Normally, trucks, buses, vans, trailers and heavy construction equipments are used only for commercial purposes. Therefore, these vehicles are generally termed as commercial vehicles in the market. However, these vehicles are very expensive and cannot be easily afforded by common people. So often the interested buyers need finance for commercial vehicles so that they can pay the hefty cost prices for these automobiles. There are many financial organizations that lend money to people for buying such motor vehicles, but only on providing the necessary valid documents.
Primary Features of The Finance for Commercial Vehicles
- Offer of Full Finance – Many financial organizations offer up to 100% finance for commercial vehicles, which is applicable for both new and old vehicles. Thus, this feature is very useful for the borrowers, who otherwise find very difficult to buy such expensive automobiles for starting new businesses.
- Comfortable Loan Tenure – The tenure of the commercial vehicle loans usually extends up to 60 months, during which the borrowers need to repay their loans with interests. However, the moratorium period of these loans are 60 days, during which the borrowers need not pay the decided EMIs. The loan tenure for the old commercial vehicles may not be more than 3 years, depending on the age of the concerned vehicles.
- Easy Documentation for Loans – Usually, very simple documentation process is required for granting commercial vehicle loans. Only a few mandatory documents should be submitted as the identity proof of the borrower, his address proof and income proof. If all the essential documents are given, the loan application is processed and granted within a few days only.
- Affordable Interest Rates – The interest rates of the commercial vehicle loans are usually available at competitive rates, which make these loans more affordable to the common people. Many reputed organizations offer interest rates starting from 12% per annum, making finance for commercial vehicles lucrative for the borrowers.
- Customized Loans – All the commercial vehicle loans for the new vehicles are customized according to the needs of the borrowers. These financing facilities are extremely flexible for the borrowers, so they do not find these loans to be too burdensome.
Main Documents Needed to Grant Finance for Commercial Vehicles
- Photo ID Proof – Personal identity proof is mandatory for every person while seeking finance for commercial vehicles. This valid identity proof should bear a recognizable photograph of the loan seeker, along with his name and date of birth mentioned on it. Usually, PAN card, passport, driving license, voter identity card, bank passbook, official identity card of recognised organization is considered as approved ID proof documents in all financial organizations.
- Address Proof – Similarly, a valid address proof document is required to verify the given address of the loan seeker. The current address should be mentioned in the given address proof so that no confusion arises in this matter later. Generally, passport, electricity or any other utility bill, driving license, voter identity card, bank account statement, credit card statement and lease agreement are known to be the valid address proofs for seeking commercial vehicle loans.
- Income Proof – The loan seeker should prove that he has got the financial capability to repay the amount of loan asked by him. So, it is essential that he provides some valid proof of his regular monthly or yearly income. Hence, bank account statement, salary slip, and Income Tax return file are also very important documents to get finance for commercial vehicles.
Now, since you know about the required documents, it is easier for the new entrepreneurs to seek finance for commercial vehicles that will solve their problems of transportation of goods. However, some financial organizations may demand other extra documents as well, as per the rules of those companies.