Multi Utility Vehicle Loans

The concept of a multi utility vehicle (MUV) is still to be popular in India. However, increasing awareness about its benefits as a family vehicle and advantage of being a fast moving long distance vehicle has ensured that there is a good demand for MUVs and the financing and loan options too are available. Hence, one comes across a number of financiers willing to provide multi utility vehicle loans. The leading players in the multi utility vehicle loans are ICICI Bank, HDFC Bank, Standard Charted Bank, Kotak Mahindra, CitiBank, State Bank of India and Tata Finance.

The leading MUV financiers provide loans to an individual with a degree of substantial financial stability. The loan amount varies, depending upon the needs of the consumer and his financial state as determined by the MUV loan provider. Loan providers provide with a loan amount in the range of about 85%-90% of the ex showroom price of the multi utility vehicle.
On service charges, the loan providers usually ask for a 2.5% of loan 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. 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.

The popular range of multi utility vehicles for loans belongs to the stable of Tata Motors and Mahindra & Mahindra . Though there are other players in the fray too yet on account of the variants and exciting features that these companies have put in on their MUVs, their dominance in the Indian MUV market share quite clearly reflect that.

To know more about the various aspects of multi utility vehicles, browse through the pages of automobileindia.com.