How to Check Commercial Vehicle Loan Eligibility Online?

A commercial vehicle loan is usually granted to self-employed borrowers, trusts, partnerships, organisations and so forth to purchase cars for business or commercial purposes. The transportation industry offers a variety of vehicle loan options for individuals. Light and compact commercial vehicles can be purchased with a commercial vehicle loan, including vans, lorries, dump trucks and other vehicles.

A commercial loan for the vehicle is the preferred option for borrowers looking to purchase their first commercial vehicle or add to their existing fleet of commercial vehicles because of its multiple benefits.

Did you know?

Axis bank offers the most competitive interest rates for commercial vehicle and construction equipment loans to give you the maximum benefits.

What Is a Commercial Vehicle Finance?

A commercial vehicle loan is a type of loan that allows individuals and businesses to purchase commercial vehicles. Although comparable to a car loan, a car loan is intended for private cars only. Commercial vehicle loans fund commercial vehicle purchases. To arrange this type of loan repayment, use the EMI calculator for commercial vehicle loans.

Commercial vehicle loans are primarily used to fund the purchase of vehicles used professionally or commercially. Major domestic lenders such as ICICI Bank, YES Bank, Indiainfoline and Mahindra Finance offer these loans at low-interest rates. Applying for a company car loan is simple and quick, requiring little paperwork.

Also Read: Know About the GST on Motor Cars and Light Motor Vehicles

Commercial Vehicle Loans: Advantages and Disadvantages

• If your profile meets the criteria set by the lender, you may be eligible for a low-interest rate commercial mortgage. 
• Company car loans are quick to process and easy to document and approve. 
• Most of India's major banks offer low-interest rates and unsecured commercial vehicle loans. 
• Some banks appoint a personal account manager from the beginning to the end of the car purchasing process. They will process all loan documents and resolve any issues that arise. 
• The loan will be paid in seven days when the relevant documents are submitted.

The Commercial Vehicle Loan Benefits

The following are a number of the outstanding benefits of loans:

• Flexible Payback Terms

Typically, an enterprise vehicle mortgage has a compensation period of as much as five years. This ensures debtors a low EMI amount, letting them repay their EMIs without immoderate economic strain.

• Whether you're a character borrower or a fleet owner, you could gather financing for some of the automobiles that will help you construct your enterprise, with tippers, trucks, buses, trailers, tankers and different small and mild industrial automobiles.
• The utility technique for an enterprise car mortgage is easy, quick and convenient. After receiving all relevant papers, banks generally take four to five days to execute a brand new or used car mortgage utility.
• Paperwork is easy-industrial car loans that have an easy and speedy documentation technique. Users can quickly add all required files online while not visiting the bank.
• In contrast to different styles of loans, commercial car loans now no longer necessitate the usage of a credit score. Borrowers with an awful credit score, or maybe no credit score, can get an industrial car mortgage.

• Designed to Fulfil Quite a Few Purposes

The mortgage schemes are designed to fulfil a debtors' needs, along with new and used automobile financing, debt consolidation and refinancing of loans/automobiles for running capital.

Every industrial car mortgage plan is customised in step with the car type, mortgage period and economic talents of every character borrower to fulfill the particular necessities of the customers.

How to Check Car Loan Eligibility?

This eligibility criteria is classified into two categories. They are as follows:

In the case of new commercial vehicles

• The hired borrower must be a full-time employee for at least two years, and the self-employed borrower must have at least two years of business experience.
• Limited liability companies, partnerships, trusts, companies and organisations must operate for at least two years.
• Fleet operators and other existing vehicle owners must provide proof of ownership of one or two commercial vehicles for one to three years.
• Limited liability companies, partnerships, trusts and companies are examples of Limited Liability Companies.
• Companies are required to submit audited annual accounts for the last two years.
• Individuals, first-time buyers, and fleet operators/owners may require an internal/external guarantor.
• You must have lived in your current residence for at least two years.

In the case of ancient commercial vehicles

In addition to the basic requirements, borrowers looking for a company car loan for an old car must meet the following criteria: 

• The client requires 3-5 years of relevant experience, depending on the particular profile. 
• You should at least own two vehicles for at least one year. 
• Commercial vehicles with a repayment period of one year or more.

How Do Commercial Car Loans Work?

Car loans work by giving you a lump sum of cash to purchase a vehicle. The car is then yours to drive while making monthly loan payments (with interest) over time. The lender maintains the title to the car until you fully repay the loan and can repossess it if you fall behind on payments.

How to Calculate Car Loan Eligibility?

When applying for a new car loan, you must meet certain eligibility criteria. These criteria may vary from lender to lender. Let's take a look at some of the major lender requirements:

Eligibility for Car Loans (Axis Bank)

1. Individuals with a salary. 
2. You must be between the ages of 21 and 70 for the loan duration. 
3. The minimum annual income is ₹2.4 lakhs. 
4. You must be employed for at least one year.

Other considerations:

You must be able to submit Form 16 and the latest payslip to qualify for your income.

Who Can Get a Commercial Car Loan?

• Applicants who have had a payroll account at Axis Bank in the last three months can apply. 
• Full-time employees of state / Central government / PSU / reputable universities/schools, and full-time employees of multinationals, public companies and Limited Liability Companies.
• Individuals who work for themselves.
• At loan maturity, you must be at least 18 years old and no more than 75 years old.
• ₹1.8 lakhs – ₹2 lakhs as a minimum annual income.
• You must have worked in the same industry for at least three years.
• To show income eligibility, you must be able to present the most recent Income Tax Returns.

SBI Bank Eligibility for a Car Loan

Eligibility for ICICI Bank Car Loans

You can use the ICICI Bank's 'Car Loan Eligibility Calculator' on their official website to determine your eligibility for a car loan. To assess your eligibility, you'll need to provide information like your phone number, place of residence, type of job, automobile model you want to buy, ex-showroom price, etc.

Eligibility for a Car Loan from HDFC Bank

The following individuals/entities are eligible for an HDFC Bank car loan:

• Individuals who earn a living.
• Sole proprietors who work for themselves.
• Individuals who are self-employed or professionals who work for a partnership firm.
• Individuals/professionals who work for themselves and operate their businesses.
• Directors and self-employed individuals in public-limited corporations.

Documentation for a Commercial Car Loan

• A fully completed application form with a photograph is attached.
• Two passport-sized photos.
• Payment by cheque for the processing cost.
• Aadhaar Card/PAN Card/ID Voter's Card/Driving Licence/Passport as evidence of age (Any one).
• Proof of your identity - Aadhaar Card/Voter Identification Card/Licence/Passport (Any one).
• Proof of Residence - Rental agreement/voter identification card/passport/ration card/telephone bill or electric bill/trade licence/sales tax certificate (Any one).
• Proof of Signature Verification - For government personnel, a driver's licence, a PAN card, a registered sale deed or a government ID card (Any one).
• Salary slips from the previous three months.
• Form No. 16 is the most recent six-month bank statement.
• ITR for the previous two years.
• Photocopy of official identification.

Interest Rates on Commercial Vehicle Loans

Commercial vehicle interest rates differ from one bank to the next. The lender determines the amount based on the customer and car category. The bank/lending institution confirms the final rate of interest to be charged for that profile after assessing the papers and profile of each borrower. It typically ranges from 10% to 15% per year. The following are the interest rates on commercial vehicle loans issued by some of the most well-known banks and financial institutions:

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Calculate Car Loan Eligibility

• The monthly income should be at least ₹10,000.
• Yearly tenure should be at least 12 months.
• In percentage terms, the interest rate should be at least 1%.
• Other Monthly EMIs: The minimum amount should be ₹50,000.

Several factors determine eligibility for a car loan

• Value of the car
• Credit score
• Relationship with the lender
• Monthly income

Conclusion

A commercial vehicle loan is usually granted to self-employed borrowers, trusts, partnerships, organisations and so forth to purchase cars for business or commercial purposes. The transportation industry offers a variety of vehicle loan options for individuals. Light and compact commercial vehicles can be purchased with a commercial vehicle loan, including vans, lorries, dump trucks and other vehicles.
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