18 May, 2023
As a business owner, you must apply your capital to keep operations running as smoothly as possible. Thus, you must allot funds to purchase the equipment and machinery necessary to run your operations. For certain businesses, this means acquiring vehicles, whether as a key element of the service offered or facilitating the transport of goods. However, purchasing vehicles for commercial purposes can be an expensive affair. To that end, you can always seek financial assistance through a Commercial Vehicle Loan.
What is a Commercial Vehicle Loan?
Commercial Vehicle Finance refers to a range of term loans that can help you purchase a vehicle when your business needs it. Since it is a term loan, you must repay the borrowed amount across a tenure.
However, you can now pay off the borrowed amount via Equated Monthly Instalments (EMIs) to make repayment easier. These monthly payments include the principal due along with the interest amount. The interest charged will depend upon the rate the financial institution or bank decides. If you are wondering how a Commercial Vehicle Loan would benefit you, continue reading.
Benefits of Opting for a Commercial Vehicle Loan
When you apply for a Commercial Vehicle Loan, you can enjoy the following benefits:
High-Value Amounts
Depending on the exact nature of your business, you might require single or multiple units of commercial vehicles. Such purchases can be capital-intensive and put a strain on your finances. This is where a Commercial Vehicle Loan can be of immense help. When applying for such a loan, you can seek high-value amounts that cover almost the entire vehicle cost. Thus, you do not have to bear the entire cost of the purchase upfront and can pay off the loan in smaller amounts over time.
Choice of Vehicle
Another advantage of picking the right Commercial Vehicle Loan is that you get to choose the exact automobile you require. For instance, HDFC Bank lets you pick if you want to buy a new or used/second-hand vehicle. You can also pick the vehicle category, including buses, trucks, tankers, etc. You can pick the vehicle best aligned with your business needs, from the manufacturer to the model and make.
Also Read: How to Apply for Commercial Vehicle Loan
Attractive Interest Rates
While applying for any loan, it is crucial to examine the interest rates. The interest rates dictate a portion of the amount you will have to pay each month. However, most banks and financial institutions offer Commercial Vehicle Loan at attractive interest rates to make life easier for business owners. Such interest rates make the EMIs due each month easy to pay and repayment a more manageable process.
Easy Repayment
As mentioned above, EMIs have paved the way for smoothening out the repayment process. Now you can use Loan EMI Calculators and determine the monthly amount due before applying for loans. You can also arrange your monthly expenses to pay your EMIs on time. Calculating the Commercial Vehicle Loan amount and allowing borrowers to repay it in smaller instalments reduces any financial strain and gives your much-needed breathing room.
Quick Processing
Applying for a Commercial Vehicle Loan is a hassle-free affair. Most banks and financial institutions ensure that the application process is straightforward. Plus, banks take relatively less time to process your application and decide whether or not your loan application has been approved. Thus, if approved, the funds are also disbursed fairly quickly.
If the advantages of a Commercial Vehicle Loan sound appealing, then you can apply for one with HDFC Bank. Our Commercial Vehicle Financing allows you to choose from a range of loans to purchase a vehicle of your choice. With attractive interest rates, flexible tenure and easy EMIs, our Commercial Vehicle Loan is the perfect choice to help you grow your business.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Commercial Vehicle Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.