Tata Motors extends financial support to truck drivers: Low EMIs, loan restructuring and more

These funding initiatives by Tata Motors as well as Tata Motors Finance will immensely help fleet owners with their cash flow as well as purchasing new vehicles.

Tata Motors extends financial support to truck drivers: Low EMIs, loan restructuring and more

Tata Motors has been working closely with truck drivers and transporters ever since the COVID-19 pandemic-induced lockdown started in India. The truck drivers were given monetary support as well as day-to-day rations for use. In between, the company also extended warranties and service support of eligible trucks as well. Tata Motors has now taken another step, one of giving financial aid to fleet owners. As said by the RBI, Tata Motors has extended the moratorium on EMI payment to all its corporate as well as retail customers. Tata Motors Finance, a subsidiary of the Tata Motors Group, has also brought in several schemes to help its customers. These include opex funding, loan restructuring, bill discounts, working capital, low EMIs for new vehicles and more. Such customised finance options, Tata Motors hopes, will allow the fleet operators to have essential cash flow and help them in their business.

If a customer opts for opex funding, Tata Motors will take care of fixed expenses for the next quarter. Suppliers as well as dealer claim financing will also be handled by Tata Motors. Given that income levels of many MSMEs have dropped in the last 3-4 months, a restructuring of their loans will be done. This will allow them to pay lower EMIs till the time their business as well as incomes go back to normal in the next six to nine months. As for working capital solutions for customers, a vehicle which is loan-free will be kept as collateral with TMF for funding. Payment cycle increase will also be taken care from an average of 45 days pre-COVID to 90 days going ahead.

Credit solutions will help customers get plying time support. If a customer were to buy a new truck, there will be lower EMIs. This will be prevalent only for the first 12 months. Based on requisite collateral, new vehicle loans will be bundled with working capital ones. Through this method, fleet owners can navigate through the first couple of months of business.

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First published on: 17-06-2020 at 18:29 IST