Commercial Vehicle Loan: Every day people are looking for work and many of them think of earning by using one or the other vehicle. Vehicles that can be used for earning or are used for earning are called commercial vehicles. Commercial vehicles can be a bit more expensive than normal vehicles as they are taxed more by the government. But there are some commercial vehicles on which the government also gives subsidies. Due to the high cost, commercial vehicles are mostly bought on loan.
Buying a commercial vehicle can be a better option for you to earn. In today’s blog, we will tell you the method of taking a loan to buy a commercial vehicle, interest rates on loans on commercial vehicles and what is the maximum and minimum EMI rate on commercial vehicles.
What are commercial vehicles?
Commercial vehicle refers to such a vehicle that can give us financial benefit from its use. Such vehicles are used to carry loose goods from one place to another, to carry passengers. Nowadays such vehicles also come under the category of commercial vehicles which act as food trucks or moving restaurants.
Essentiality of loan against commercial vehicle
The price of such a vehicle is high and a common man cannot buy it easily. Even if you have enough money to buy a commercial vehicle, you cannot buy it by paying the full amount. This happens because you may face higher taxes if you do so. By buying this resource on loan, the government gives you a subsidy easily and you can easily buy this vehicle on loan.
If the price of a commercial vehicle is less than 5 lakhs, then you can buy it by paying the full amount in one go. But if the cost of the vehicle is more than 5 lakhs, then taking it on loan will be a profitable deal for you. If
you want to buy a high-priced vehicle by giving a lump sum amount, then it will not be possible, but you can buy it now in the loan and after paying the loan installment for some time, use the process of foreclosure.
How to take loan on a commercial vehicle?
The process of taking a loan against a commercial vehicle is a bit complicated as compared to normal vehicles. If you want to take a loan on a commercial vehicle, then you can follow the following steps.
Step-1: Select your commercial vehicle and also select the model of the vehicle you want to buy.
Step-2: Understand the interest rates applicable on commercial vehicles in any loan-giving bank or finance company.
Step-3: The finance company asks for income proof, bank passbook copy, identity proof, KYC documents and other documents as per the requirement of the applicant. It is mandatory to attach all these documents with the loan file.
Step-4: After applying for the loan, you have to wait for the processing, as soon as your loan is approved, you get the loan amount.
Note: To buy a commercial vehicle on loan, you may need to submit documents related to the property, so first you should ask about it the concerned financial company.
What is the Interest Rate on Commercial Vehicle Loan?
The interest rates on the loan amount for the purchase of a commercial vehicle may vary from bank to bank. But according to the guidelines of RBI, this interest rate can be from 12% to 26%. Due to the high-interest rates, very few people buy heavy vehicles in commercial vehicles. But it can be seen as a good option for earning.
How much loan is available for buying a commercial vehicle?
If you want to buy a commercial vehicle, then you get a minimum loan of 10 lakhs and a maximum of 50 lakhs. It can also depend on your profile and how much loan you get. People who have a good source of income or assets are more likely to get a loan. You can also easily take a loan to buy an old vehicle.
Which bank is best to take loan for a commercial vehicle?
If you are buying through commercial vehicle loans then you can choose HDFC Bank and Axis Bank. Because in HDFC Bank you have to pay interest from 8.75 to 21% and in Axis Bank, the interest rate on commercial vehicles is from 10.25% to 15%.
Can I buy a used commercial vehicle on loan?
Yes, you can take a loan against an old or second-hand commercial vehicle. The amount of loan you will get on which vehicle will depend on the condition of that vehicle and your profile. You can also know the interest rates of loans on a used vehicle by going to that bank of the finance company.
At what percentage of interest is it higher to take a commercial vehicle loan?
First of all, you should choose the bank which provides better facilities for you. It will be better if you take a loan from a government bank. A bank with an interest rate of 5% to 18% on a loan to buy a commercial vehicle would be a better choice.
Conclusion
In today’s time, buying a commercial vehicle through a loan has become a very easy process. The interest rates on the loan are subject to change as per the guidelines of RBI. But take it on loan only when you use it properly or you already have some source of income. With this, you will be able to easily pay the EMI of the loan and you will not have to face additional financial problems.
