If you are thinking of buying a vehicle for commercial purposes, then you definitely would require finance for it. Buying a bus or a truck is a big investment even if you are going for a second-hand vehicle.
What Is a Commercial Vehicle Loan?
Commercial vehicles like trucks, buses, and tippers are very important if you want to run a transport business. The loan for light commercial vehicles like three-wheelers also falls under this category. All these vehicles contribute to productivity and are income sources for their owners. These loans are availed by either individual, Hindu Undivided Families, partnership firms etc. All banks and NBFCs (Non-Banking Financial Company) like https://www.tvscredit.com/ grant such loans.
For a person who wants to buy a vehicle for commercial purposes, opting for a commercial vehicle loan is a very viable solution. These loans offer customized financial solutions and thus one ends up reaping better benefits with it than one would with regular loans. The commercial vehicles are costly and one may not really have that much surplus cash to invest in it. Moreover, it makes more sense to take a loan if you are getting it at lucrative rates rather than putting your own money.
The commercial loan interest rates are different depending on the customers and the vehicles that you want to buy. They are dependent on the customer’s background, including aspects like business turnover, paying capacity and also the number of vehicles owned. The loan is available both at a fixed and variable rate of interest.
Advantages of Taking Commercial Vehicle Loans
As the repayment tenure of this loan is generally between 4 and 5 years, the EMIs are low and affordable. However, you can also take it for as less as six months. Obviously, the lesser the tenure, the more the EMI amount. The minimum amount that one can go for is INR 1 Lakh if your business is a small enterprise. However, for large enterprises, it can go up to INR 5 crore.
Avail for a Variety of Vehicles:
This commercial vehicle loan is available for a number of commercial vehicles. This includes tankers, trailers, buses, trucks etc. You can thus avail this loan and get into many types of businesses.
Easy to Apply:
The process for filing for the loan is easy and convenient. You need a few documents like address proof, bank statements of past six months etc. The list of documents can vary from bank to bank.
Once you submit all the relevant documents, the approval generally happens within a week. Most of the time, the disbursal is direct to the dealer of the vehicle.
No Impact of a Credit score:
The credit score of the individual doesn’t have any impact on the eligibility criteria in case of a commercial vehicle loan. In all other loans like a home loan or car loan, it is always a big factor.
Seeing the various advantages of the commercial vehicle loan, it makes sense to go for it.