Commercial vehicle loans are an easy way to add new trucks, semi-trucks or vans to your commercial fleet. These loans are ideal for small and medium-scale businesses that require an automobile for diverse business purposes. There are multiple banks and NBFCs across India that offer commercial vehicle loans. You need to research and compare loan options to find a commercial vehicle loan that aligns with your needs and budget.
Interest Rates
Comparing the interests of commercial vehicle loans charged by varying lenders is one of the most important steps in identifying the right loan option. The rate of interest has a major impact on the loan EMIs and total cost of borrowing. Therefore, to save money and ease the repayment burden, you should try to find lenders offering the lowest possible rate of interest.
It is imperative to note that lenders do not always offer the same rates to all customers. Factors like your income, credit scores, and any other loan you may have, impact the interest rates offered to you.
Processing Fees
In addition to interest rates, comparing the loan processing fees is an important step in finding the right commercial vehicle loan. The fee may vary across diverse lenders. While the processing fee might not be too big a sum, comparing it is important as every bit counts when a loan, especially for business purposes. You should try to keep their cost of borrowing to a minimum, and therefore try to find lenders having the lowest processing fees for commercial vehicle loans.
EMIs
Equated monthly instalments (EMIs) are the amount you have to pay each month to repay your commercial vehicle loan. The EMI depends on three factors – the loan amount, the tenure of the loan and interest rates. You might be inclined to opt for a longer tenure as it would result in a lower EMI amount. However, you must remember that your interest payments will be higher. On the other hand, a shorter tenure may have a higher EMI, it will allow you to save on interest costs, on the whole. You must select a tenure that would allow you to comfortably pay the EMIs, but avoid stretching it for too long so that your interest expenses aren’t too high. Comparing commercial vehicle loan interest rates and processing fees, and selecting the right EMI amount are among the primary steps associated with availing such a loan. Doing proper research beforehand is important for selecting the right loan option, and keeping the borrowing costs in check.
