Commercial Vehicle Loan - A Complete Guide & Benefits of Vehicle Financing

Commercial vehicles are an integral part of a nation’s economy. Without them, businesses would not be able to render last-mile logistical services to their customers. Furthermore, commercial vehicles such as three-wheelers also act as the preferred mode of public transport in growing economies like India. This also points out to the fact that owning one or a fleet of commercial vehicles can help one become financially stable.

Just like private vehicles, commercial vehicles are also becoming expensive with every passing year. Hence, applying for a commercial three-wheeler loan has become a necessity recently.

Common Features of Commercial Three-Wheeler Loans

There are quite a few impressive features that lenders bundle up with their commercial three-wheeler loan schemes. Some of them are mentioned below:

• It is pretty easy to get one’s commercial three-wheeled vehicle loan application approved.
• The processing time for commercial three-wheeled loan applications is fast-tracked when pertinent documents are submitted.
• Almost all lenders in India offer loans for the purchase of commercial three-wheeled vehicles at low-interest rates. The best part is that lenders offer these loans without securities.
• Lenders often assign personal relationship managers from the get-go. This ensures that all processes pertaining to the purchasing of the vehicle conclude smoothly.

3 Variations of Commercial Three-Wheeler Loans

The available variations of commercial vehicle loan schemes designed for three-wheelers are mentioned below:

1. Standard Commercial Three-Wheeled Vehicle Loan

The standard commercial three-wheeled vehicle loan is designed for customers who want to buy a new commercial vehicle. There are lenders who can cover 100% of the commercial vehicle’s ex-showroom price. However, the interest rates and EMIs for those loans tend to be a bit steep. Lenders can also offer additional funding in case the commercial vehicle needs body construction or a host of other modifications.

2. Commercial Three-Wheeled Vehicle Loan for Old Vehicles

Leading lenders also design and offer loan schemes ideal for the used commercial vehicle market. Not everyone needs or can buy a new commercial three-wheeled vehicle. To help those people out, leading lenders offer loans designed for commercial vehicles under the operational age of 15 years. These loan schemes tend to cover almost 90 percent of the pre-owned commercial vehicle’s asking price. 

3. Commercial Three-Wheeled Vehicle Refinancing

Commercial three-wheeled vehicle refinancing schemes are designed for commercial three-wheeler owners who are not satisfied with their current lender. Often there are instances where a lender might be offering steep interest rates on a commercial vehicle loan. Or EMIs for a commercial three-wheeler loan are hefty and the loan conditions are not customer-centric. In such cases, three-wheeled commercial vehicle owners can choose to change lenders by applying for commercial vehicle refinancing.

Additional Read: Top 5 Ways To Improve Your Credit Score Fast

Benefits of Availing of Commercial Vehicle Financing Solutions

The benefits of commercial three-wheeled vehicle loans are many. Some of the most appealing aspects of this particular variant of financial products are mentioned below.

• Commercial vehicle loan schemes offer borrowers flexible repayment tenures. Similar to private vehicle loans, commercial vehicle loans can come with tenures spanning up to 5 years. A long tenure helps one to reduce the EMIs they have to pay per month. But there is a catch. A loan with a long tenure comes with steep interest rates. 
• Unlike private vehicle loans, commercial vehicle loans can offer funding to purchase multiple commercial vehicles. This makes commercial vehicle loans perfect for people who want to own a fleet of commercial vehicles and grow their businesses.
• Commercial vehicle loan applications are processed within 5 business days. All one would have to do is submit pertinent documents. 
• Similar to private vehicle loan schemes, commercial vehicle loan schemes can be applied online. One can even submit pertinent documents remotely. It means that one would not even have to apply for a loan before they visit the commercial vehicle dealership. They can apply for a loan at the dealership.
• Lenders offering commercial vehicle loans do not demand a high credit score or spotless credit history from loan applicants. There are lenders who finance commercial vehicles even when the borrower has no credit score or a clear credit history.
• Lenders offering commercial vehicle loans tend to offer bespoke loan particulars. For instance, loan particulars like EMIs, interest rates, etc. are optimized as per the type of the vehicle. Loan particulars are also optimized to suit the financial abilities of the borrower.

To learn more, feel free to contact a professional associated with a leading lender.

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