Convey operators are granted loans for purchase of heavy business vehicles. The vehicles purchased are kept as collateral against loan to the bank. The bank capitals up to 75% of the outlay of the vehicle. The customer has to make down payment of some amount from his own sources. This loan is further repaid on monthly installments basis. The convey operative should have been in industry for the last 3 years.
Volvo, Eicher Motors Limited, Tata, Telco, Leyland National, Honda, Nissan, Toyota and Vauxhall Motors are some popular heavy vehicle brands. Loans are available from self-employed owner to a large business owner. Though the events for availing heavy vehicle loans are similar to individual financing relevance, the terms of the loan are quite dissimilar.
Squat interest rates with a loan reimbursement period up to 10 years are offered by a high-quality lender. Standardization of Heavy vehicle loan is usually done within 24 hours.
Fundamentals for heavy vehicle loan application have been mentioned below:
1.Borrower should be of good credit history
2.Should be a holder of valid driving license
3.Must have a fixed Income proof
4.Residential address proof
5.Few orientated documents like bank statement, phone bills, and tax returns.
Primary instant buyer can also apply for these loans. The velocity of significance depends on the period of loan, borrower's acknowledgment account, and whether the vehicle is new or not. There are basically, 2 methods of heavy vehicle financing such as Direct financing, where the borrower applies to a bank or any lending organization and Indirect financing, where the borrower avails loans from dealers.
A higher rate no interest will be charged if the borrower with bad credit history applies for loan by going through online lenders as well as traditional lending institution. The most common heavy vehicle scheme which is given by banks is truck financing scheme. Some banks norms truck loan is from margin repayment period within 36 months the 15 % of vehicles will be charged on road cost and if it is beyond 36 months and till 5 years it will be 25% of vehicles road cost. About rate of interest is that the current lending rate will be 13 % per year. If the repayment term is within 36 months the rate will be 11% annually and if the repayment term is above 36 months the rate will be 12% annually.