How to Get a Commercial Vehicle Loan in 5 Steps?

The loan for the purchase of commercial transport vehicles like a bus, truck, tanker, car or three-wheelers is known as a commercial vehicle loan. Any individual, organization, business house or a trust can avail the loan to buy the aforementioned commercial vehicles.

Vehicle financing or commercial vehicle loan is a significant financing sector in India. Many banks and NBFCs provide this at attractive interest rates, and with fewer documents. The loan processing is simple and gets quick approval, once you fulfil all the eligibility criteria.

How to Get a Commercial Vehicle Loan?

The loan application process and approval is easy and hassles free. You may get your commercial vehicle loan in just five steps:

1. Check your CIBIL score: A good credit score is always a pre-requisite of any loan application. You must check your credit rating before applying for a commercial vehicle loan. If the credit rating falls short of the required score, take some time to build it up and then go for the loan. Higher the credit rating better will be your chances of getting a loan at favourable terms. You must also check your current financial situation as this will have an impact on the loan amount and the amount for the down payment. 

2. Do in-Depth Research of Available Options

Many lenders in the market would be waiting for you to approach them for a loan. It is good to do some research about all the available options before selecting one. Different lenders offer different interest rates and other benefits like flexible repayment, long tenures, lower down payment, etc. choose the one that suits you the best and go for it. If you have a good credit rating, you may even bargain your terms and get a loan at a lower interest rate.

3. Calculate Loan EMI with Commercial Vehicle Loan EMI Calculator

You must select a lender and its terms and conditions for a loan keeping in mind your loan repayment capacity. The EMI amount should be such that you must be able to pay it regularly every month. You may use an online commercial vehicle loan EMI calculator for this purpose. It is available on the website of every lending institution. You have to feed details like the loan amount, the interest rate and the tenure to the EMI calculator and it will calculate WMI amount for you. Calculate EMI with different values of these variables and select the one that best suits you. You may also compare the EMI of different lenders and can take your decision.  

4. Be in Direct Touch With the Lender

It is preferable to be in direct touch with the lender rather than through an automobile dealer. Direct contact can help you in negotiating your terms, in discussing the available options and selecting the most suitable. You can also learn about any hidden charges, available schemes, or any upcoming offers through your contact with the lender.

5. Check your Eligibility and Decide Down Payment Amount

After thorough research about the lenders, check your eligibility for the loan. You must also verify your capacity to make a down payment. Most of the lenders have the same eligibility criteria, but different down payment policy. You must opt for paying a higher down payment as it will lower down the EMI amount, will reduce the loan tenure, and will save the interest amount.

Availing a commercial vehicle loan in India is very simple and quick. You can avail this loan at very competitive interest rates with easy repayment terms and affordable EMI. It is the best means to buy a commercial vehicle.

About This Author

Rahul Kumar Joined: February 28th, 2020