With the cost of fuel increasing every year, most people look for effective ways to reduce their burden of fuel expenses. Many top NBFCs have come up with unique finance solutions to help people ensure hassle-free and smooth fleet operations. The article talks about everything you need to know about fuel loan or financing.
Nowadays, a major concern for fleet managers and drivers is the rising cost of petrol and diesel. However, many credit card companies and NBFCs offer ease of fuel financing in association with leading oil companies. They provide fuel credit cards to help customers make cashless purchases of diesel and lubricant. Usually, fuel cards are rewarding and beneficial for business owners or fleet managers whose daily or monthly fuel expenses are high. Fuel credit cards are an ideal solution to ease the load of high fuel charges. These fuel credit cards can be used while refueling the vehicle tank at partner outlets across the country. The users get many rewards and benefits on every fuel purchase made through these cards. Also, these specific credit cards are highly beneficial for those who travel frequently in their vehicles. Here is more about the fuel loan and how it can help you save costs.
Eligibility Criteria
The eligibility criteria for fuel loans are:
- S/He must be an Indian resident
- S/He must have 6-months of work experience or business stability
- Track record or proof of repayment of commercial vehicles for at least 1-year
- Must have purchased at least two commercial vehicles for a minimum of 6 months
Who Can Apply for Fuel Credit Cards?
- Small, medium, and large-sized fleet owners
- First-time buyers
- Proprietorship firms
- Individual buyers
- Partnership firms
- Schools and educational institutes
- Trusts
- Private and public limited companies
Documents Required for Application
- Income proof
- Copy of RC and other vehicle-related documents
- KYC Documents like ID and signature verification
- Additional documents, depending on the customer profiles
Features of Fuel Credit Cards
- Upto 45 days of the credit period
- Quick processing for credit approval
- Thoroughly digital procedure, from application to disbursal of the card and its usage
Benefits of Fuel Credit Cards
Easy and Secure Transactions
With fuel credit cards, you do not have to carry cash for purchasing petrol or diesel or give cash to your drivers for every trip. The card will ensure easy and secure financial transactions.
Cashback
One of the biggest benefits of fuel credit cards is the cashback they provide every time a purchase is made at different fuel stations. However, fuel needs to be purchased from any HPCL and IOCL outlet in the country.
Savings on Fuel Costs
Many banks and NBFCs also provide a fuel surcharge waiver at certain partner outlets, ensuring consistent savings on fuel. A surcharge forms a major part of fuel costs. So, it will be highly beneficial even in case of a small percentage is offered.
How to Apply for a Fuel Loan?
- Check costs like annual card charges, service fees, processing fees, etc.
- Check the terms and conditions of the redemption process
- Consider the list of petrol pumps
- Compare charges offered by diverse banks and NBFCs
- Look for a card that has a low-interest rate and an easy payment pattern
So, fuel loans or credit cards are helpful for customers in the current scenario when fuel costs are increasing at a fast pace. However, consumers must apply for fuel credit card from a reliable financial institution.