Important things you should know about Commercial Vehicle loan
Category : commercial vehicle loan
We now have often heard about home loans, car loans and personal loans. Most of us also comprehend the motive which these loans serve. Nonetheless, only some of us can be mindful of commercial loans. Let’s try to comprehend the cause of these loans, documentation system and who can avail them.
Commercial vehicle loans are often taken by way of individual, partnership corporations, proprietorship companies, HUF (Hindu Undivided family), trusts, societies, self-employed, businessmen and personal and public limited organizations for his or her financing desires for owning and running commercial vehicles.
The borrowers of those loans are quite often engaged in the trade of transportation. Commercial Vehicle loan options are on hand for buses, tippers, transit mixers or any other heavy, mild or small commercial vehicle. A commercial vehicle loan can be taken for a variety of commercial vehicles, which may be used at different locations.
Banks such as HDFC financial institution, ICICI financial institution, DCB bank and Yes bank among others provide such loans. Also NBFCs (non banking financial companies) like Reliance industrial Finance and Fullerton India private loans.
While loans are sanctioned for the purchase of a new commercial vehicle, banks additionally offer loans for pre-owned vehicles. Borrowers may additionally avail of a prime up on existing loans subject to conditions.
The borrower—who wishes to avail of a Commercial vehicle loan has to fill within the application form and provide the necessary documents. The documents include proof of address (passport, ration card, voters ID), proof of experience in the relevant area, track record of past loans (if availed) and 6 months bank statements of the last 6 months.
The borrowers would also have to publish two years income tax returns, audited balance sheets and profit & loss account statements. List of owned vehicles along with the copies of RC (registration certificate) books.
Some banks may also ask for transportation contracts for higher quantum of funding. In some circumstances, banks may ask also for a personal guarantor.