Commercial vehicles are a specific class of motor vehicles used for carrying passengers or transporting goods for business purposes. A commercial vehicle loan is intended to provide funds to borrowers to buy a vehicle to fulfil their commercial needs. It is like a car loan. However, a car loan is given towards a private vehicle, whereas a commercial vehicle loan provides funds for buying commercial vehicles. Getting a loan to buy a commercial vehicle for your business is quite easy, as many financial institutions have eased their terms and conditions. Many banks and non-banking finance companies (NBFCs) in India are providing the best commercial vehicle loan at affordable rates. These loans are provided to entrepreneurs, trusts, farmers, individual buyers, educational institutes, private and public limited companies, etc., to buy a small or heavy vehicle for their business uses.
Commercial vehicle loans are provided for different categories of commercial vehicles, including:
New commercial vehicle loan
This loan is available for an individual or a firm looking for funds to purchase new commercial vehicle(s). Most banks provide up to 100 percent funding on the chassis or base frame cost of the vehicle.
Used commercial vehicle loan
This loan is provided to borrowers to buy all makes and models of pre-owned commercial vehicles. In this loan type, borrowers can get financial aid against used vehicles up to 15 years old. Many banks and NBFCs provide up to 90% funding on the second-hand vehicle’s value or depreciation value.
A commercial vehicle loan proves to be the best option for borrowers. Whether you are planning to buy your first commercial vehicle or looking forward to adding a new vehicle to an existing fleet of commercial vehicles, these loans come with many features and benefits.
Here are some key benefits of a commercial vehicle loan in India.
Flexible Repayment Tenure
Most banks and NBFCs provide commercial vehicle loans with an easy repayment tenure ranging up to 5 years. The extended repayment time ensures a low amount liability every month to borrowers, making it easier for them to repay the equated monthly installments without any financial burden. You can get the loan with easy EMI monthly, quarterly, or yearly, as per your needs and financial plan.
Quick Processing Time
The process of applying for this loan is quick and hassle-free, with easy documentation and approval. When you apply for a commercial vehicle loan online, you can easily upload the required documents without visiting the branch. The key documents you should keep ready are the application form, KYC documents, signature verification proof, photograph, etc. Once you submit these documents, the best NBFCs will take no time to process a commercial vehicle loan application after verification.
Get Customised Solutions
To ease the process and make it more customer-centric, the loan plan is designed to cater to borrowers’ different requirements, such as new and second-hand vehicle financing, top-up on existing loans, and financing for the entire range of vehicles. Banks offer customised financing solutions to help borrowers meet their requirements related to a used and a new commercial vehicle. To meet the specific requirements of the customers, each loan scheme in the commercial vehicle loan segment is customised as per the loan duration, vehicle type, and financial status of the borrower.
No Credit Score Compulsion
While other types of loans require a good credit score and history, commercial vehicle loans do not come with such conditions. The applicant with low and even zero credit scores and poor history can apply for the loan. Most banks and NBFCs provide commercial vehicle loans without asking for collateral or security, as the vehicle itself is considered the security for the loan amount.
Choose From the Range of Commercial Vehicles
There are a variety of vehicles available in the commercial segment, and the best lenders provide vehicle loan on full range of commercial vehicles. Whether you are a fleet owner or an individual borrower, you will get financing options for diverse vehicles, such as buses, passenger cars, trucks, tankers, and other light and heavy-duty commercial vehicles, to grow your business. You only have to match the eligibility criteria or required parameters to apply for a loan for any vehicle you need for business. In addition, banks also offer assistance in purchasing a commercial vehicle.
Make Better Savings
When you take up a vehicle loan, you are pledged towards a monthly EMI. It not only eases up the repayment but also makes your budgeting and finance forecasting better. It will also prevent you to overspend or make unnecessary expenses on the business front which culminates to better finances and savings.
Refinancing on a Commercial Vehicle
Another beneficial aspect of commercial loan is refinancing. If you own a commercial vehicle with no existing loan on it, you may apply for a vehicle loan to support your finances. Many renowned banks and NBFCs also offer refinance by taking over an ongoing loan and provide additional funds at better rate of interest.
So, these are some key benefits of commercial vehicle loans. Many leading banks and financial institutions provide commercial vehicle loans at the best interest rates, helping you plan and repay EMIs. It is wise to start the loan process as soon as you plan to purchase a commercial vehicle to avoid the processing delay.
