Poonawalla Fincorp Ltd, the non-banking financial company (NBFC) of the Cyrus Poonawalla Group, has launched a new commercial vehicle (CV) loan business targeting India’s Tier-2 and Tier-3 markets. The initiative aims to provide financing solutions for both new and used commercial vehicles, catering to small, light, and heavy transport operators. Initially, the service will cover 68 locations across 12 states, with plans to expand to 400 locations in 20 states in the coming months.
This move is designed to support the growing logistics and transportation sectors by offering flexible financing solutions. Customers will benefit from structured payment plans, minimal documentation, and streamlined processes to ease access to credit. The goal is to empower small fleet owners and transporters who drive India’s economic growth but often struggle with financing options.
Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, emphasized the importance of commercial transport in strengthening the economy. He noted that the new CV loan offering directly addresses the financial needs of transporters while expanding the company’s secured lending portfolio. The firm has also integrated a tech-driven, risk-first approach to enhance the loan approval process, ensuring efficiency and customer satisfaction.
The launch of CV loans aligns with a broader trend among NBFCs to diversify their offerings and tap into underserved markets. With rising infrastructure development and increasing economic activity in smaller cities, demand for commercial vehicle financing is expected to grow significantly. By targeting Tier-2 and Tier-3 markets, Poonawalla Fincorp aims to fill this gap and become a key player in the sector.
The company plans to implement a phased rollout using a hub-and-spoke model, allowing for efficient resource allocation and seamless customer service. This approach ensures that expansion is managed strategically, balancing growth with operational stability.
With this expansion, Poonawalla Fincorp is positioning itself as a major player in India’s financial services market, focusing on tailored credit solutions that empower businesses and contribute to economic progress. As the company scales its operations, its role in financing India’s commercial vehicle sector is expected to become increasingly significant.
