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:
- 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
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
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.