What is commercial vehicle loan?

Heavy vehicles like Buses and trucks used for commercial purposes requires huge funds to be purchased. Commercial vehicles are important in businesses and contribute to productivity and income. Thus, banks offer loans to such businesses which is up to 80% of the total cost. The vehicle is pledged as security for the loan.

Documents required:

• Two years of Income Tax returns
• Audited financial statements of the business
• Six months of bank statements
• Proof of age
• Government ID proof
• Cheque for processing fee
• Electricity bill or telephone bill

Features of commercial vehicle loan:

• Vehicle loans are especially designed to match the funding requirement of transportation businesses.
• Borrowers can get such loans conveniently if they fulfill the eligibility criteria.
• The processing of vehicle loans takes lesser time.
• Easy documentation and hassle-free disbursal of loans.
• Banks also provide finance for the purchase of pre-owned vehicles.

Who can avail a commercial vehicle loan?

• Proprietors and partnership firms
• Private and public limited companies
• Trusts and societies
• HUF, schools, and colleges
• Transportation businesses
• Small, medium, and large fleet owners