commercial vehicle loan

8 Things To Know About Commercial Vehicle Loan In India

How to get commercial vehicle loans

Are you planning to buy a vehicle for commercial purposes? If yes, then this blog can be helpful to you in many ways. We know buying a commercial vehicle is a huge investment for which you might need financial assistance. Hence, to help you out, in this blog, we will talk about how to get a commercial vehicle loan.

When Mr Singh wanted to expand his transport business, he thought of adding vehicles to his existing fleet. However, the lack of sufficient funds was proving to be a hindering factor. He came across an advertisement for commercial vehicle loans which detailed the entire process of online application too. Mr Singh immediately got his documents together and applied for a loan. After completing the required formalities, he soon got the funds to help him realise his business goals.  

If, like Mr Singh, you too are wondering how to get a commercial vehicle loan, then stick around for a while, and you will have all the necessary information in place. 

How To Get A Commercial Vehicle Loan in India?

To begin with, you need to gather sound knowledge and information about commercial vehicle loans so that you can make an informed choice. You should get in touch with banks and loan providers to compare their interest rates and then finalise one, depending on your requirements. Don’t forget to keep the following pointers in mind:

  1. To get a commercial vehicle loan, you can either visit a bank or apply online on their website. Both procedures are extremely easy and hassle-free to help you sail through smoothly. However, the provision of commercial vehicle loans online apply makes it a tad too simple since you can apply from any part of the world at any time of the day. 

  2. Once you finalise the loan lender, thoroughly understand their process. Pick up their application form and fill in your personal information correctly. Provide them with the required documents along with the form to initiate the process. Once they verify your ID proofs and personal details, you will hear from the bank on the status of your application. 

  3. Anyone can apply for a commercial vehicle loan, whether a business organisation or a public/private company. It is mostly opted for by transport service providers or companies involved in the logistics sector.

  4. The interest rates for commercial vehicle loans will vary and depend on the bank you choose to go with. Usually, it falls within the range of 10% to 17%. Moreover, there are certain other factors that a bank considers before finalising the offered interest rate. Some of these are – your profile, credit score, business turnover, number of vehicles already owned, etc. Once the bank reviews your application, they update you with the chargeable rate of interest. 

  5. The rate of interest will also depend on whether you are going to buy a used/pre-owned vehicle or a new vehicle. 

  6. If your interest rate is high, your payable EMI is also likely to be high. You must calculate your EMI beforehand using any EMI calculator. Scores of EMI calculators are available online that can give you an estimate of the amount you need to pay every month. This will help you plan your finances better.

  7. The tenure/period of the loan will also affect the EMI. The longer the duration, the lower the EMI. However, this also means that you have to pay extra interest. 

  8. Ask your bank about additional charges that may be applicable. Sometimes, the bank levies an extra amount for processing and documentation purposes. 

What Are The Documents Required For A Commercial Vehicle Loan? 

It is always advisable to reach out to your bank representative and ask them what are the documents required for a commercial vehicle loan. The bank representative will help you with the precise details and guide you through the process. As a rule of thumb, you can keep the following documents handy to apply for a commercial vehicle loan:

  • KYC documents such as a PAN card, passport, aadhar card, etc

  • An address proof, again, an Aadhar card or passport, should suffice

  • A vehicle registration certificate

  • IT return files for the last two years

  • Proof of business turnover 

  • Bank statement for the last 6 months

  • Record of existing/past loans, if any

  • Record of existing vehicles, if any

  • Your Photograph

  • Cheque/Demand Draft to pay the fees

You can provide the bank with photocopies of the required documents. In the case of commercial vehicle loan online apply, scanned copies of the documents should be sufficient. 


There are a number of banks offering hassle-free, simplified commercial vehicle loans. While some are known for their lower interest rates, others give the option of shorter tenures. You need to conduct research in the market to finalise one that suits your needs the best. 

We can conclude by saying that a commercial vehicle loan can be a game changer for your transport and logistics business. Having enough money to support you, you can invest more in your business and realise your dreams. All you have to do is to narrow down one that fulfils your requirements. In case you are still wondering how to get a commercial vehicle loan, you can contact team Vahak for their assistance. With expert insights into the field, they can steer you through the entire process. 

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