Multi Utility Vehicle Financiers

The demand for the multi utility vehicles (MUVs) in India too has shown some improvement recently. And this rise is demand has been similarly backed up with increased financing options too. All the major banks in India have entered into the auto financing realm in a big way and are getting the dividends too. ICICI Bank, HDFC Bank, Standard Charted Bank, Kotak Mahindra in the private sector, State Bank of India, Union Bank of India and others in the public sector and some auto finance divisions of the automobile companies like Tata Finance all have emerged as leading multi utility vehicle financiers .

The leading MUV financiers provide the finances to any individual with a degree of substantial financial stability. The loan amount varies, from a few thousands to lakhs, depending upon the precise needs of the consumers and overall terms. Finances usually hovers about 85% of the vehicle that however could be exceeded in specific cases.

On service charges, the financiers usually ask for a 2.5% of financing amount or a specified sum and origination charges. In case of prepayment, some of them ask for penalty that goes to the tune of 4% of the principal outstanding with the borrower. Finally, service tax and other government taxes are levied as applicable from time to time.

In terms of finances, the rates of interest keep on changing from period to period. Further, the loan amount, period of repayment and the borrower's ability to payment are the other factors that too are considered while allocating finance for buying a MUV. In addition to, the types of finance include MUV finance for a new vehicle, used vehicle or a refinance balance transfer.

Most of the banks and financial institutions in the field of multi utility vehicle finance provide for financing of MUVs belonging to the Tata Motors, Mahindra & Mahindra, Hindustan Motors and others. Here too, the Tata Finance being one of the financing arms of Tata Motors account for a substantial chunk of MUV market as it provides for both the financing option as well as a range of MUVs.