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What is a Commercial Vehicle Loan?

A commercial vehicle loan, also known as a business vehicle loan, is a loan provided to self-employed individuals, business entities, or enterprises for the purchase of commercial vehicles that are to be used for business/commercial purposes, like the transportation of goods or passengers. Any individual or company that wishes to purchase a vehicle for their business can do so without burning a hole in their pocket with a commercial vehicle loan from Muthoot Finance. When you avail a commercial vehicle loan from Muthoot Finance, you get benefits like:

Quick disbursals
Competitive interest rates
Easy documentation
Quick processing of applications
Customised loan tenure and repayment options

Vehicles You Can Purchase with Business Vehicle Loans by Muthoot Finance

At Muthoot, we believe in offering our customers the financial support they need to fulfil all their dreams and aspirations. To help you take your business to the next level, Muthoot Finance offers tailor-made commercial vehicle loan options for the purchase of vehicles, including but not limited to:

Trucks
Tractors
Intracity buses
Intercity buses
School buses
Tankers
Tempos

Tippers
Trailers
Transport Mixers
Cranes
Multi Utility Vehicles
Other construction-related vehicles
Small and medium commercial and passenger vehicles

Types of Business Vehicle Loans Available at Muthoot Finance

Muthoot Finance offers a range of commercial vehicle loans with competitive interest rates. These loans can be categorised as follows:

Loans for New Commercial Vehicles: Borrowers who wish to purchase a new commercial vehicle can avail up to 100% of the value of the vehicle as a loan.
Loans for Used Commercial Vehicles: Borrowers who want to purchase a used commercial vehicle can apply for a commercial vehicle loan for up to 90% of the total value of the vehicle, based on their overall eligibility.
Commercial Vehicle Refinancing: Muthoot Finance also offers refinancing loans that can be availed to pay off an existing vehicle loan. A refinancing loan is chosen when an applicant finds a loan option that has a lower interest rate. The loan can be taken for the remainder of the loan tenure of the existing loan, where the borrowed money clears the existing debt, and the applicant can pay a reduced EMI for the remaining tenure.

Eligibility Criteria for Availing Business Vehicle Loans

Who Can Apply: The following legal entities are eligible to apply for a commercial vehicle loan at Muthoot Finance:
- Individuals
- Partnership Firms
- Public and Private Companies
- Proprietorship Firms
- Hindu Undivided Families
Age: This criterion is only applicable for individuals. The borrower should be between the ages of 21 years and 65 years.
Individuals who want to avail business vehicle loans should have a driving licence with minimum 12 months of driving experience.
Business enterprises should at least have a one-year track record of existence and should own at least one vehicle already.

Features of the Commercial Vehicle Loan by Muthoot Finance

From buying used commercial vehicles to new ones, Muthoot Finance offers a range of finance solutions for businesses and self-employed individuals. With varying loan tenures options, business vehicle loans by Muthoot Finance offer the following:

Flexible Tenure: Customers can customise the repayment tenure in accordance with their financial situation. The loan tenure offered by Muthoot Finance for a commercial vehicle loan ranges from 1 to 5 years.
Option for Early Repayment: Muthoot offers an early foreclosure option to its customers with a nominal foreclosure fee. During the loan tenure, if a borrower has a sudden inflow of cash and wished to repay the loan earlier than was initially negotiated, they can choose to do so by paying a small extra amount as penalty.
Restructuring the Loan: At Muthoot Finance, we believe in customer satisfaction. That is why we allow our customers to restructure their commercial vehicle loan during the tenure, taking into account their latest circumstances.
High Loan Amounts: With Muthoot Finance, you can avail up to 100% financing for the new vehicle you wish to purchase, depending on your credit profile.

Factors that Affect the Interest Rate and Quantum of the Loan

Factors that have an effect on the rate of interest for the commercial vehicle loan include:

Credit Rating: The credit score of the individual or organisation applying for a loan impacts not only the interest rate offered but also the total LTV (Loan-to-Value) ratio, which defines the percentage of the total value of the vehicle that an applicant is eligible to avail as a loan. So, it is extremely important that borrowers always make a conscious effort to maintain a good credit rating. Timely repayment of loan EMIs and credit card bills can help maintain a high credit score.
The Age of the Vehicle: The age of the vehicle, in case you wish to purchase a used vehicle, also impacts the quantum of the loan and the rate of interest that would be charged.
The Make and Model: The amount that will be disbursed as a loan and the interest rate that will be applied on it also depend on the vehicle model being purchased; whether it is an older model, if the vehicle is in accordance with the latest safety guidelines, etc. The loan tenure being offered may also vary with the same.

Documentation for a Commercial Vehicle Loan

The following documentation is required for availing a commercial vehicle loan:

For Individuals:
- Identity proof: Aadhar Card, PAN Card, Passport, Driving Licence, or Voter ID.
- Address Proof: Aadhar Card, Passport, Driving Licence, or Voter ID, whichever includes the applicant’s address.
- Income Proof: Documents that reflect the applicant’s ability to repay the loan, including salary slips for the last 3 month (for salaried individuals), bank statements for the last 6 months, Income Tax Returns for the last 3 years.
Entities Other than Individuals: If the applicant is not an individual, they would be required to submit the KYC documents for the legal entity and its Income Tax Returns for the last 3 years.

Visit the Nearest Branch: Walk into one of our numerous Muthoot Finance branches across India, fill in the application for a commercial vehicle loan and submit the same along with all the required documents.
Online: You can fill up the application form for a commercial vehicle loan and upload the necessary documents online on the Muthoot Finance website.

The most trusted name when it comes to financial services, Muthoot Finance, with its competitive interest rates and quick disbursals for commercial vehicle loans, can help make your dreams come true.

Who Can Apply: The following legal entities are eligible to apply for a commercial vehicle loan at Muthoot Finance:
- Individuals
- Partnership Firms
- Public and Private Companies
- Proprietorship Firms
- Hindu Undivided Families
Age: This criterion is only applicable for individuals. The borrower should be between the ages of 21 years and 65 years.
Individuals who want to avail business vehicle loans should have a driving licence with minimum 12 months of driving experience.
Business enterprises should at least have a one-year track record of existence and should own at least one vehicle already.