Starting from private vehicles to commercial vehicle each has its contribution in improving the standard of life. Commercial loan is given to self-employed, trust, organisation etc. taking loan for small to heavy vehicle for commercial or business purposes. Precisely talking about commercial vehicle, it costs a huge compared to other vehicle. Hence, various financial institutions and bank has come up with very affordable loan for every section of the Indian society. But before you procure your commercial vehicle loan you must consider some vital points to crack the best deal.
Getting a loan for your commercial vehicle is very easy as various financial organization has ease their terms and condition. If you meet the required parameter then you can choose from the multiple options available in the market. After paying the required down payment you can have your vehicle with minimum paperwork. Most of the prominent banks in India offer commercial vehicle loan with a hassle free process and additional benefits. You can get the loan on easy EMI that can be monthly, quarterly or yearly.
► You can get a commercial vehicle loan at a low interest if your profile matches with the criteria put forwarded by the lenders. ► The processing time of a commercial vehicle loan is fast with easy documentation and approval. ► Most of the prominent banks in India provide commercial vehicle loan at an affordable rate of interest without any security. ► Some of the banks assign a personal relationship manager from starting till procurement of the vehicle. He/she will do all documentation and address every issue related to the loan. ► Once all required documents are submitted, it takes around 7 days for the disbursal of the loan amount.
Commercial loans can be availed for a variety of commercial vehicles which are used at different places to serve various purposes. Based on the type of vehicles these loans are sought for, commercial vehicle finance is differentiated in three broad categories namely:
This type of commercial vehicle loan is provided to the customers for the purchase of new commercial vehicles for business purpose. Banks offer up to 100% funding on the chassis or base frame value of the vehicle. Some of the banks provide additional funding for the body construction of the vehicles in selective cases based on the borrower’s profile.
Old or used commercial vehicle loan are those loans which are offered to purchase all makes of pre-owned or used commercial vehicles. Under this loan, borrowers can expect to get finance against old vehicles which are up to 15 years old. Most of the banks provide up to 90% funding on the used vehicle’s value or depreciation grid value.
Under commercial vehicle refinancing, banks either offer loan on an existing vehicle which is free of loan or take over an existing commercial vehicle loan and provide additional finance for it based on eligibility. While some borrowers can reduce the monthly EMIs of their existing loan and free up some cash by refinancing an existing loan at lower interest rates, some others can get direct finance on their free vehicles to meet the working capital needs.
Banks and other lenders offer commercial car loan to a broad array of customers to meet their business needs. In other words, this type of vehicle loan can be availed by various segments of customers having diverse profiles. Here is the list of the consumers considered to be eligible for this loan:
► Individuals ► First-time users and buyers ► Small, medium and large-sized fleet owners ► Proprietorship firms and Partnership firms ► Public Limited & Private Limited Companies ► Trusts and societies ► Schools and colleges ► Captive customers and transporters
Salaried and self-employed individuals can co-apply for a commercial vehicle loan with blood relatives or family members. On the other hand, the partners in partnership firms and the directors in private limited companies can jointly apply for this loan.
Commercial vehicle loan stands out to be the most preferred option for borrowers who are either intending to buy their first commercial vehicle or planning to add a new vehicle to their existing fleet of commercial cars due to the plethora of benefits that it offers. Some of the outstanding benefits of this loan are as follows:
Flexible repayment tenure- Usually, the repayment tenure offered in commercial car loan is up to 5 years. This ensures low EMI amount to the borrowers enabling them to pay off the EMIs without any undue financial burden. Multiple vehicle financing- Whether you are an individual borrower or a fleet owner, you can get finance for a variety of vehicles such as tippers, trucks, buses, trailers, tankers, and other small and light commercial vehicles to grow your business. Easy processing- The process of applying for a commercial vehicle loan is easy, fast and convenient. After the submission of all the required documents, banks usually take 4-5 days to process a new or used vehicle loan application. Simple documentation- Commercial vehicle loans come with a hassle-free and quick documentation process. The users can easily upload all the mandated documents online without visiting the bank directly. No credit-score compulsion- Unlikely other loans, commercial vehicle loans don’t require any existing credit score. Borrowers having low or even zero credit score can avail a commercial vehicle loan with ease. Caters to multiple needs: The loan schemes are designed to cater to the borrowers’ diverse requirements including new and used vehicle financing, top up on existing loan and refinancing of loans/vehicles for working capital. Customised solutions: In order to meet the specific requirements of the customers, every commercial vehicle loan scheme is customised according to the vehicle type, loan duration and financial ability of each individual borrower.