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Availing a Light Commercial Vehicle Loan? Keep These Things in Mind
Posted on Tuesday, April 5th, 2022 | By IndusInd Bank
If you’re planning to buy a light commercial vehicle, the most feasible way of payment could be a Light Commercial Vehicle Loan.
Commercial vehicles are costlier than personal ones. However, a commercial vehicle is a necessity for a lot of business owners. But most of the buyers worry about financing a commercial vehicle. This is where a light commercial vehicle loan can help you out. In fact, most buyers or organizations prefer to finance their purchases through a loan. Availing of a loan also helps you plan your finances better. If you’re a business owner, it will help you ensure smooth business operations. Here are a few pointers that can come in handy if you apply for a commercial vehicle loan.
Approval Process
Once you submit the required documents, the bank can take up to a week to get your loan approved. However, the time taken to sanction commercial vehicle loans can vary depending on the bank/lender.
Usually, banks disburse loans directly to the vehicle dealer rather than the buyer. IndusInd Bank, one of India’s leading banks, offers affordable light commercial vehicle loans. With quicker approval (within just 48 hours) and flexible repayments, this loan is preferable by all.
Loan Duration
The tenure of the loan depends on the borrower’s requirements. Banks ideally fund up to 100% of the chassis (engine, driveshaft, suspension, etc.). At the same time, the funding for the body can be extended based on prior experience or any unique addition. In most cases, the loan duration ranges from six to sixty months. For instance, IndusInd Bank provides a flexible repayment tenure of several months.
Interest Rates
Interest rates on commercial vehicle loans again vary across banks or lenders. The interest rate also depends on other factors such as the borrower’s credit history, business turnover, number of vehicles owned by the loan applicant, etc. IndusInd Bank offers relatively lower interest rates on light commercial vehicle loans.
Processing Charges
Processing charges are a one-time, non-refundable fee levied by banks for every loan processed and sanctioned. These include processing fees, vehicle valuation charges, stamp duty, etc.
Repayment
The easiest way to repay commercial vehicle loans is through monthly EMIs. If you wish to prepay your loan, you will incur a penalty of the outstanding loan amount.
Conclusion
If you keep these pointers in mind, you are all set to apply for a light commercial vehicle loan. However, make sure you get in touch with a professional from a bank to understand all the necessary details you need to know before applying for a light commercial vehicle loan. You can easily get in touch with an expert from IndusInd Bank and clarify your doubts. To find out more about light commercial vehicle loans, visit IndusInd Bank.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
