How does the loan application process differ for individual taxi drivers?

Applying for a taxi loan is different from a regular car loan. Taxi drivers must show they earn a steady income from driving a taxi. They may have to provide taxi receipts, driver logs, or contracts. This shows the bank or Non-banking Financial Company (NBFC) that the driver makes enough money to repay the loan.

• Taxi drivers need a business loan or commercial vehicle loan, which is different from a personal car loan. The driver may have to provide business registration papers or their taxi license. This is because a taxi is used for business, not just for personal use.
• A taxi driver's credit score is checked but may not be the main factor. If a driver has experience operating a taxi service, the loan provider can be more flexible. A high credit score still helps get better loan terms, though.
• The down payment and loan amount depends on the driver's situation. Some lenders allow smaller down payments for experienced taxi drivers. The loan amount is tied to the taxi's cost, which is higher since it's a commercial vehicle.
• The taxi itself usually serves as collateral for the loan. This means the financial institution can take the taxi if the driver defaults. Insurance and registration documents are also used to secure the loan.