Business vehicle loans are loans given to borrowers to purchase vehicles for commercial or business purposes. Borrowers are typically self-employed individuals, trusts, partnership firms, organizations, and so on. Car loans are available to those who work in the transportation industry. Trucks, buses, tippers, tankers, and other light and small commercial vehicles can all be purchased with a commercial vehicle loan. If your profile matches the criteria set forth by the lenders, you may be eligible for a low-interest commercial vehicle loan.
Different types of business vehicle loans
- Loan for a new commercial vehicle. Customers can get this type of commercial vehicle loan to help them buy new commercial vehicles for their businesses. Banks will usually fund up to 100 percent of the vehicle’s chassis or base frame value. In some cases, depending on how the borrower’s profile is, some banks provide additional funding for vehicle body construction.
- A loan for an old commercial vehicle. Loans for the purchase of pre-owned or used commercial vehicles are known as old or used commercial vehicle loans. Borrowers can expect to receive financing for vehicles that are up to 15 years old under this loan.
- Refinancing a commercial vehicle. Commercial vehicle refinancing involves banks either offering a loan on an existing vehicle that is debt-free or taking over an existing business vehicle loans and providing additional financing based on eligibility.
What are the benefits?
- Because of the very many benefits that it provides, a commercial vehicle loan is the most preferred option for borrowers who are either planning to purchase their first commercial vehicle or adding a new car to their existing number of commercial vehicles.
- Flexible repayment terms- Typically, a commercial car loan has a repayment term of up to 5 years. This guarantees borrowers a low EMI amount, allowing them to pay off their EMIs without undue financial strain.
- Whether you’re an individual borrower or a fleet owner, we can help you finance multiple vehicles. The application process for a business vehicle loan is simple, quick, and convenient.
- Documentation is simple-commercial vehicle loans that have a quick and straightforward documentation process.
A commercial vehicle loan has a quick processing time and easy documentation and approval. The majority of India’s prominent banks offer commercial vehicle loans with low-interest rates and no collateral. From the very beginning to the ending moment of the vehicle procurement process, some banks assign a personal relationship manager.