Commercial vehicle Loan
| Buses | Truck | Tankers | Tripers |
|---|---|---|---|
| Intracity | Small truck | Milk tanker | Transit Mixers |
| Intercity | Light Truck | Water tanker | Tempos |
| School and College Bus | Medium Truck | Oil tanker | |
| Staff Bus | Heavy Tuck | Chemical tanker | |
| Customized Truck | Petroleum tanker | ||
| Gas tanker |
- Individuals
- First-time users and buyers
- Small, medium , and large-sized fleet owners
- Proprietorship firms and Partnership firms
- Public Limited & Private Limited Companies
- Trusts and societies
- Schools and colleges
- Captive customers and transporters
- You can get a commercial vehicle loan at a low interest if your profile matches with the criteria put forward by the lenders.
- The processing time of a commercial vehicle loan is fast with easy documentation and approval.
- Most of the prominent banks in India provide commercial vehicle loans at an affordable rate of interest without any security.
- Some of the banks assign a personal relationship manager from starting till the procurement of the vehicle. He/she will do all documentation and address every issue related to the loan.
- Once all required documents are submitted, it takes around 7 days for the disbursal of the loan amount.
- Flexible repayment tenure: Usually, the repayment tenure offered in a commercial car loan is up to 5 years. This ensures low EMI amount to the borrowers enabling them to pay off the EMIs without any undue financial burden.
- Multiple vehicle financing: Whether you are an individual borrower or a fleet owner, you can get finance for a variety of vehicles such as tippers, trucks, buses, trailers, tankers, and other small and light commercial vehicles to grow your business.
- Easy processing: The process of applying for a commercial vehicle loan is easy, fast , and convenient. After the submission of all the required documents, banks usually take 4-5 days to process a new or used vehicle loan application.
- Simple documentation: Commercial vehicle loans come with a hassle-free and quick documentation process. The users can easily upload all the mandated documents online without visiting the bank directly.
- No credit-score compulsion: Unlikely other loans, commercial vehicle loans don’t require any existing credit scores. Borrowers having low or even zero credit score can avail a commercial vehicle loan with ease.
- Caters to multiple needs: The loan schemes are designed to cater to the borrowers’ diverse requirements including new and used vehicle financing, top up on existing loan , and refinancing of loans/vehicles for working capital.
- Customized solutions: To meet the specific requirements of the customers, every commercial vehicle loan scheme is customized according to the vehicle type, loan duration , and financial ability of each borrower..
- New commercial vehicle loan
- Old commercial vehicle loan
- Commercial vehicle refinancing
- Application process- At first, the borrower needs to fill up an application form online, then furnish all the necessary documents and finally provide the details of the personal guarantor if required.
- Loan approval- The bank will run a check to verify the documents and borrower’s eligibility. If the borrower is found to be eligible, the loan will be approved within 2 to 5 working days from the time of documentation.
- Processing charges- Banks ask for a minimum non-refundable amount for processing a commercial vehicle loan. This amount depends on the amount of the loan applied for and generally ranges from 2% to 4% of the loan amount.
- Loan Amount/Margin- The maximum loan amount for commercial vehicles varies from customer to customer based on their profile. A borrower can get up funding of up to 100% of the vehicle’s chassis.
- Repayment tenure- The repayment tenure for a commercial vehicle loan usually starts from 6 months and goes up to 60 months (5 years). The borrower is allowed to repay the amount in easy monthly EMIs.
- Security/collateral- While certain banks offer loans for commercial vehicles without any security or guarantor, some require a guarantor or co-applicant depending on the borrower’s profile and the product.
- Pre-payment of the loan- The borrowers can prepay the loan after 6 months of availing it by paying a pre-payment fee of up to 5% of the remaining loan amount. However, part pre-payment of the loan is usually not allowed.
| Name of the Bank | Interest Rate | Other Charges |
|---|---|---|
| ICICI Bank | Will depend on the customer’s profile, tenure of loan, etc. | Additional documentation charges – Rs.350 |
| Indiainfoline | Starts from 12% | Processing Fee: 1% of loan amount or Rs.4,500 to Rs.8,000 whichever is higher. Prepayment Charges: 6% within the first year and 4% after the first year. Loan Cancellation: Rs.3,000 |
| HDFC Bank | 8.70% to 21.25% IRR | Processing Fees: Up to 1.50% of the loan amount. Foreclosure/Prepayment Charges: Within 1 year from 1st EMI – 4% of Principal Outstanding. After 1 year from 1st EMI – 2% of Principal Outstanding |
| Kotak Mahindra Bank | Minimum: Reference Rate or Prevailing MCLR Maximum: 24% | Processing Fee: Up to 2% of loan amount Documentation Charges: Up to Rs.5,000 Prepayment/Foreclosure Charges: 5% of Principal Outstanding based on reducing balance repayment date |
| Axis Bank | 10.25% to 15% | Processing Fee: Rs.5,000 Foreclosure Charges: Up to 6 months from disbursement date – 10% of the Principal Outstanding. Part-Prepayment Charges: After 6 months from disbursement date – 5% of the part payment amount. Up to 6 months from disbursement date – 10% of the part payment amount |
Eligibility Criteria For New Commercial Vehicles Eligibility Criteria For Old Commercial Vehicles ICICI Bank Commercial Vehicle Loan Eligibility YES Bank commercial Vehicle Loan Eligibility
The eligible customers for a Commercial Vehicle Loan from YES BANK are as follows:
Commercial Vehicle Loan documentation KYC documents Income proof Experience proof Other Documents (As applicable) Yes Bank document the checklist is for indicative purposes only. Other documents may be needed as per individual requirements. Commercial Vehicle Loan Mahindra Finance Mahindra Finance offers loans on all types of Commercial Vehicles (new and used) of all major manufacturers. To meet your aspirations, we have specialized branches dedicated to providing commercial vehicles and equipment loans. We have also opened Transport Nagars for servicing diverse profiles like truckers, milkmen, shopkeepers, etc. Documents Required:
Aadhaar Card/PAN Card/Voter’s ID card/Driving License/Passport (Anyone)Identity proof- Aadhaar Card/Voter’s ID card/Driving License/Passport (Anyone)
Rental agreement/Voter’s ID Card/Passport/Ration card/Tel bill or Elec. Bill/Trade License/ Sales Tax Certificate (Any one)
Driving License/PAN Card/Registered Sale Deed/Govt. ID Card (For Govt. employees) (Anyone)
Can I avail of a commercial vehicle loan if I do not meet the eligibility criteria? Ans.
Yes. If you do not fulfill the eligibility criteria, you can still avail of the loan by applying for the loan with a co-applicant. If the credit and financial profile of your co-applicant is satisfactory, you may be eligible to get a loan. However, it will be at the discretion of the lender.
Do I need to provide a guarantor for availing of a commercial vehicle loan?
Ans.
Yes, you will need a guarantor to avail of a commercial vehicle loan. This criterion can, however, be waived off depending on your credit and profile strengths.
If I want to avail of a commercial vehicle loan, who can be my co-applicants?
Ans.
The co-applicants on a commercial vehicle loan could be your spouse, sibling, or your parents.
Can I sell the vehicle before I repay the loan?
Ans.
No, you will not be able to sell the vehicle unless the entire loan amount has been repaid. Once the outstanding amount is cleared, the bank/lender will issue a No-Objection Certificate (NOC) post in which the vehicle can be sold.
After I pay the last EMI, will I get the legal claim on the vehicle?
Ans.
After the payment of the last EMI, the bank will cancel the lien on the commercial vehicle and issue a loan closure letter, Form 35, and a No Objection Certificate (NOC) to the RTO for removing the lien from the RC book. Then a similar NOC will be issued to the insurance firm requesting them to remove the lien from the policy.
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