Tips To Choose the Right Company To Apply For Commercial Vehicle Loan

• May 4, 2024May 27, 2024

Looking for a Commercial Vehicle Loan? This blog covers various aspects to help you choose the right financial Institutions to apply for a commercial vehicle loan.

Banks and financial institutions offer commercial vehicle loans specifically designed to finance the purchase of commercial vehicles, including trucks, buses, pickups, and more. These loans can be used to finance both new and used vehicles.

Commercial vehicles are commonly used by transporters and logistics companies. Since these vehicles are the lifeline for logistics, they facilitate the ease of transporting crucial equipment or materials across cities or states. 

When it comes to expanding your business, you may think of availing a commercial vehicle loan, and to help you with choosing the right company, this blog covers some of the essential aspects that you can consider going forward.

How to Select the Right Company to Apply for a Commercial Vehicle Loan

There are many finance companies in India that offer loans for the purchase of commercial vehicles. However, not all of these companies are equal in terms of their loan terms, interest rates, and other factors. To help you out with the same, Here are a few things that you should consider while searching for the right choice:

1. Interest Rates: When you are looking for a commercial vehicle loan, it is important to check the interest rates of the lender or finance company. The interest rate will have a direct impact on your monthly repayments, so you want to make sure that you are getting the best deal possible.
2. Documentation and Approval: Applying for a loan requires gathering a lot of documents to secure approval. This process often leads to lengthy wait times before you receive loan approval. You need to check which financial institution easily grants you a loan. In some cases, banks might offer you other loans on the basis of relationship and trust. As you might be their old customer.
3. Loan Tenure: Repayment terms can vary significantly from one finance company to another. Make sure to understand the repayment terms before signing on the dotted line. Some companies can offer you a loan with lesser interest rates while some might charge you higher.
4. Fees and charges: Some finance companies may charge additional fees and charges. Be sure to inquire about any hidden fees before making a decision. In the case of commercial vehicle loans, different banks may charge processing fees which usually range around 3 to 5%.
5. Loan Foreclosure: Loan foreclosure is another factor that you should consider when choosing a finance company. Some companies charge interest rates or fixed charges on loan foreclosure if you decide to settle your loan after a certain period of time.
6. Loan Finance Percentage: The downpayment is always a critical factor while buying a costly commercial vehicle but if a bank is able to grant you upto 90% loan amount then it will be a good aspect for you as you need to pay a lesser down payment. You can check with different finance companies on how much percentage of loan they can offer you and then make a wise decision.
7. The reputation of the Company and Customer Support: Considering the reputation of a finance company and its customer service records will help you to examine how well the company works in terms of its relationship with its customers. If customer service is not satisfactory then it may create a lot of hassles for you going forward.
8. Type of Finance Company: It is also important to see whether a finance company is NBFC (Non-Banking Finance Company), Small Finance Bank, or a Public Sector Financial Institutions. All these companies operate at different levels and offer different benefits so it is crucial that you select the company also considering this as a factor.

Need a dependable Light Commercial Vehicle to power your business?

Kogta Financial cuts through the clutter of traditional commercial vehicle loans with a focus on you, the customer. Our transparent process caters to all business owners, from first-time buyers to entrepreneurs. Our Commercial Vehicle Loan offers a smooth and efficient way to get the wheels turning and propel your business forward. (new or used )Visit your nearest branch and apply today.

There are many finance companies in the market operating these days and when it comes to availing loans for commercial vehicles you need to considerably choose it in a manner that can benefit you in several ways. Because people are increasingly opting to finance their purchases, they are placing greater reliance on financing to secure better and fairer deals without complications. This can be achieved by ensuring all the factors listed in this blog are considered.