What Can Be The Interest Rates On Heavy Vehicle Loan?

Interms of heavy marketable vehicle loans, the rates of interestdiffers depending upon factors like the loan amount, period ofreimbursement and the borrower’s capability to payment asunconquerable by the loan providers.

Areyou a transport operator? Looking to finance on a heavy vehicle andin need of loan! There is Loans available for you from community,confidential, and semi-government banks. Heavy vehicle loans aregranted for the purpose of buying Truck, bus, loading van, tempo,boat and other vehicle.

Convey operators are granted loans forpurchase of heavy business vehicles. The vehicles purchased are keptas collateral against loan to the bank. The bank capitals up to 75%of the outlay of the vehicle. The customer has to make down paymentof some amount from his own sources. This loan is further repaid onmonthly installments basis. The convey operative should have been inindustry for the last 3 years.

Volvo, Eicher Motors Limited,Tata, Telco, Leyland National, Honda, Nissan, Toyota and VauxhallMotors are some popular heavy vehicle brands. Loans are availablefrom self-employed owner to a large business owner. Though the eventsfor availing heavy vehicle loans are similar to individual financingrelevance, the terms of the loan are quite dissimilar.

Squatinterest rates with a loan reimbursement period up to 10 years areoffered by a high-quality lender. Standardization of Heavy vehicleloan is usually done within 24 hours.

Fundamentalsfor heavy vehicle loan application have been mentionedbelow:
1.Borrowershould be of good credit history
2.Should be a holder of validdriving license
3.Must have a fixed Income proof
4.Residentialaddress proof
5.Few orientated documents like bank statement,phone bills, and tax returns.

Primary instant buyer can alsoapply for these loans. The velocity of significance depends on theperiod of loan, borrower’s acknowledgment account, and whether thevehicle is new or not. There are basically, 2 methods of heavyvehicle financing such as Direct financing, where the borrowerapplies to a bank or any lending organization and Indirect financing,where the borrower avails loans from dealers.

A higher rate nointerest will be charged if the borrower with bad credit historyapplies for loan by going through online lenders as well astraditional lending institution. The most common heavy vehicle schemewhich is given by banks is truck financing scheme. Some banks normstruck loan is from margin repayment period within 36 months the 15 %of vehicles will be charged on road cost and if it is beyond 36months and till 5 years it will be 25% of vehicles road cost. Aboutrate of interest is that the current lending rate will be 13 % peryear. 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 willbe 12% annually.

Article Tags: Heavy Vehicle Loan, Interest Rates, Heavy Vehicle, Vehicle Loan

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