Karvy Finance enters CV finance space

Non-banking lender Karvy Finance has entered the commercial vehicle financing with a targeted offering for funding small CV purchases, even as a majority of lenders struggle in this space with their loan books.

The city-based lender will lend up to Rs 10 lakh for a tenure of one to five years to assist the purchase of small CVs, it said in a release.

The vehicles can be used by traders for captive use as well as by transporters looking to expand their fleet, it said.

It will also lend to first-time users, who are qualified drivers and are yearning to start out on their own.

The company said that loans will be processed faster and disbursements will be done in three days after submission of the necessary documents, which also will be minimum.

It can be noted that a majority of lenders are struggling on the commercial vehicle financing side as the sector has been impacted due to the lingering economic woes. Some of them are public with their cautious stance on the segment.