As we talk about vehicle purchase everyone needs 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.
A commercial loan is a loan that is extended to businesses by a financial institution. Commercial loans are generally used to purchase long term assets or help fund day-to-day operational costs. AU Small Finance Bank Commercial Loan is available to a business that is new to credit and a customer with no credit history. We have a wide network of more than 709 banking touchpoints in more than 500 cities.
1. Our loan approvals are also instant with quick disbursement.
2. We have a wide network of more than 709 banking touchpoints in more than 500 cities.
3. Flexible repayment options
4. Minimal documentation and instant approvals
5. This loan is available to a business that is new to credit and a customer with no credit history
6. It offered loan for vehicles such as SCVs, LCVs, MCVs and HCVs
7. We offer competitive interest rates tailor-made to help your business cycle
8. Instant approvals
To apply for a commercial loan, you have to pay fees and charges applied by the AU Small Finance Bank. It covers all charges and fees made by a bank to their customers.The following charges are taken from AU Bank i.e, processing fee, interest rate, late payments charges etc.
|
Processing Fees |
2% to 4% of the loan amount |
|
Documentation Charges |
Rs.350 |
|
CIBIL Report Charges |
Rs.50 |
|
Stamp Duty |
Actuals |
|
Loan Amount |
100% of the vehicle chassis |
|
Tenure |
1 to 5 years |
|
Interest Rate |
10% to 15% per annum |
|
Part Prepayment Charges |
Upto 5% of the remaining amount |
|
Charges for late payment of loans |
2% per month on the outstanding installment |
|
Swap Charges |
Rs.500 per transaction |
|
Bounce Charges |
Rs.500 per transaction |
|
Amortisation Schedule Charges |
Rs.500 per schedule |
|
Statement of Account Charges |
Rs.500 per statement |
|
Prepayment Statement Charges |
Rs,100 per statement |
|
Duplicate No Objection Certificate (NOC)/No Due Certificate (NDC) Charges |
Rs.500 per NOC/NDC |
|
Revalidation of NOC Charges |
Rs.500 per NOC |
|
NOC to convert from Private to Commercial & Commercial to Private Registration |
Rs.2,000 per NOC |
|
Loan Cancellation Charges |
Rs.3,000 per loan |
|
Loan Reschedulement / Rebooking Charges |
Rs.2,500 per loan |
The eligibility criteria required is different for different service providers. However, there are some basic criteria that must be met to avail AU Small Finance Bank commercial loan benefits.
1. Partnership firms, sole proprietorship firms, public limited companies, private limited companies, and self-employed professionals and non-professionals can apply for commercial loans in India.
2. The business entity that needs a commercial loan should have a good turnover. The turnover requirement will differ from lender to lender. You can check with your lender.
3. Each loan applicant should meet the minimum annual income requirement as a firm.
4. The firm should have been making profits for a certain period, which will be specified by the lender.
5. The company interested in a commercial loan should have been in business for a certain period, which will be mentioned by the lender.
6. The minimum age criterion for an individual who is applying on behalf of his or her firm is typically 18. The maximum age requirement is 66 years. This can change from lender to lender.
While applying for a AU Bank commercial loan, a firm or individual will have to compulsorily submit certain documents to the lender and they include:
PAN card for firms, companies, and individuals
VAT or GST statements for a certain period
Balance sheet
Income tax returns for a certain period
Profit and Loss statement for a certain period
Bank statements for a certain period
Proof of continuation in business. The company can submit trade licenses, sales tax certificates, Income Tax Returns, establishment certificates, etc.
Certified Copy of Partnership Deed
Sole Proprietorship Declaration
Board resolution
Certified true copy of Memorandum and Articles of Association
AU Small Finance Bank How to Login
All customers with savings or current accounts can have access to AU Small Finance Bank net banking or mobile banking platform. It is hassle-free and easy to use. One can register for AU Small Finance Bank net banking by following the below-mentioned steps:
Go to the homepage of AU Small Finance Bank net banking or visit the web portal of AU Small Finance Bank.
On the home page, look out for the option ‘New user registration’ or a similar option.
Proceed further, and enter details like bank account number, branch details, registered mobile number, and click on ‘Submit.’
As you click on ‘submit’ a one time password is sent to the registered mobile number. Enter the OTP and click on ‘confirm.’
Clicking on ‘confirm’ will create your temporary login details with a temporary username. Users can create their password.
After creating the password login and creating your permanent username, and accept all terms and conditions.
There are two ways to apply for a AU Small Finance Bank commercial vehicle loan that is :
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.
Before you apply for a AU Small Finance Bank commercial loan, check your monthly payments along with the total amount payable using an EMI Calculator. A commercial loan calculator is an online tool which computes your loan EMIs as per the details you provide.
This EMI calculator uses a mathematical formula to give you the amount of AU Small Finance Bank commercial loan EMI payable by you.
The formula is E = P * R * (1+R)^N / ((1+R)^N-1)
where E is EMI,
P signifies principal amount,
R stands for rate of interest,
N stands for the tenor of your loan in months.
AU Small Finance Bank Commercial Loan Payment Online
The following steps are required to payment online for AU small finance bank commercial loan i.e. :
1. Select your bank.
2. Provide your Loan details. Enter your 16-digit alphanumeric loan number twice.
3. Confirm Payment.
4. Receive online confirmation.
Contact number : 180012001200
Email id : [email protected]
Bank offered Financial Products
There are following documents are required for AU Bank commercial loan i.e. :
Documents required for commercial vehicle loan are – ID proof
Residence and office address proof
Asset proof and loan repayment records (if applicable)
Additional documents for guarantor
No, Experience proof is required which can be validated from deployment letter/Driving license/Commercial Vehicle ownership.
A commercial loan is a loan that is extended to businesses by a financial institution. Commercial loans are generally used to purchase long term assets or help fund day-to-day operational costs.
There are two ways to apply for a AU Bank commercial vehicle loan that is :
Offline method by visiting nearest AU bank branch
Online method through website
No. A bank account is mandatory. In case you don’t have a bank account, you can apply for a new bank account which will be considered even if it has no recent transactions.
This EMI calculator uses a mathematical formula to give you the amount of AU Bank commercial loan EMI payable by you.
The formula is E = P * R * (1+R)^N / ((1+R)^N-1),
where E is EMI,
P stands for principal amount,
R stands for rate of interest,
N stands for the tenor of your loan in months.
The minimum tenure period is 1 year and maximum tenure period is 5 years of AU Bank Commercial Loan.
You can contact through customer care number and customer care email id for AU Bank.
The minimum tenure period is 1 year and maximum is 5 years to apply for AU bank commercial loan.
Yes, the processing fee charged to apply for an AU Bank commercial loan is 2% to 4% of the loan amount.
Last Updated on : 05/Nov/2020Know More About
You're eligible for a Au Small Finance Bank Commercial Loan 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
Updated on 25 Nov 2017
| Au Small Finance Bank Commercial Loan Details | |
|---|---|
| Interest Rate (Monthly reducing balance) | 10% - 15% |
| Processing Fees | 2% to 4% of the loan amount |
| Loan Tenure | 1 year to 5 years |
| Pre-closure Charges | Varies with bank |
| Guarantor Requirement | Varies with bank |
Commercial Loans EMI Calculator