Purchase a loading vehicle to start your transportation business. Or, add more delivery trucks to your fleet with a commercial vehicle loan. Secure a commercial loan for your vehicle choice and set up or expand your operations to increase revenue.
Commercial vehicle loan – A tailored loan for businesses and individuals!
The documents you require while applying for a commercial vehicle loan are minimal. Check your eligibility requirements and monthly EMIs for the loan using a commercial vehicle loan calculator. Apply for a commercial vehicle loan in no time! Can it get any better than this?
Purpose of a Commercial Vehicle Loan
A commercial vehicle loan is used to acquire a vehicle for business or commercial purposes. Many top lending agencies in India, including Axis Bank, State Bank of India, IndusInd Bank, etc., offer these loans.
The interest rate of these banks is affordable and competitive. The entire process of applying for a Personal loan is quick and stress-free. Moreover, it requires minimal documentation.
Experience a seamless, hassle-free documentation process, fast processing, and rapid loan disbursal!
Types of Commercial Vehicle Loans
You (as a transport business owner) can use a commercial vehicle loan for various commercial vehicles. These automotive machines are used at various places to serve different purposes. Based on the vehicle type this loan is taken, the finance for a commercial vehicle can be categorized into these types, including:
1. New Commercial Vehicle Loan
This loan is provided to customers for new commercial vehicle purchases for business purposes. Trucks, tankers, etc., can be bought using this commercial vehicle loan.
2. Used Commercial Vehicle Loan
This loan is provided to customers for pre-owned or used commercial vehicles. Many lending agencies provide up to 90% funding of the used vehicle value.
3. Balance Transfer
Changing the bank or lending agency of the current commercial loan is called ‘Balance Transfer.’ Besides a quick loan process, the interest rates may be lower than your previous loan.
4. Top-Up Loan
If you have taken a commercial vehicle loan and would like another loan, it is called a ‘top-up loan.’
Benefits of a Commercial Vehicle Loan
Apply for a commercial vehicle loan online and get the best offer based on your financial profile.
- New Commercial Vehicle Loan for Different Vehicles
A commercial vehicle loan can be used for various vehicles, including buses, cargo vans, trucks, and light and commercial vehicles. Our commercial finance is offered for new transport units.
2. Flexible Tenure Up to 60 Months
Enjoy a flexible tenure of up to 5 years based on your eligibility and financial profile.
3.Top Up on Existing Commercial Vehicle Loans
Obtain the most competitive commercial vehicle loan interest rates by choosing a top-up on your existing vehicle loan.
4.Multiple Vehicle Financing
No matter whether you are an individual borrower or a fleet owner, you can get financial support for various vehicles. These include buses, trucks, tankers, trailers, and other small and light commercial vehicles.
5. Bespoke Financial Solutions for Individual Requirements
We understand your requirements and offer a bespoke solution to provide unparalleled financial assistance. When you apply for our commercial vehicle loan, our competent representatives offer you a practical solution.
6. Simple Documentation and Easy Processing
With our commercial auto financing application process, expect minimal and fast documentation. Applying for a commercial vehicle loan online will work to your advantage. Not only is the entire process paperless, but you just need to upload the documents to get started.
7. Support for Vehicle Purchase
Our customer service representatives are glad to assist you in purchasing a commercial vehicle.
How to Apply for a Commercial Vehicle Loan?
Applying for a commercial vehicle loan has become comparatively easier, and it is no different from applying for other types of loans from a bank or lending agency.
Below mentioned are the steps you must follow when applying for a commercial vehicle loan:
- Check Eligibility Requirements to Meet
Check the eligibility requirements set by the bank, lending agency, or financial institution. Ensure you meet the requirements to apply for a commercial vehicle loan. These eligibility requirements can be found on the lending agency’s official website.
- Fill Out the Application Form
Have you met the eligibility criteria? The next step is to fill out the loan application form. Download the form from the bank’s website if you are applying online. Ensure you fill out the form correctly and provide all the necessary information. You might also have to fill in the details concerning the commercial vehicle you want to purchase.
- Submit Documents
You must submit the documents listed by the bank or lending agency. Ensure all of the documents you submit are genuine and up to date.
- Approval Process
Submitted the application form and documents? Now, you must wait for the loan approval process to be completed. During this stage, the bank or lending agency will review your commercial vehicle loan application and documents to determine whether or not to approve your application for a commercial vehicle loan. Moreover, they will Improve your CIBIL score, repayment history, etc.
- Fund Disbursal
If the bank or lending agency decides to grant you the loan, the funds will be disbursed to your linked bank account. In an ideal situation, you must opt for a bank or lending agency offering a quick timeframe concerning the processing and disbursal stages. This way, you don’t need to wait an extended period to hear about your loan application status.
Eligibility Criteria for a Commercial Vehicle Loan
- More than 2 years of employment stability for salaried borrowers and at least 2 years of business experience for self-employed individuals.
- A minimum 2-year existence for private/limited companies, partnership organizations, associations, societies, and trusts.
- Proof of 1 to 3 years of vehicle ownership of one or two commercial vehicles for fleet operators and other existing vehicle owners.
- Minimum 2-year residential stability for the customers.
- 2 years of audited financials to be provided by private/limited companies, partnership firms, societies, and trusts.
- For first-time buyers and fleet operators/owners, an internal/external guarantor is needed for individuals.
Tips to Increase Loan Approval Chances
Maintain a good credit score – A higher score improves approval chances.
Show stable business income – Lenders prefer applicants with steady revenue.
Opt for a shorter loan tenure – Reduces lender risk and increases approval chances.
Choose a reputed lender –Trusted banks and NBFCs offer better loan terms
Documents Required for a Commercial Vehicle Loan
- Address Proof: Aadhaar Card, Driving License, Passport, or Voter ID, whichever consists of the applicant’s address.
- Identity Proof: Aadhaar Card, PAN Card, Passport, Driving License, or Voter ID.
- Income Proof: Documents reflecting the applicant’s salary to repay the loan, such as salary slips for the last 3 months (for salaried individuals), bank statements for the previous 6 months, and ITR for the past 3 years.
- For Entities Other than Individuals: If the loan applicant is not an individual, they must submit the KYC (Know Your Customer) documents for the legal entity and ITR for the last 3 years.
- Online: Fill out the application form for a commercial vehicle loan. Upload the required documents online.
Final Thoughts
Securing a commercial vehicle loan can enhance logistical and operational capabilities. Look for quick, stress-free, bespoke financial solutions to help you meet your commercial vehicle needs. A loan for a commercial vehicle purchase is equipped with competitive interest rates and is swift to process.
Disclaimers
All the information has been mentioned as per the general notions as per the scenario going on in the digital lending industry. However, at every step of the personal loan, the terms and conditions pertaining to the eligibility criteria, documents, approval timing, and document requirements finally depend on the lender’s policies. Therefore, in case of the demand for any other documents and overall time consumption for the disbursal, can vary on the lenders. In those cases, the lender’s decision will be final where you must go through the terms and conditions before loan applications.
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