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Commercial Vehicle Laon in India: A Brief

Commercial Vehicle Loan is a financial product which helps small businesses buy commercial vehicles for cargo and passenger transportation. Banks, non-banking financial companies (NBFCs), and other lending institutions offer these loans to help small businesses.u00a0

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Commercial Vehicle Laon in India: A Brief

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  1. Commercial Vehicle Laon in India: A Brief Commercial Vehicle Loan is a financial product which helps small businesses buy commercial vehicles for cargo and passenger transportation. Banks, non-banking financial companies (NBFCs), and other lending institutions offer these loans to help small businesses. Key Features of Commercial Vehicle Loans in India ● Loan Amount and Tenure: The loan amount for commercial vehicles can vary per the vehicle's cost, the applicant's financial profile, and the lending institution's policies. The repayment tenure typically ranges from 3 to 7 years, allowing borrowers to repay the loan in affordable instalments. ● Eligibility Criteria: Lenders consider several factors when evaluating a borrower's eligibility. The eligibility criteria include the applicant's creditworthiness, business stability, income, and financial obligations.

  2. ● Collateral Requirement: In most cases, the purchased commercial vehicle is collateral for the loan. If the borrower can’t repay loan payments, the moneylender can sell the vehicle to recover the outstanding amount. ● Interest Rates: The interest rates on commercial vehicle loan are of two types- fixed and floating. The lender's policies and the market's state affect interest rates. Interest rates may vary per the borrower's creditworthiness, loan amount, and period. ● Down Payment: A down payment is required when buying a commercial vehicle on loan. A down payment is a predetermined portion of the car's price. The down payment amount can vary as per the lending institution's policies. ● Prepayment and Foreclosure: Prepayments are permitted by some lenders, and some may allow borrowers to close the loan early. Prepayment fees, however, could be necessary in some circumstances. ● Use of Funds: Commercial vehicle loans are specifically meant to purchase vehicles used for commercial purposes. During the loan application process, borrowers are required to disclose specifics on the vehicle's planned purpose. ● Documents: Documents required of applicants include KYC records, evidence of income, bank statements, records of business registration, and records pertaining to vehicles. Conclusion Commercial vehicle loans in India are vital in supporting businesses and entrepreneurs in the transportation sector. Commercial vehicle loans provide easy access to funds for purchasing

  3. commercial vehicles to enhance the growth and development of the commercial transportation industry. They also facilitate trade and commerce across the country. For more details about commercial vehicle loans, visit TruckJunction. Thank You

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