Commercial Loans

Commercial Vehicle Loan - Vehicle Loans in India

As we talk about vehicle purchase every one need for private use and for commercial use. Most people were unaware of the process to buy commercial vehicles. Before we start, let's discuss why and who needs a commercial vehicle. The commercial vehicle is owned by a self-employed person to increase its business productivity. Now an individual can’t afford to buy multiple vehicles for that person to take help from market lenders who provide commercial vehicle loans. Yes, you heard it right there is a loan for commercial vehicles too.

Tips for Buying Commercial Vehicle

Many Auto manufacturers sometimes attract companies or individuals looking for vehicles to use for business. Commercial auto manufacturers can offer cash discounts or lure to attract business owners. This can give you a great deal on a vehicle. If you want to buy multiple vehicles for your company, many car manufacturers offer a huge discount. If you want to buy around 5 to 10 vehicles, you may qualify for discounts. This may also provide you the prospect to configure your vehicles to your requirement as part of your overall auto purchase. There may be other financial incentives for your business if you are looking to purchase commercial vehicles, so ask around to different manufacturers before taking a commercial loan.

Checking financing status

On the time of buying a commercial vehicle, you want to make sure that you have a good interest rate for any loans you might take out on vehicle purchases. Get tax incentives probably from your state for small businesses, which could cut down on the money you end up spending on a commercial vehicle. You could also be able to deduct your loan finance charges and fuel and maintenance costs on your taxes.

The registration of your commercial vehicle may be under your business’s name, rather than your own. If you are directly financing your commercial vehicle purchase, then there are a few things that will be different than when you buy a private vehicle for yourself.

If you want vehicles for a small business, keep in mind that you are working with a bank that is used to working with business vehicle loans. Keep yourself well informed about the loan and make sure that you have the right commercial vehicle insurance that will cover your vehicles.

Choose Best Suited Vehicle

Before entering into the vehicle market, you must be aware of what kind of commercial vehicle you need. You may need a delivery truck, a panel van, or a regular pickup truck or car. Some car dealerships might not be prepared to deal with small business financing, or they may not be able to modify your vehicles in the way you need them. You can also go for used commercial vehicles that may already have been modified for business use. This could save you time and money renovating another vehicle for your business’s needs.

Commercial Vehicle Loan Eligibility

This type of vehicle loan can be availed by various divisions of customers having multiple profiles. Here is the list of the buyers considered to be eligible for this loan:

Single person
First-time users and buyers
Small, medium and large-sized business owners
Partnership firms
Public Limited & Private Limited Companies
Trusts and societies
Schools and colleges
Captive customers and transporters

Documents Required for Commercial Vehicle Loan

Id Proof
- Aadhaar Card
- Voter's ID card
- Driving License
- Passport
Address proof
- Rental agreement
- Electricity Bill
- Trade License
- Sales Tax Certificate
Income proof
- Last 3 months Salary Slips
- Latest 6 months bank statement
- Updated ITR for last 2 years
- Photocopy of official ID
Other Documents
- Existing vehicle ownership proof
- Vehicle details & valuation report
- Insurance and RC copy of the vehicle
- Fleet list details
- Trade references Property ownership proof (In case of farmers)
- Proprietorship decl., partnership deed, (MOA/AOA), board resolution & 2 years audited financials (In case of Private/Limited companies, partnership firms, trusts & societies)
- Loan repayment track

Commercial Vehicle Loan Interest Rates

Note the rate of interest may vary from customer profile, tenure of the loan.

BANKS	Interest Rates
Axis Bank	12%
HDFC Bank	8.70% to 21.25%
ICICI Bank	24%
Kotak Mahindra Bank	10.25% to 15%

How to Apply for a Commercial Vehicle loan?

Visit Dealership office near you or apply online
After visiting there fill the application for a commercial vehicle loan
After that read all financing-related documents carefully
Attach all required documents with an application form
Now submit the application form to the dealers
Sooner you will get the reply i.e. you are eligible or not for the loan
If your application form gets accepted you will get the loan in no time.
If your form is rejected then they provide a proper answer for that.

Note: Check EMI of Commercial loan by using Banksathi Commercial Loan EMI Calculator

Last Updated on : 06/Jun/2020

You're eligible for a Commercial Loans if you:

Are legally adult enough to handle it

Have still got it

Get a regular pay check

Make more than a basic buck

Your eligibility depends on:

Earn more than minimum income required

Maximum allowed Commercial Loans is Rs. 10K to Rs. 45 lakhs

EMIs of other loans loweryour eligibility

Boost your eligibility by:

Pay off your credit card bills

Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

1. Photo ID and age proof

2. Signed application form with photograph

3. Residence proof

4. Last 6 months bank statement

5. Documentation for salaried applicants:

Last 3 months salary - slips

Form 16 or Income Tax Returns

6. Documentation for self-employed applicants:

Last 3 years Income Tax Returns with computation of Income

Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account