For most Delhi cab drivers, paying ₹3–5 lakh upfront for a taxi is not realistic. The good news: used commercial vehicles are routinely financed on EMI, and your daily earnings can comfortably cover the monthly instalment. This guide breaks down the down payment, interest rates and lender options for buying a taxi on EMI in Delhi in 2026.
How Much Down Payment Do You Need?
For used commercial vehicles, lenders typically finance 70–80% of the valuation, so you need a down payment of 20–30%. On a ₹3 lakh taxi, expect to put down ₹60,000–90,000. A larger down payment lowers your EMI and improves approval odds, especially for first-time borrowers without a long credit history.
Interest Rates & Lenders in Delhi (2026)
- NBFCs (Shriram Finance, Mahindra Finance, HDB): 14–20% per annum, easiest approval for cab drivers, fund older vehicles
- Private banks (HDFC, ICICI, Kotak): 11–15% per annum, lower rates but stricter on vehicle age and income proof
- Cooperative banks & local financiers: flexible but verify terms carefully and avoid informal lenders charging hidden rates
Documents Required for a Taxi Loan in Delhi
- KYC: Aadhaar, PAN and a Delhi address proof
- Income proof: bank statements, or driver income declaration for self-employed applicants
- Vehicle papers: RC, valid fitness certificate, commercial permit and insurance of the taxi being financed
- Photographs of the vehicle and a valuation report from the lender
- Existing commercial driving licence (badge) for the buyer
Will Your Daily Earnings Cover the EMI?
A typical Delhi taxi nets ₹1,200–1,800 per day after fuel on Ola/Uber. The EMI on a ₹2.4 lakh loan (80% of a ₹3 lakh car) over 36 months at 16% works out to roughly ₹8,500 per month — under ₹300 per day. Even on modest earnings, the vehicle pays for its own instalment with room to spare. Browse financeable taxis on Buy Sell Taxi and ask sellers which lenders they have worked with.