Business Loan For Vehicle Purchase, Apply Online

A vehicle for commercial use might be quite advantageous. It is specifically true for businesses operating in the transportation sector, where vehicles are an essential component of the overall business strategy. A business auto loan can assist your company in taking advantage of fantastic deals and discounts to buy commercial vehicles.

Buses, trucks, tippers, transit mixers, and other large vehicles, as well as lightweight commercial vehicles like matador vans, are all eligible for commercial vehicle loans. Borrowers can buy old and new cars, while most commercial auto loans used to acquire brand-new cars. Commercial vehicle loans are used to pay for acquiring a vehicle that will be used for commercial or company reasons. Several lenders in the nation are providing these loans at competitive interest rates. The application process for a business car loan is simple, quick, and involves little paperwork.

Types Of Business Loan For Vehicle Purchase

Business loans are available for various vehicles utilized in diverse locations and for several purposes. Business loans for vehicles are divided into three main groups according to the types of vehicles for which these loans are 8 taken, namely:

Loan For A New Commercial Vehicle

Customers can get this business loan to buy new commercial cars for their businesses. Lenders will finance up to 100% of the worth of the vehicle’s base frame or chassis.

Loan For A Used Commercial Vehicle

Loans for purchasing pre-owned or used vehicles of all makes are known as old or used commercial vehicle loans. Borrowers can anticipate receiving a loan for used cars up to 15 years old with this type of loan.

Refinanced Business Loans For Vehicle

Refinancing a commercial vehicle involves moving an existing loan to a new lender to benefit from lower interest rates. Refinancing also includes obtaining additional credit on a current loan.

Benefits of Business Loan For Vehicle

Flexible payback period

Commercial car loans typically provide repayment periods of up to five years. This guarantees borrowers a low EMI amount, allowing them to repay their debts without experiencing unnecessary financial stress.

Simple application process

Applying for a business vehicle loan is quick, simple, and convenient. A new or used automobile loan application is typically processed by NBFCs within 3 days after receiving the necessary documentation.

Financing for multiple vehicles

To expand your business, you can obtain financing for many vehicles, including lorries, trailers, buses, vans, trucks, and other small and lightweight commercial vehicles, whether you are an individual borrower or a fleet owner.

Customized strategies

Each commercial vehicle loan program is customized to meet the client’s needs by the kind of vehicle, loan term, and financial capacity of each borrower.

Who Can Qualify For A Vehicle Loan?

Different customer segments with a wide range of profiles can apply for this kind of vehicle loan. The list of clients thought to be qualified for this loan is as follows:

Individuals
Fresh clients and users
Owners of small, medium-sized, and big fleets
Ownership businesses and partnership businesses
Private and public limited companies
Charities and organizations
Universities and institutes
Transporters and captive clients

Eligibility Criteria For A Commercial Loan For Vehicle

For New Vehicles

Salaried borrowers should have more than two years of stable employment, and those who are self-employed should have at least two years of company experience.

Trusts, societies, private/limited businesses, and organizations must have been around for at least two years.

Ownership documentation for one or two commercial vehicles dating back one to three years is required for fleet operators and other current vehicle owners.

Must submit two years’ worth of audited financial statements.

Need an internal or external guarantor sometimes.

Must have lived in their current residence for at least two years.

For Old Vehicles

Clients must have 3 to 5 years of experience, based on their specific profiles.

Features Of Business Loan For Vehicle Purchase

If your profile fulfills the criteria set forth by the lenders, you may be eligible for a low-interest commercial vehicle loan.
A business loan for the vehicle has a quick processing time and simple application and approval processes.
Without requiring any security, many reputable Indian NBFCs offer business loans for a vehicle at reasonable interest rates.
The disbursal of the loan amount takes about seven days once all necessary documentation is filed.

Documents Needed For A Commercial Loan For Vehicle

Residential proof and KYC documents	Aadhaar card PAN card Voter’s id card Rental agreement Driving license
Income information	Last three months’ pay slips, Last 6 months’ bank statement, ITR for the last 2 years
Other documents	A cheque for the processing fee
	Application form with attached photograph
	2 passport-size photographs
	Proof of current vehicle ownership
	Vehicle information and a valuation report
	RC copy and insurance for the car
	Details of the fleet list
	In the case of first-time buyers, fleet owners, and experienced borrowers, trade references
	Evidence of land ownership (in the case of farmers)
	Two years worth of audited financials (for private or limited businesses, partnership firms, trusts, and societies)
	Track of loan repayment (if any)
	Partnership agreement

Methods for Applying A Commercial Loan For Vehicle

Step1: Verify Your Eligibility ( Check your eligibility for a business loan with only a few details).
Step2: Upload Documents (Complete your application by uploading the required documents).

Step3: Wait for Approval (All you have to do is wait for your application to be reviewed after submitting the application form).

Step4: Obtain the funds.

Interest Rate And Loan Fees

Personalized Interest Rates	Depending on the applicant’s profile and the company’s needs
Period of Loan	It ranges up to 36 months.
Processing Charges	2-3% of the sanctioned loan amount
Pre-closure Fees	NIL
Collateral	Not needed (depending on the borrower’s profile)
Loan Type	Business loan
Loan Amount	Up to 100% of the vehicle’s chassis

Business Loan For Vehicle Purchase FAQs:

1. Who may I include as co-applicants if I wish to obtain a commercial vehicle loan?

You might be able to co-apply for a business vehicle loan with your partner, sibling, or parents.

2. Can I resell the car before paying off the loan?

No, you won't be allowed to sell the car until the full loan balance has been paid off. The NBFCs or lender will issue a No-Objection Certificate (NOC) once the remaining balance is paid in full, following which the car may be sold.

3. Do I need to have a guarantor to get a loan for a business vehicle?

No, a guarantor is NOT required to obtain a loan for a business vehicle. However, depending on the strength of your credit and profile, this requirement may changed.

4. How is the qualification for commercial vehicle loans determined?

Make sure your CIBIL score is desirable: When determining whether you qualify for a vehicle loan, your credit score is a crucial consideration. Be sure to pay your EMIs and taxes on time: You can be eligible for a bigger loan if you have a perfect track record of on-time payments.