Three-wheeler loans: cargo and passenger

The borrower

Most borrowers drive the vehicle themselves and earn in cash every day: ₹900 to ₹1,500 a day for passenger autos, more for cargo vehicles on market routes. Savings are thin, so one week off the road shows up in the next instalment.

Income checks

• Passenger: permit, the stand or route, and a reference from the auto union or stand.
• Cargo: the market or wholesaler the borrower carries for, with a phone number.

The dealer matters

First-time borrowers usually come through the dealer, who often helps with the paperwork. A dealer who logs weak files to hit volume shows up as first-EMI defaults three to six weeks later. Watch each dealer's FEMI rate monthly (KB-007). If one dealer's FEMI is more than three times the network average, audit under KB-035.

Collections

Weekly collection in cash at the stand works better than monthly NACH for some borrowers; it needs a branch-level approval and receipting on the app.