Commercial vehicle loans are meant to provide funds to borrowers for the purchase of vehicles that are to be used for commercial purposes. You can easily use an online commercial vehicle loan EMI calculator to plan the repayment for this type of loan.
Types of commercial vehicle loans
Commercial vehicle loans can be availed for diverse types of vehicles used for distinctive activities and serving varying purposes. For example, logistics companies may use vans to make deliveries, while farmers commonly use tractors to help improve agriculture efficiency.
Broadly speaking, there are two types of loans available for the purchase of commercial vehicles:
New commercial vehicle loan: This loan is provided to borrowers who plan to buy a brand-new vehicle or a new fleet for their business. Banks and non-banking financial companies usually provide up to 100% funding on the vehicle's ex-showroom price.
Old commercial vehicle loan: Such a loan is meant to purchase any kind of pre-owned or used commercial vehicle. As pre-owned vehicles are cheaper than brand-new ones, the loan amount you would have to borrow and invariably the EMIs you’ll pay would be lower if you opt for a used vehicle instead of a new one.
Whether you plan to buy a new or pre-owned vehicle, you can always use a commercial vehicle EMI calculator to help you plan its repayment.
Advantages of commercial vehicle loan
Commercial vehicle loans are among the most preferred options for acquiring funding among borrowers who either intend to purchase their very first commercial vehicle or plan to add a new vehicle to their existing fleet. Usually, these loans have a flexible repayment tenure that can be up to 72 months. This ensures that the borrowers do not have to pay off their EMIs in a hurry, nor would they be burdened with a too-high EMI amount. The use of commercial vehicle loans is also pretty flexible. Depending on your specific needs, you may use these loans to buy heavy vehicles like trucks, buses, and tractors or opt for small and light vehicles like vans. You can always use a motor vehicle loan calculator to compare multiple loan options and subsequently apply for the one that meets your requirements and is budget-friendly enough.