Capital Float’s taxi financing process is prompt, and funds are credited within just 3 days to enable drivers to start earning at the earliest.
Capital Float’s taxi financing with minimal requirements along with prompt processing makes it an ideal choice for aspiring microentrepreneurs who hope to succeed in radio taxi business.
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The COVID-19 pandemic is an unforeseen shock for the Indian economy. The country is expected to experience a lengthy economic recession with extended lockdowns in several states. Due to the Coronavirus outbreak, the global economic crisis, and subsequent instability in production and supply chains is also likely to be perpetuated.
How are the people of India affected?
Coronavirus has disrupted the lives of millions of Indians. Incomes have reduced and several people are experiencing a financial crunch, and as a result, it has become challenging for households as well. Many people have lost their jobs; many others are struggling to run their businesses.
Has the Government extended dates for filing ITR?
In the context of COVID-19 and to provide the people with immediate relief, the Government, in a press conference on May 13, 2020, has announced that the Income Tax Return (ITR) filing deadline has been extended to November 30, 2020 for the financial year 2019-20. Earlier, it was decided that the deadline would be 31st July 2020. But, looking at the condition of the economy, the Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman decided to extend the date of the deadline for filing of ITR even further to November 30.
The Government has not only extended the date for ITR filing but has also extended the tax audit from September 30, 2020 to October 31, 2020. The TDS and TCS rates were reduced by 25% to provide more funds to the taxpayers for the period between 14 May to 31 March. Furthermore, in April 2020, they announced that the pending income tax refunds up to INR five lakhs would be released to the taxpayers to benefit them in these times of crisis.
The Government has authorized certain financial measures to increase the liquidity of tax paying individuals in India. Prudent decision-making and personal financial management will be key to ensuring that funds are available to run households for the foreseeable future and in case of contingencies.
Oct 24, 2018
The Union Budget for FY18-19 was much anticipated, owing to reasons more than one. The first full-fledged financial plan after the introduction of GST and the last one by the Narendra Modi-led government, the most significant event of the Indian financial year is over. With the national polls looming in, the Union Budget rolled out by finance minister Arun Jaitely was favourable towards agriculture, rural development, social infrastructure and digital transformation. However, international mobile phone companies, bond investors, equity servicing institutions and the defence sector are at the not-so-advantageous end of the spectrum. In general, this year’s Union Budget has been a shift from the typical stance of the government that all segments need equal attention.
An industry segment that sees clear growth opportunities is retail. Amidst public opinion that the budget had not mentioned the retail segment, the various provisions have subtle repercussions that will help widen the scope of consumption. Consequently, this will have a long-term impact on retailers, where they can reap benefits from consumers with a higher expendable income.
Here are the key provisions of the Union Budget for FY 18-19 that have relevant implications for retailers.
- Reduction in Corporate Tax
With regards to taxation, the budget has declared a reduction in corporate tax to 25% for companies with an annual turnover of up to Rs 250 crore. This accounts for almost 99% of the companies in India and would have an impact of Rs 7000 crore on government finances. As only 250 companies have a turnover above the threshold value, this is a significant reduction in terms of the business turnover cutoff of Rs 50 crore that had been announced in last year’s budget for the same tax bracket.
This move has resulted in a decrease in the tax burden for small and medium businesses, who can now use these additional funds to purchase inventory or machinery, expand their premises, hire new employees or for marketing activities. In case it does not cover your entire expenses, retailers can also avail easy business finance from digitally-enabled FinTech lenders who provide customized credit products like Merchant Cash Advance.
- Increased Investments in Digital India
Lack of investment in digital infrastructure by the government has always been a pain point that has deterred the productivity and development of startups and small businesses. This is especially true for the e-commerce sector, as rural India is the driving force behind its growth. This year alone, e-tailers recorded a three-fold increase in the number of shoppers in small towns compared to metro cities.
Under the massive Rs 3,073 crore Digital India Program, over 5 lakh Wi-Fi hotspots will be set up to provide broadband access to 20 crore rural citizens in over 2,50,000 villages. This opens up an avenue for individuals in rural India to harness the Internet for trade, banking, logistics and even to avail formal finance from digital lenders. E-commerce retailers can use this opportunity to its fullest, as 55% of the 185 million active consumers are predicted to be from rural India by 2020.
- Changes in Personal Taxation
A welcome move for the salaried middle class, this budget proposed a standard deduction of Rs 40,000 for transport allowance and medical reimbursement. While this may seem irrelevant to retailers, the impact of this allowance does indeed affect them. As personal income increases, so does the disposable component. Consumer behavioral studies ascertain that the disposable income is equitable to spends on retail. Thus, the re-introduction of medical and travel benefits is a favourable budget impact on retailers.
- Refinancing for MSMEs
The micro, small and medium enterprise (MSME) sector plays a major role as India progresses towards becoming one of the biggest economies in the world. Despite contributing a staggering 15% to the country’s GDP with a high market share of 40% towards employment, these businesses have an unmet credit demand of $ 400 billion.
Acknowledging the fact, the budget declared an allocation of Rs 3794 crore to the MSME sector for credit support, capital and interest subsidy on innovation. With this reform in play, the refinancing policy and eligibility criteria under Micro Units Development and Refinance Agency (MUDRA) program will be reviewed to encourage easier financing of MSMEs by NBFCs. This impact of the budget on retailers opens plenty of avenues avail formal source of finance in a timely manner.
A unique Aadhaar-like identity for each enterprise will also be implemented for streamlining business identity. This measure can further enable Fintech lenders like Capital Float to process eKYC of enterprises swiftly and offer working capital finance in a matter of seconds.
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