Truck loans in India fall under a commercial vehicle loan category where any Indian resident can get a loan for commercial vehicles or public transport systems such as buses, trucks, tankers, taxis, or any other type of commercial vehicle.
To apply for a truck loan in India, a person must be eligible for the criteria according to the firm or Bank they are applying for their truck loan.
Farmerly in India mostly apply for commercial vehicle loans since they have to own a tractor for farming and transporting vegetables and fruits.
Transport agencies and import-export businesses will most likely apply for a truck loan in India to deliver goods and things from one place to another.
They have to show their income and eligibility proof to the banks or firms to apply for a commercial vehicle loan in India. And make sure they meet the criteria to apply for a loan so that Bank or firm cross-check all the details and verify that they are eligible to get a loan for the commercial vehicle.
How to apply for a truck loan as an Individual truck driver?
You can easily apply for a truck loan in India as an individual truck driver. When it comes to loans whether for trucks or bus need to verify the documents but for planning a vacation people invest in a bus conversion too. You need to show your income proof and provide the bank or firm with your KYC documents to show that you are eligible for a commercial vehicle loan.
Several banks and firms give special offers to the individual truck owner to avoid extra financial burden for the loan. So do your own research, find out which bank or firm is more suitable for your situation, and apply for your truck loan in India. The process of getting a commercial vehicle loan can be done both ways online and offline.
Application Process:
- Do your own research to find out which bank or firm is ideal according to your situation.
- Ensure you check your eligibility for a commercial vehicle loan.
- Now, Fill out the commercial vehicle loan form; it can be done both ways online and offline.
- Prepare for the Required Documents
- Please be patient while the lender reviews your paperwork and profile.
- Learn about loan Disbursal
Types of Commercial Vehicle Loans:
Any business vehicle, from a cab to a truck, can be purchased with a commercial loan. A commercial loan is available by online installment loans easily too. However, commercial vehicle loans can be roughly divided into the following categories based on the model you finance.
1. New Commercial Vehicle loan:
Up to 100 percent financing is available on the chassis with this sort of loan for new commercial vehicles. Some lending institutions may additionally give additional funding for the vehicle’s cab and other components as well.
2. Used Commercial Vehicle loan:
Second-hand business vehicles up to 15 years old are eligible for financing. The majority of lenders are willing to fund up to 90% of the car’s market value.
3. Refinancing Commercial Vehicles:
Depending on the lender, commercial vehicle loan interest rates can be rather different. Depending on your financial situation, you may be able to get reduced interest rates on an existing loan, or you may be able to raise the amount of money you may borrow for a vehicle based on your eligibility.
Eligibility Criteria:
For New Vehicles:
- Salaried individuals need to give proof of more than 2 years of employment stability.
- Self-employed need to give more than 2 years of business experience in their industry.
- There must have been at least two years of existence in the form of a private/public limited company, partnership firm, association, trust, or institution.
- Existing vehicle owners/fleet operators: proof of ownership of at least 1-2 commercial vehicles over the past 1-3 years.
- Stability in the borrower’s home for at least two years (borrowers with less stability may be subject to extra criteria).
- First-time buyers and fleet owners may require guarantors.
For Old Vehicles:
- At least three to five years of professional experience that is relevant to the position. (based on individual profile).
- Ownership of at least two commercial cars for at least a year is required.
- A payback history of at least one year is required for business automobiles.
Required Documents:
The following types of documentation will be required if you are looking for a commercial loan:
- Apply with a photograph after filling out the form.
- 2 Passport size Photos
- A Cheque for the Processing fee
- KYC Documents
- Income Proof
- Experience Proof with relevant documentation based on profile
Depending on the profile of the application and the requirements of the lender, additional documents may be requested, including but not limited to:
- There must be proof of existing vehicle ownership.
- information on the vehicle, such as specifications and an assessment of its value
- A copy of the vehicle’s registration and insurance.
- Details of a fleet (for fleet owners)
- Trade References
- Ownership of a piece of real estate property (for farmers)
- Deed of partnership, declaration of proprietorship, board decision, and audited financial statements for the previous two years (for institutions such as trusts, societies, private/limited companies, and partnership businesses) are all required in the formation of a partnership.
KYC Documentation:
KYC and income evidence allowed for business vehicle financing loan applications include the following:
- Aadhaar card, PAN card, voter’s ID, passport, or driving license are acceptable forms of evidence of age.
- You can use any of the following forms of identification: Aadhaar card, voter ID, passport, driving license, etc.
- Rent agreement, passport, voter’s ID, ration card, utility bill, sales tax certificate, and trade license are all acceptable forms of identification as proof of residency.
- Any one of the following may be used to verify the signatory’s identity: driver’s license, PAN card, ID card issued by the federal government, or a legally recorded sale deed.
There are various banks and firms that are giving loans to the eligible individual who wants commercial vehicle loans. Which includes:
- Bank/Firm
- Mahindra finance
- Hdb Financial Services
- IndusInd Bank
- HDFC Bank
- Yes Bank
- Idfcfirst Bank
- Axis Bank
- Kotak Bank
You need to do your own research to get an idea about which firm or bank is more suitable according to your situation, and then you can apply for a truck loan in India.
You can apply for your commercial vehicle loan both online and offline.
To apply offline for a truck loan in India, go to the nearby firm or bank and ask for the commercial vehicle loan application form, and the firm’s authorities will assist you.
Author Bio:
Vijay Rathod is a Content Writer, blogger, and content analyst. He is writing about construction, real estate, heavy equipment, and commercial vehicle loans. He did his post-graduation in journalism. He loves to learn new things by exploring the content.
