Commercial vehicle loan

Checklist Documents That Are Required To Avail A Commercial Vehicle Loan?

Commercial vehicles such as buses, trucks, taxis, etc, are essential for any kind of transportation business. These vehicles help different businesses by increasing profits and productivity. In India, many lenders offer secured commercial vehicle loans to individuals or businesses who require these vehicles for commercial purposes. 

It is fairly easy to get this kind of loan if the applicant fulfills the commercial vehicle loan eligibility criteria. Generally, the applicant has to pay a 20 percent down payment of the vehicle, and the rest of the amount can be financed. If the applicant matches the lender’s criteria, they can even get a lower interest rate on their loan. The documentation is not that complicated, but it needs to be perfect to avoid rejection. 

Some important documents that are required to avail a commercial vehicle loan are:

  • Properly filled application form 
  • Adhaar card
  • PAN card
  • Passport
  • Birth certificate
  • Driving license
  • Two years income tax returns or ITRs
  • All audited financial documents of the business
  • Bank statements of the last 6 months
  • A Cheque for the processing fees
  • Ration card
  • Recent Electricity & telephone bill
  • Rental agreement or proof of ownership of the office or factory

Different states have different documentation requirements. Kindly go through the concerned authority’s website and if possible visit their office to get the exact nature of documents you will need.

Must Read: 4 Things To Note While Availing Commercial Vehicle Loan

What Is A Commercial Vehicle Loan? -Its Eligibility & Documents Required

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A commercial vehicle loan is a great tool in case you want to start a transportation business or expand an existing one.

Below is some important information you need to know before availing a commercial vehicle loan.

In commercial vehicle loans, the lender provides lump-sum funds for buying vehicles like buses, trucks, and tippers. Whether heavy or light/new or used, you can apply for the purchase of any commercial vehicle you desire.

Fullerton India is a company that keeps the customers’ needs in mind and gives them several benefits:

  1. Loan amount starts from INR 75,000
  2. Hassle-free loan application
  3. Wide range of schemes
  4. Quick loan disbursal
  5. convenient payment
  6. Timely status update

Documents required

After filling the application form, the borrower would have to provide identity proofs, address proofs, age proofs, and bank statements of the past six months. It’s better to keep digital copies of these documents handy. Applicants require giving proof of business existence, profit and loss statement, and income tax returns of the last three years.

Rate of interest

The rate of interest of a commercial vehicle loan depends on the background details of the borrower, such as business turnover, repayment track record, number of vehicles owned, etc.

Additional Read: Things You Need to Consider Before taking commercial vehicle loan

What are the Eligibility Criteria & Documentation for Commercial Vehicles Loans?

Basically Commercial Vehicles are the transports used for commercial purposes. Buses, trucks, tippers, tankers, heavy Vehicles, light commercial vehicles come under this category. A large number of people involved in this transport business. Hence, financial institutions offer Commercial vehicle loan to the people who want to buy this vehicle but not having enough money for purchasing. On can get the loan at the lower interest rate, flexible EMI with minimum documentation.

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The Eligibility Conditions For commercial vehicle loan:

  • Job stability of 2 years for salaried & business stability of 2 years for self-employed applicants.
  • Limited companies (public & private), partnerships, trusts, etc. need to show audited financial records of the last 2 years.
  • The applicant must have residence stability of at least 2 years.

Documentary Requirements For commercial vehicle loan:

  • Correctly Filled-up application form
  • Identity proof
  • Address proof
  • Income proof – salary slip for the last 3 months/ITR for last 2 years
  • Bank statement of last 6 months
  • Repayment track record

Thus, there are several points that you need to remember when you decide to apply for a commercial vehicle loan. Keep your documents in order & shop around for available options from the financial institutions. Once you are aware of the relevant information, select the lender.

Must Read: Things to Consider while Availing of a Commercial Vehicle Loan