Vehicles which are used in the transportation of goods and passengers from one place to another are known as commercial vehicles. Commercial vehicles are more prone to accidents and repair thus it’s very important to avail finance for commercial vehicles. Any vehicle that carries more than nine people is said to be commercial. Commercial vehicles generally have diesel fuel tanks.
Factors to remember before availing loan for your commercial vehicle
To avail finance for commercial vehicles, not an easy task for sure. There are a lot of factors to be kept in mind before availing the loan. For example, a number of documents are needed, and you also need to have an idea about the rate of interest and the extra charges. House loans, car loans, and educational loans are very common but very few people are aware of commercial loans especially regarding the purpose they serve.
Big business, wholesaler and several firms or factory owners avail this sort of loan. These loans are only applicable to those people who are into commercial business transportation and own commercial vehicles. Most well known private banks provide financial services. Banks not only provide loans on new vehicles but also on previously owned vehicles. Following factors should be kept in mind before availing commercial loans:
Make sure you match the eligibility criteria jotted down by the banks. To apply for commercial loans, you must have a business that is associated with commercial vehicles. If you’re not experienced in this field and willing to buy a commercial vehicle for the first time, then also you are eligible to apply for this loan.
The interest rates charged vary from bank to bank. Also, the interest rates fluctuate on the basis of the background of the business and its owner. They check the entire background of the individual, his past records, his bank account statements and also the type of vehicle owned by him. Depending on the value, the interest rates vary.
The duration of the loan varies; i.e. you can avail the loan on yearly basis or monthly basis. Minimum tenure is six months. Generally, there are several clauses put forward by the loan providers. Depending on the expansion of your business, the amount varies. The minimum given to any company is one lakh and the maximum is five crores.
Once you've applied for the loan. The next important thing is to submit your documents. Important documents include your ID proof, residential proof, passport, and photocopies of last six months' bank statement. One needs to notify if they have taken any loan previously. The applicants need to provide details and balance sheets of their past business turnover regarding profits and losses. Loan providers may also ask for your vehicle purchase details.
Once you’ve submitted all the documents, it will take at least one week for your loan approval; however, the time period may vary at times depending on the provider.
The loan borrower needs to clear the loan amount on monthly basis. Apart from the notified amount, the borrower should also pay the rate of interest which is applied to the loan policies.
Points to remember before buying a commercial vehicle
Choosing the correct provider that would provide finance for commercial vehicles is as important as choosing the correct vehicle for yourself and your business. Remember the following points before buying a commercial vehicle.
Note down the items that are to be transported. Choose what kind of vehicles that would be able to take the load of your supplies and transport them from one place to another.
How many commercial vehicles do you need so that your goods reach the sellers and warehouses on time? Based on the order size on daily basis, the situation may arise where you would need more than one vehicle.
Think of the luxury that you’re providing to your employees and also to your passengers in case of buses. Your bus should provide all sorts of luxury and benefits.
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