Most taxi buyers in India finance their purchase through a commercial vehicle (CV) loan. With competitive interest rates, high LTV (loan-to-value) ratios, and flexible tenures, CV loans make it easy to acquire a taxi with limited upfront capital. Here's everything you need to know.
Top Banks & NBFCs for Commercial Vehicle Loans (2026)
- SBI (State Bank of India): 8.5–11% interest, up to 90% LTV, 5-year tenure
- HDFC Bank: 9–12.5% interest, fast approval, wide network
- ICICI Bank: 9–13% interest, online application, good for used vehicles
- Axis Bank: 9.5–13% interest, flexible repayment
- Mahindra Finance: Specializes in rural/semi-urban CV loans, 11–16%
- Shriram Finance: Best for used commercial vehicles, 13–18%
- IIFL Finance: Quick approval, higher rates for used vehicles
- Bank of Baroda: Competitive rates for new commercial vehicles
Loan Parameters Explained
- LTV (Loan-to-Value): How much of the vehicle's price the bank will finance. New vehicles: up to 90–95%. Used vehicles: 60–85% depending on age.
- Down payment: Typically 10–40% depending on vehicle age and your credit profile
- Tenure: 1–5 years for new vehicles, 1–3 years for older used vehicles
- Interest rate: 8.5–18% depending on bank, vehicle type, and credit score
- Processing fee: 0.5–2% of loan amount
Eligibility Criteria
- Age: 21–65 years
- Minimum income: ₹15,000–25,000/month depending on bank
- Work experience: 1–2 years minimum in transport or any business
- CIBIL score: 700+ preferred (some NBFCs approve from 650)
- Existing driver-partners on Ola/Uber: Many banks have tie-ups with cab aggregators for faster approvals
- First-time buyers: May need co-applicant or guarantor for approval
Documents Required for CV Loan Application
- KYC documents: Aadhaar, PAN card, passport or driving licence
- Address proof: Utility bill, bank statement, or Aadhaar
- Income proof: Last 6 months bank statements, ITR for 2 years if self-employed
- Driving licence: Must be valid for commercial vehicles (LMV Transport badge)
- Vehicle documents: RC book, invoice (new) or sale agreement (used)
- Photograph: Recent passport-size photos
Tips to Get Approved Faster and at Better Rates
- Check and improve your CIBIL score before applying: Pay all existing EMIs on time for 6 months
- Show stable income: Bank statements showing regular credits improve approval chances
- Apply to banks where you have a salary or savings account — existing relationship helps
- Consider a shorter tenure: Higher EMI but significantly lower total interest paid
- Use Ola/Uber driver loan programs: Both platforms have tie-ups with NBFC partners for faster approval
- Don't apply to multiple banks simultaneously: Each application creates a hard inquiry and can lower your score
EMI Calculation Example
Loan: ₹5 lakh at 11% interest for 3 years:
- Monthly EMI: ₹16,370
- Total interest paid: ₹89,320
- Total repayment: ₹5,89,320
- Tip: Prepay when possible — even ₹5,000 extra/month can save ₹30,000+ in interest
Government Schemes for Taxi Financing
- MUDRA Loans (under PM MUDRA Yojana): Up to ₹10 lakh for transport businesses at preferential rates
- PM SVANidhi: Working capital loans for small transport operators
- PMEGP (Prime Minister's Employment Generation Programme): Subsidized loans for new transport enterprises
- State transport corporation schemes: Many states offer subsidized loans for EV commercial vehicles
Loan Rates for Tempo Traveller & Force Traveller
Tempo Traveller and Force Traveller loans are treated as light commercial vehicle (LCV) financing, a slightly different bracket from taxi sedans since these are higher-value tour/staff-transport vehicles. Interest rates for a new or nearly-new Tempo/Force Traveller typically run 9.5–14% with 75–90% LTV on new vehicles and 60–75% on used ones, given their higher resale value and steady demand from tour operators and corporate transport contracts. Lenders like SBI, HDFC Bank, and Mahindra Finance actively finance this category; NBFCs specializing in tour-vehicle financing may offer faster approval but at 1–3% higher rates than PSU banks.