Welcome To AAYAN Business
AAYAN
AAYAN
Commercial Vehicle Loan
Commercial Vehicle Loan
Purpose of a Commercial Vehicle Loan
These car loans are availed by those who are involved in the transportation business. A commercial vehicle loan can be used to purchase buses, trucks, tippers, tankers, light and small commercial vehicles. The amount is fixed by the lenders on the basis of the customer and the segment of the vehicle. After evaluating the documents and the profile of any individual borrower, the bank/lending entity confirms the final rate of interest to be charged for that profile. The loan process generally takes between 3 to 6 days, depending on the loan amount.
Features of Commercial Vehicle Loans
Some of the main features of commercial vehicle loans are
mentioned below:
- You can get a commercial vehicle loan at a low interest rate if your profile matches with the criteria put forward 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 loans at affordable rate of interest without any security.
- Some of the banks assign a personal relationship manager from start 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.
Types of Commercial Vehicle Loans
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:
New Commercial Vehicle Loan
This type of commercial vehicle loan is provided to the customers for the purchase of new commercial vehicles for business purpose. Loans can be availed for purchase of tippers, tankers, and trucks.
Used Commercial Vehicle Loan
Old or used commercial vehicle loan are those loans which are offered to purchase all makes of pre-owned or used commercial vehicles. Most of the banks provide up to 90% funding on the used vehicle's value or depreciation grid value.
Balance Transfer
Changing the lender of the existing commercial loan is known as Balance Transfer. The process is quick and interest rates may be lower than your previous loan.
Top-Up Loan
In case you have opted for a commercial loan already and wish to avail another loan, it is known as top-up loan
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.
Who Can Avail Commercial Car Loans?
Banks and other lenders offer commercial car loans 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:- 1. Individuals
- 2. First-time users and buyers
- 3. Small, medium and large-sized fleet owners
- 4. Proprietorship firms and Partnership firms
- 5. Public Limited & Private Limited Companies
- 6. Trusts and societies
- 7. Schools and colleges
- 8. Captive customers and transporters
Benefits of a Commercial Vehicle 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 vehicles due to the plethora of benefits that it offers.
Some of the main features of commercial vehicle loans are mentioned below:
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.
Frequently asked Questions
-
Can I avail a commercial vehicle loan if I do not meet the eligibility criteria?
Yes, if you do not fulfil the eligibility criteria, you can still avail the loan by applying for the loan with a co-applicant.
-
Do I need to provide a guarantor for availing a commercial vehicle loan?
Yes, you will need a guarantor to avail a commercial vehicle loan. This criterion can, however, be waived off depending on your credit and profile strengths.
-
If I want to avail a commercial vehicle loan, who can be my co-applicants?
The co-applicants on a commercial vehicle loan could be your spouse, sibling, or your parents.
-
Can I sell the vehicle before I repay the loan?
No, you will not be able to sell the vehicle unless the entire loan amount has been repaid.
-
After I pay the last EMI, will I get the legal claim on the vehicle?
After the payment of the last EMI, the bank will cancel the lien on the commercial vehicle and issue a loan closure letter, Form 35, and a No Objection Certificate (NOC) to the RTO for removing the lien from the RC book. Then a similar NOC will be issued to the insurance firm requesting them to remove the lien from the policy.