If you are planning to buy a commercial vehicle such as bus, truck, trippers, etc., opting for commercial vehicle loans is the best way to go. Commercial vehicle loans are much more beneficial than other regular loans. If you don’t know anything about commercial vehicle loans then you can contact with the banks or private financial lenders. Even you can do some research online and gather information from lender’s websites.
What is a Commercial Vehicle Loan?
Just like any other loans such as house loan which you buy for your house, personal loans for your personal purpose, study loans for studies, a commercial vehicle loan is a loan that one can get for buying a commercial vehicle for his or her business. You can get this loan for any type of commercial vehicle.
First of all, let’s see who all can avail this loan? First-time buyers of trucks and buses, Small, medium and large-sized fleet owners, Proprietors, Partnership firms, Public Limited Companies, Private Limited Companies, Trusts, Societies, Schools and Colleges can avail the commercial vehicle loans. If you belong to any of the above-mentioned categories then you can easily get a commercial vehicle loan.
What are the eligibility criteria?
The eligibility criteria are different according to the type of buyer. If you are buying a new commercial vehicle the eligibility criteria are different and if you are buying a used commercial vehicle then you have to submit some additional documents for such loans. Let’s look at both of them one by one.
If you are buying a new commercial vehicle then your age must be between 24 and 65 years, if you are a salaried employee then you must be working for at least 2 years in the same job, and if you are self-employed then you must have an experience of at least 2 years in business, trusts, associations, private companies, societies, and partnership firms. Your business should be at least 2 years old and you need to produce the audited financial statements of the last 2 years. Apart from that, for the first time buyer, the guarantor is needed for the commercial vehicle loans and you may secure your loan with some collateral.
If you are buying old commercial vehicles then you must own at least 2 vehicles for at least 1 year, and 1-year repayment record on commercial vehicles should be submitted for a new commercial vehicle loan. Apart from that, you need to submit all your financial statements with the application form, and you can contact your bank in this regard.
Other important things to know about Commercial vehicle loans
Usually, this type of loans is offered for a period of 1 – 4 years. The rate of interest will differ from lender to lender but usually, it ranges from 10 to 15 %. You need to produce a list of documents to avail the loan such as address proof, proof of identity, past records of loans if any and bank statements of the past half year.
Benefits of Commercial Vehicle Loans
As the reimbursement period of this loan is 4 – 5 years the EMI gets pretty low. CVL is available for various types of vehicles such as truck, buses, tippers, trailers, tankers and many more. The approval process of this commercial vehicle loan is very easy and expedient. People with low credit score can also apply and get the loan quite easily.
So this was everything you needed to know about commercial vehicle loans. This is the best option for you when you are planning to buy a commercial vehicle for your business. Nowadays, there are a number of lenders available in the market and you can apply for commercial vehicle loans online.
Комментарии