Many people look out for loans for buying vehicles for their commercial use. Buying a solo or fleet of vehicles for a new start venture up may prove to be quite expensive, and in these circumstances opting for a commercial vehicle loan is the best solution. Borrowing a loan as finance for commercial vehicles is better than regular loans, as it ensures that you get the best benefits. Many reputed banks and often Non-Banking Financial Companies also provide these types of vehicle loans at attractive interest rates.
What Is A Commercial Vehicle Loan?
Finance for commercial vehicles is offered to the borrower of all kinds for vehicles for business. These loans are mostly availed by those who are into the transportation, logistics, fleet management, and other such business. You may buy buses, trucks, and light commercial vehicles using this loan and repay the borrowed money in equated installments. The loan application process is quick and simple and is available at affordable interest rates.
Let us take a quick look at different kinds of loans that are available in finance for commercial vehicles as these types of loans can be taken for buying different kinds of commercial vehicles that are used for different purposes at various places. These loans come in three different categories depending on the kind of vehicle the loan is being taken for.
- New commercial vehicle loan is sanctioned to buy new commercial vehicles for business. A person can avail of 100% funding on the chassis value of the vehicle. Additional funding for the body construction of the vehicles is also disbursed depending on the repaying capacity of the borrower.
- Old commercial vehicle loans are loans given to buy pre-owned or used commercial vehicles up to 15 years old. A borrower may get up to 90% of funding on the used vehicle’s value or the depreciation grid value.
- Commercial vehicle refinancing is finance for commercial vehicles that are disbursed as a top-up loan or where the borrower can borrow additional amounts of loans over an already existing loan and leisurely repay them depending on his eligibility and other factors.
You would be able to get finance for commercial vehicles at lower interest rates if your profile matches the criteria that are set out by the lender and the best thing is that the documentation and approval are easy and quick. The renowned banks provide loans at affordable interest rates and also assign a relationship manager who will take care of all the related issues. Once you submit the documents your loan will be disbursed within seven days.
What Benefits You Will Get
Finance for commercial vehicles is the best option for those who intend to buy their first vehicle or a vehicle to their existing fleet since they come with a lot of benefits. Check on the benefits below:
- Usually, a person taking a loan gets repayment tenure of five years and thus they get a low EMI amount which they can easily pay off.
- An individual borrower and a fleet owner both get finance for a variety of vehicles starting from light vehicles to heavy goods vehicles like trucks, buses, and trailers.
- The entire process beginning with an application to disbursement is done in a systematic and easy manner and takes a maximum span of seven days.
- The documentation process is usually a cause of apprehension, but the documentation process for commercial vehicle loans is hassle-free and quick, and supporting documents for loans can be uploaded online.
- There is no compulsion to have a high credit score. You can apply for a commercial vehicle loans even if you have a zero or low credit score.
- Loans for commercial vehicles meet the diverse requirements of borrowers. One can avail loans for new as well as a used vehicle, top-up on the existing loans, as well as refinancing.
- Every loan scheme is customized depending on the vehicle type, financial ability of the individual borrower, and other specific requirements.
If you are planning to start an entrepreneurship, a transportation business, or increase your existing number of fleets, it is best to go for a commercial vehicle loan. Easy documentation, processing, and quick disbursement along with small EMI make this the best loan to avail of.