Frequently Asked Questions (FAQs)
What is a Commercial Vehicle Loan?
A Commercial Vehicle Loan helps businesses buy vehicles like trucks, buses, or vans for commercial use. The loan is secured against the vehicle itself, making it an easy financing option for businesses.
Who can apply for a Commercial Vehicle Loan?
Anyone who needs a vehicle for business purposes can apply, including small business owners, fleet operators, transport & logistics companies, and self-employed professionals.
What types of vehicles can be financed?
You can get a loan for trucks, trailers, buses, delivery vans, construction vehicles (like dump trucks and cement mixers), and even used vehicles, depending on the lender’s policies.
Can I get a loan for a used commercial vehicle?
Yes! Many lenders provide loans for both new and used commercial vehicles. However, used vehicles may have restrictions based on age, mileage, and condition.
How much loan amount can I get?
The loan amount depends on factors like the vehicle price, your credit score, and financial history. Some lenders offer up to 90% of the vehicle cost, while others may finance the entire amount.
What documents do I need to apply?
Most lenders ask for identity proof (Aadhaar, PAN, Passport), business registration proof, income tax returns (if applicable), bank statements for the last 6 months, and vehicle-related documents.
Do I need to make a down payment?
Yes, many lenders require a down payment of 10-20% of the vehicle price. Some financing options may cover 100% of the cost if you qualify.
What is the repayment period for the loan?
The repayment period usually ranges from 1 to 7 years, depending on the lender and loan terms. Some banks may offer even longer repayment tenures.
Can I get a Commercial Vehicle Loan with a low credit score?
Yes, but it might be challenging. If your credit score is low, some lenders may still approve your loan, but they might charge a higher interest rate or require a higher down payment.
How fast can I get loan approval?
Most lenders process applications within 24 to 72 hours, provided all documents are in order. Some offer instant approvals for eligible customers.
How can I apply for a Commercial Vehicle Loan?
Applying is simple! Just follow these steps:
1️⃣ Check your eligibility and loan options.
2️⃣ Submit required documents like ID proof, business proof, and bank statements.
3️⃣ Get loan approval within a few days and drive your business forward!
