Finance for Automobile Business

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The most profitable industry across the globe is the automobile industry and it is spread across Micro, Small, Medium and large industries. India is the fourth largest in the world in the automobile industry. Also, it is the second largest revenue generator after agriculture and contributes to India’s economy in a big way.

According to a recent survey, the automobile industry is at present $74 Billion industry in India and by 2026 is poised to become $300 billion and increase of CAGR up to 15 %. It is the main revenue generator to metro cities, suburban and rural areas. This is possible because of the increasing demand for vehicles and increasing spending capacity of the people of all sectors and has got tremendous growth and opportunities to the business owners and entrepreneurs.

We at FlexiLoans will offer you business loan to set up automobile business. In this section, we have given an insight into what automobile business you can start, how much investment is required, which places that best suit for automobile business, etc. Apart from that, we have also explained about the eligibility and documentation criteria to apply for a Finance for automobile businesses. Finally, we have also listed our best features to contact us for a loan.

Why Automobile Business

According to the data presented by Invest India a Government establishment you can find the facts about automobile business below.

By and large India’s automotive sectors grow at CAGR of 15 % and will become 3rd largest in terms of volume by 2026. By 2020 the automotive industry is expected to touch 135 Billion and go up to 300 Billion before we cross 2026.

The main automotive population division can be classified as market share in 2017-2018 as follows:

  • The 2 wheeler sector is about: 81%
  • The four-wheeler and commuter vehicles: 13%
  • The auto-rickshaw and  Three-Wheeler: 3%
  • The trucks, buses and other commercial vehicles: 3%

The automotive exports are the largest after the IT and software sector and India exports these vehicles to South East Asia (SEA), Middle East, and North African (MENA) countries. The exports are contributed mainly by 4 hubs or 4 regions in India. They are Bengaluru-Chennai-Hosur in the South, Pune-Mumbai-Aurangabad-Nashik in the West, Faridabad-Delhi-Gurgaon in the North and Kolkata-Jamshedpur in the East.

The vehicle exports increased by 16.12% in the financial year April 2017 – March 2018. In the same year, the 2 Wheeler growths were 20.29% and the 3 Wheeler growths were at 40.13%.

As the major contributor to India’s GDP the share for the vehicle industry is 7.5%.

Important Tips to Start Business in Automobile Sector

  • Make innovative and creative products suiting to the new designs required for the futuristic vehicles
  • Plan for skilled and unskilled resources required for the automobile business
  • Have networking skills and make contacts to make your business known to the large automotive industry people
  • Know your customers and what they require from you
  • Help the customers and millions of people by adding value to your products.
  • Ensure you understand what customer wants and expects from your product and congeal on the design and the product of the customer’s choice.
  • First, build a prototype of the design and then get acceptance from the customer. Use your ideas to outsource which is not core business for you. Then make different tools and dyes for your products. For painting, bending, rolling, fabrication and raw materials, etc identify your partners in your business.

For example, you can start making automobile parts and auto components manufacturing business which generates very high profits.

If you are near to the automobiles assembly units or hubs you can start the auto components industry and even small assembly units for the large automobile manufacturers. There are both engineering and non-engineering businesses that you can start immediately if you have some knowledge related to the automobile industries.

Explore the business and do thorough research on the products you want to make. You need not make a lot of products; however, you can specialize in a few products which are required on a continuous basis. The investment for such a business is low and between 5 Lac to 15 Lac.

Likewise, there are several thoughts you can come up with or search online to find ideas for automobile businesses. Irrespective of your plan we can assure you that we can provide you a business loan up to one crore to make you an entrepreneur.

The automotive industry is large and vast all over the world. The automobile care industry will flourish in the years to come and will be larger than the growth rate of the economy. The industries survey suggests that there is a prospect for further growth in the future.

The appropriate conditions required for a business loan

Before applying for business loans you need to understand the appropriate conditions needed for the loans and how to apply for the loans. These conditions are as per the Indian constitution. Once you understand these criteria you are ready for the loans.

  • You must be between 21 years and 65 years for applying for business loans.
  • Your plan must make at least 2 Lac rupees per year returns
  • You must have a breakeven and then made a profit the previous year for applying for the business loans.

There are certain documents required for the business loans and they are as follows:

  • A tax return filed for at least previous 2 years
  • Any government authorized address proof
  • Any government identity proof
  • Bank statement for a minimum of 6 months
  • Credit details and your debt obligation details if any
  • Net revenue generated and profit statements
  • PAN Card
  • Recent passport size photograph
  • Registration of Shop and GST

The EMI and the charges on the business loans are as per the following factors:

The charges and the rate of interest are based on case to case basis and the criteria are mentioned below.

  • Cash flow on an annual basis
  • CIBIL Score of the owner
  • Commitment and EMI prepayment rates
  • Foreclosure charges if applicable
  • Inventory and the ratio of the assets and liabilities
  • Sum required and duration for the repayment
  • The net worth of your business
  • Working capital required every month

FlexiLoans has the following attractive features in offering business loan

  • We offer business loans services in more than one hundred cities in India. You can choose the nearest city close to your establishments. For your reference, states including Gujarat, MP, AP, Karnataka, TN, UP, Haryana, Rajasthan and Maharashtra have an enormous opportunity for automobile businesses.  
  • Ours is an online process and we adopt a Go Green and paperless process. You need to fill the online form on our website and upload the necessary documents.
  • We process your application within 48 hours of document submissions.
  • There are no securities or collaterals required. Our processes are transparent, simple and there are no hidden clauses.
  • We charge a very nominal processing fee and you can calculate the EMI using our calculator. It is that simple and clear-cut. Do not be perplexed by the amount you need to repay.
  • Discuss with us your plan and we will guide you step-by-step to offer you the business loans and we offer loans up to 1 crore.

We want to make your business a grand success and we have very customer oriented features for issuing you the business loans.

Click here and apply for a business loan today.