Light industrial vehicle financing is loans given to clients to acquire automobiles for individual, corporate or business reasons. Applicants are often self-employed persons, charities, partnership businesses, organizations, etc.
These commercial vehicle loans are available to people who work in the transportation industry. Buses, trucks, dump trucks, lorries, and other light and compact commercial vehicles may all be purchased with a commercial vehicle loan.
This blog post will first help you understand the nuances of a light commercial vehicle loan. Then we will get into the details of how you can avail of one using IndusInd Bank, as well as the eligibility and documentation details.
What is the Goal of this Commercial Loan?
Industrial vehicle loans, as previously mentioned, are intended to finance the acquisition of a vehicle that will be used primarily for commercial or business reasons.
Prominent lenders in the nation, such as IndusInd Bank, provide these loans at low-interest rates. The application procedure for a business vehicle loan is simple, quick, and involves little documentation.
Spotlights of Commercial Vehicle Loans
- If your profile fulfills the requirements set out by the lenders, you may be eligible for a low-interest commercial car loan.
- A business vehicle loan has a quick processing period and uncomplicated paperwork and approval.
- Most of India’s major banks offer commercial vehicle loans with low-interest rates and no collateral.
- Some banks appoint a personal relationship manager from the beginning to the end of the vehicle acquisition process. They’ll get done with all the paperwork and deal with any issues throughout the financing process.
- The loan money is disbursed when all relevant documentation is provided, which takes around 7 days.
Kinds of Commercial Vehicle Loans
Commercial loans are available for some retail vehicles utilized in various locations and for multiple purposes. Commercial vehicle financing is divided into three groups based on the types of vehicles for which these loans are offered:
Novel Commercial Vehicle Loan
Customers may get this form of commercial vehicle loan to help them buy new commercial cars for their businesses. Banks will pay up to 100 per cent of the vehicle’s chassis or fundamental frame value. Depending on the borrower’s profile, some banks give extra finance for car body assembly in certain situations.
Existing Commercial Vehicle Loan
Loans for the purchase of pre-owned or second hand commercial vehicles are known as existing commercial vehicle loans. Borrowers may expect to get financing for automobiles up to 15 years old with this loan. Most banks will finance up to 85-90% of the old vehicle’s value or depreciation panel value.
Commercial vehicle financing is available from a few approved institutions. Of course, commercial automobile loan interest rates differ from one lender to the next.
The loan amount and interest rates are determined after assessing the applicant’s characteristics and the vehicle’s section. The points given above will brief you about everything related to commercial vehicle loans for your business.