A commercial vehicle refers to a vehicle that is used for business purposes by self-employed individuals, organizations, or firms. Loans taken to finance such vehicles are known as commercial vehicle loans.
New Commercial Vehicle Loan
As the name suggests,
this loan is taken out to purchase or finance a new commercial vehicle for your
business use. The vehicle can be of any type or size. The vehicle you
purchase acts as the collateral helping you to procure the loan without any
other downpayment.
Pre-owned Commercial Vehicle Loan
A pre-owned commercial
vehicle loan is taken for purchasing a second-hand or used commercial vehicle.
You can opt for this if you have chosen a second-hand vehicle. Vehicles up to 15
years old can be purchased with such loans. This can’t be a zero downpayment
commercial vehicle loan as banks only finance up to 90% of the total price if
it's a pre-owned vehicle.
Top-Up Loan
You can opt for a
top-up loan on your existing commercial vehicle loan. Banks may approve this if
you have a good track record and CIBIL score. The money obtained can
be used as working capital. You have a higher chance of getting a top-up loan
approved by the same bank that you have your commercial vehicle loan with.
Balance Transfer
This refers to
transferring your existing loan to a new lender. Often a new lender may offer
you lower interest rates, or better terms and conditions which are worth taking
advantage of.
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