Commercial pickup trucks are widely used by diverse types of businesses today. Applying for a commercial vehicle loan would be among the easiest ways to finance the purchase of new pickup trucks for business. These loans have multiple advantageous features.
Pickup trucks are often considered to be the ultimate business workhorse. After all, they have become indispensable in multiple industries, including landscaping, agriculture, and construction. Pickup trucks can be used for transporting tools, equipment, and materials to job sites. The spacious bed of these trucks additionally comes in handy when transporting large items, like appliances or furniture.
No matter whether one plans to start a new light cargo business or wants to expand their existing venture with a larger fleet, adequate financing would be needed to buy new pickup trucks. Not all small and medium business owners can afford to use their working capital to buy new commercial vehicles. Hence, they should consider exploring other options, like applying for commercial vehicle loans. There are many banks and NBFCs that offer loans for the purchase of pickup trucks. Through the best commercial truck loans, one can finance up to 94% of the on-road price of the vehicle. There are many advantageous aspects of commercial pickup truck loans.
Flexible Repayment Tenure
Borrowers enjoy the flexibility to select the repayment tenure for the commercial pickup truck loan, based on their specific requirements and budget. In most cases, borrowers provide a repayment tenure of up to 60 months for such loans. Many business owners are inclined to select a long repayment tenure to have a low EMI amount. However, longer tenure would also incur greater expenses as interest payments. On the other hand, while a shorter tenure shall result in higher EMIs, it would incur lesser interest payments on the whole. Borrowers need to carefully evaluate the financial standing and prospects of their business, identify the EMI amount they can afford to pay each month, and select the tenure as per its accordance. Commercial vehicle loans allow business owners to spread the cost of buying new commercial pickup truck loans over some time, instead of having to deal with a huge financial burden at once.
Interest in Reducing Balance
Interest on commercial pickup truck loans is usually provided on reducing balance. When interest is provided on reducing balance, every EMI payment made by the borrower comprises a principal component and an interest component. As a result, with each EMI payment, the principal amount that has to be paid back goes down. This invariably reduces the interest component in subsequent EMI payments. One of the most beneficial aspects of using the reducing balance method for interest calculation is that the total amount of interest payable goes down over time. Therefore, in comparison to the flat rate method, the overall burden of interest is a bit less in this situation, as long as the borrowers pay their EMIs promptly.
Minimal Documentation
Top lenders in India ensure easy and swift disbursement of commercial vehicle loans while requiring minimal documentation. Most lenders only require certain basic documents for the approval of pickup truck loans. These include:
- KYC Documents like PAN Card, Passports Voter ID Card, and Aadhaar Card
- Income Proof like IT Returns, Bank Statements, Repayment Track Records, and RC Copies of Existing Vehicles
- Vehicle-related documents like Driver’s License, Copy of RC and Insurance of New Vehicle, and Vehicle Valuation Report
One can easily apply for the best commercial truck financing online, on the website of any bank or NBFC offering such loans. Detailed insight into the process of applying for such loans can be found on their official websites.