How to Earn From Your Vehicle? 6 Ways to Build Income From Your Vehicle
Owning a vehicle nowadays is becoming an asset to earn more income. As the popularity of gig work and flexible entrepreneurship increases, people are turning to towards buying income generating assets most popularly vehicle.. In India, people are taking advantage of this opportunity to start as cab and delivery drivers as a supplementary income.
Are you wondering how to earn from your vehicle? Scroll below to learn how a vehicle loan can generate attractive revenues and bring financial stability.
How to Earn From Your Vehicle: A Guide to Income Through Commercial Vehicle
Let us explore the various ways a vehicle loan enables you to earn profit:
● Cab Services
Getting a vehicle loan specifically used vehicle loan for cab services is becoming common nowadays. Ride-sharing apps dominate the market and provide an excellent opportunity to earn money using your vehicle. If you have a good driving record and have spare time on your hands, this is an excellent option. Weekends and rush hours are the best times, as the prices inflate due to high demand.
● Delivery Services
The food delivery industry is booming in India, with various startups offering grocery and food deliveries. In addition, courier and other deliveries (offering same day delivery) have become popular. It opens up a whole new sector for income generation. According to Glassdoor, you can earn approximately ₹28000 if you opt for a full-time role. However, part-time options are also available if you want them as an extra income.
● Leasing and Renting out Your Vehicle
If you do not have the time for a side hustle, you can still generate income from your vehicle. Leasing out or renting is becoming increasingly popular in India. Renting it can be an excellent way to earn money through your unused assets. Various startups are tapping the vehicle rental market and offering opportunities.
● Advertisements
Several companies are willing to pay to advertise on your vehicle. You can sign up with an advertising agency. They will wrap your vehicle with promotional material, helping you earn an additional income.
The amount you earn depends on your daily commute and your vehicle. Through this, you will be earning money while you are on your regular drives.
● Transportation and Logistics
This substantially large and rapidly growing industry can provide an ample source of income. You can use your vehicle in the warehouse and distribution segment, as it is the fastest-growing segment within the industry.
● Courier Services
You can even use your vehicle for courier services. The courier market is on the rise with the launch of many startups. You can enrol in those apps and start earning money on your schedule. You can even choose between intercity and staying in your locality, giving you freedom and flexibility.
Popular Vehicle Loan Schemes in India
After understanding how to earn from your vehicle, let us look at some government schemes that facilitate self-employment with a vehicle loan.
- There are some good taxi loan schemes in India. For instance, the Karnataka Subsidy Scheme for Purchase of Taxi provides a subsidy of 33% of the value of the vehicle or a maximum subsidy of ₹2.5 Lakhs.
- FAME – II (Faster Adoption and Maintenance of (Hybrid) and Electric Vehicles scheme allows for subsidies for electric vehicles.
- The Electric Mobility Promotion Scheme (EMPS) is another scheme which aims to boost the adoption of electric two- and three-wheelers for commercial use, facilitating income through commercial vehicles.
- Kogta Financial has an extensive commercial vehicle financing scheme in place. These schemes help you secure a vehicle loan, making it easier to start your business.
Vehicle Loans: 5 Benefits Nobody is Talking About
You may wonder what benefits you will receive from commercial vehicle financing. Here they are:
- Income-Generating Asset: The purchased vehicle becomes your income-generating asset from day one.
- Small Initial Investment: Since you are securing a loan for your vehicle, there is no need for a heavy initial investment on your side.
- Improved Credit Score: If you pay your EMIs on time, you can easily improve your credit score.
- Tax Benefits: You can claim tax benefits under some self-employment clauses.
- Insurance: You will also have easy access to insurance with accidental and theft coverage.
Things to Know Before You Start Earning With Your Vehicle
Before applying for a vehicle loan for income generation, you must keep certain factors in mind. They are as follows:
● Rate of Interest
Interest on a vehicle loan (Used Vehicle) varies from 14% to 24%.. Factors like your credit score, income, tenure, and vehicle model determine the interest rate for the loan. Go through various options and compare interest rates before choosing one.
● Check Your Credit Score
It is essential to check your credit score before you apply for a loan. If you have a high credit score, you are more likely to get a lower interest rate. However, if you have a poor credit score, the chances of your loan application getting rejected become high. Therefore, ensure you have a standard credit score to avoid unnecessarily high rates and make the best out of the vehicle loan.
● Tenure of the Loan
A longer loan tenure may appear convenient as you need to pay less EMI. However, interest rates are higher in such cases. If you are comfortable paying higher EMIs, you should settle the loan promptly. However, do not take on EMIs you cannot afford. Assess your financial situation and choose accordingly.
● Evaluate the Charges Relating to a Vehicle Loan
A vehicle loan can demand various charges. These include stamp duty, registration certificate, collection charges, and processing fees. Thoroughly enquire about additional charges on your loan before proceeding.
● Loan Eligibility and Down Payment
Loan eligibility and down payments vary from lender to lender. High amounts of down payment warrant lower EMI rates and vice versa. Moreover, check your loan eligibility before applying.
How to Apply for a Vehicle Loan?
Here is a step-by-step guide on how to apply for a loan easily:
- Visit the Kogta Financial Website: Search for Kogta Financial vehicle loan and open the webpage. Connect to the company’s sales executive.
- Check Your Eligibility: To apply for a vehicle loan, submit doc to the company’s executive, he/she let you know the eligibility.
- Prepare Required Documents: Gather all the necessary documents, such as photo identity proof, address proof, income proof and business proof.
- Click on Apply Now: Enter your name, email ID, phone number, and city. A representative will contact you afterwards.
Conclusion
Commercial vehicle financing opens new doors towards income generation. If you are wondering how to earn from your vehicle, you are in the right place. Secure a vehicle loan for a new or used vehicle at affordable interest rates today! Apply now at Kogta Financial!
