Commercial vehicles are different than domestic vehicles, and you need to register your commercial vehicle in the name of your business. Apart from that, you may need to buy some heavy vehicles like trucks and forklifts for your business, and you need a commercial vehicle loan for the same. Commercial vehicle loan companies can provide you the loan for buying heavy vehicles like mixers, trucks, and tippers. Apart from that, you can also purchase small vehicles for your business with such loans. Individuals or companies who want to buy vehicles for their business can apply for such commercial vehicle loans.
Rate of interest offered by Commercial Vehicle loan companies:
As stated above that partnership firms, individuals, trusts, companies and any proprietary firm can apply for commercial vehicle loans. But, before you apply for such loans, you need to check the rates of interest offered by different commercial vehicle loan companies. You can find two types of rate of interest, one fixed rate of interest and second variable rate of interest. The interest rate depends on your financial background. Commercial vehicle loan companies will check the turnover of your business and they will check the stability and requirement of your company. Then they will disburse your commercial vehicle loan according to your financial capability. It is better to search for such commercial vehicle loan companies online and compare their interest rates and choose an affordable deal. But, along with the interest rate, you must also check their hidden charges such as processing fees, application fees, foreclosing charges, late fine, etc.
Duration of Commercial Vehicle Loan:
Commercial vehicle loan companies can offer a 100% finance option and you do not need to pay any down payment for buying a new vehicle for your business. But it depends on your turnover and credit history. If you have a poor credit score and a huge amount of existing loans then they can finance up to 80% of your vehicle price. In this case, you can talk to the lender and show your documents to know your eligibility. You can borrow a commercial vehicle loan for a period of six months to four years. Sometimes, private lenders can offer you long term loans, and you need to pay small EMIs with a higher rate of interest for such long-term commercial vehicle loans.
Documents required for Commercial Vehicle Loans:
You need to submit various documents to avail of commercial vehicle loans. You have to fill up the loan application form and submit your documents along with the application form. There are some online portals available where you can directly apply for a commercial vehicle loan.
Following are the documents that will be submitted with the application form:
After filling your application form, you must submit your ID proof and address proof. Along with these documents, you have to submit your business proof.
You will also require to submit your income tax files, last three years bank statements, inventory records of the business and registration certificates of your company at the same time
If you have a poor credit score then you need to provide contracts of transportation or a guarantor. It is better to talk to the representative of a commercial vehicle loan company and he can assist you to get the loan within a short period of time.
After submitting all your documents, you need to wait for approval. Most of the commercial vehicle loan companies provide approval within a week, and you can check the status of your loan on their website.
Once your loan is approved, the lender will directly transfer the amount to the dealer, and you can collect your car from the respective dealer.