A commercial vehicle loan is a financial product that offers individuals and businesses financial help to purchase old and new vehicles for commercial purposes. This loan is usually offered to self-employed individuals, organisations, partnerships and those involved in the transportation service. With this loan you can purchase trucks, buses, tankers, tippers, small commercial vehicles, electric vehicles, hybrid commercial vehicles, CNG vehicles, ambulances and caravan vehicles.
The commercial vehicle financing loan offers flexible loan amounts of up to 2 Crore at low interest rates with minimal to zero down payment.
The commercial vehicle loan interest rates vary depending on different lenders, the borrower’s creditworthiness and loan amount. Understanding the different rates offered by different lenders can help you choose the right loan with the best terms.
The general interest rates offered by lenders for commercial vehicle loan are:
|7.50% - 30.00% p.a.
A commercial vehicle loan is offered by many banks and NBFCs. These lenders offer businesses and individuals financial aid to purchase vehicles for commercial or business use.
Below is a list of some of these lenders along with their interest rates:
|IDFC First Bank
|6.50% - 30.00% p.a.
|5.00% - 36.00% p.a.
|6.00% - 26.00% p.a.
|State Bank of India
|8.40% p.a. onwards
|7.82% - 10.09% p.a.
|Kotak Mahindra Bank
|Up to 24.00% p.a.
|Will depend on the customer's credibility.
|9.30% - 15.55% p.a.
|10.75% - 13.15% p.a.
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Taking a commercial loan vehicle comes with a repayment structure that ensures equal monthly instalments. This allows borrowers to strategically plan their business’s monthly financial budget. Knowing the EMI for the loan before availing it will help borrowers plan their monthly targets accordingly.
Borrowers can find out their estimated EMI by using an online commercial vehicle EMI
calculator or by manually calculating using the formula: EMI=P * r * (1 + r)n(1 + r)n-1
P is the principal amount,
r is the interest rate,
n is the tenure.
|Loan Paid to Date (%)
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Documents required for business vehicle finance will differ from one lender to another. Refer to your preferred lender’s website for more accurate information. However, here are the general documents asked by lenders:
Commercial vehicle financing comes in various types to cater to the diverse needs of businesses involved in transportation, logistics, and other related industries. Let’s take a look at the various types of commercial vehicle financing options:
Business auto financing offers important features and benefits that support businesses seeking to purchase commercial vehicles. These features and benefits are highlighted below:
Borrowers can get a loan
of up to 2 Crore.
The loan is quickly
processed with the right
The commercial vehicle
loan can be secured or
Enjoy low interest rates
starting from 9.50% p.a.
Enjoy a loan tenure of up
to 84 months.
Enables businesses to own
valuable assets with resale
The government of India has played a major role in supporting businesses to purchase commercial vehicles for business use. Some of the schemes offered by the Central and State government are listed below:
A commercial loan vehicle can provide several advantages that contribute to the growth and efficiency of your business. Here is how availing a commercial vehicle loan can help boost your business:
Applying for a commercial vehicle loan involves a series of simple steps that can differ from one lender to another. Here, is a general guide on how to apply for a business vehicle finance:
Step 1: Visit the online website of your preferred bank or financial institution and go to the ‘Commercial vehicle loan’ section.
Step 2: Click on the ‘Apply Now’ button.
Step 3: Fill the online application with accurate information.
Step 4: Submit all the required documentation and submit the form.
Step 5: Once your application is approved, you will receive the loan.
Ready to take the next step? Apply for a personal loan now!
A commercial vehicle loan is a loan that can be used by individuals or businesses to purchase new or used vehicles for commercial and business use.
All vehicles that can be used for commercial purposes such as buses, trucks, tankers, autorickshaws, tippers, small commercial vehicles, electric vehicles, hybrid commercial vehicles, CNG vehicles, ambulances and caravan vehicles qualify for the loan.
Commercial vehicle loans empower businesses to expand operations, improve logistics, and boost competitiveness by acquiring essential vehicles with financial flexibility.
Yes, you can get commercial vehicle loans for the purchase of both new and used vehicles.
The typical repayment tenure for commercial loan vehicles ranges from 12 to 84 months.
Yes, commercial vehicle loans can be refinanced to secure better loan terms.
Businesses can ensure responsible use of the funds by budgeting effectively, maintaining vehicles efficiently and prioritising loan repayments.
The different types of commercial vehicle loans are new commercial vehicle loans, used commercial vehicle loans and commercial vehicle refinancing loans.
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