Commercial Three-Wheeler Loans: A Complete Guide

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By Priya SinghUpdated On: 27-Apr-2023 10:58 AM

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ByPriya Singh |Updated On: 27-Apr-2023 10:58 AM

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Commercial automobiles, like individual vehicles, are becoming more expensive with each passing year. As a result, asking for a business three-wheeler loan has suddenly become necessary. In this article, we will go over every aspect of three-wheeler loans.

Commercial vehicles are an important aspect of any country's economy. Businesses would be unable to provide last-mile logistical services to their clients without them. Furthermore, in developing economies such as India, commercial vehicles such as three-wheelers are the favoured means of public transportation. This also highlights the fact that having one or a fleet of business vehicles can aid in financial stability.

With improved road infrastructure, the country is moving toward a hub-and-spoke transportation paradigm supported by a varied spectrum of vehicles. Because of their maneuverability and low operating costs, smaller three-wheelers and electric three-wheelers provide lane connection.

A Commercial Vehicle Loan is an unsecured loan that helps borrowers, who are typically self-employed persons, corporations, partnership businesses, organizations, and so on, purchase any commercial vehicle required for their transportation business or any other business. Because no collateral is required, you can obtain a commercial vehicle loan online at competitive interest rates and flexible repayment terms.

Commercial automobiles, like individual vehicles, are becoming more expensive with each passing year. As a result, asking for a business three-wheeler loan has suddenly become necessary. In this article, we will go over every aspect of three-wheeler loans.

What do you mean by Three-Wheeler Loan?

A three-wheeler loan is a loan for auto-rickshaws, cargo three-wheelers, and other modes of transportation. They are typically used to assist people in paying off the vehicles they have purchased, as well as any loans and fees acquired in the process.

There are numerous sorts of three-wheeler loans available from various banks or lenders, making it difficult to choose which one is best for you. Contact a specialist at one of our vehicle dealerships today for more information on what type of three-wheeler loan is best suited for you.

Characteristics of Commercial Three-Wheeler Loans

Lenders include a number of amazing features with their business three-wheeler lending packages. Some of them are as follows:

• It is rather simple to have a commercial three-wheeled vehicle loan application authorized.
• When all required documentation is presented, the processing period for commercial three-wheeled loan applications is shortened.
• Almost all lenders in India provide low-interest loans for the purchase of commercial three-wheeled vehicles. The best aspect is that lenders provide these loans with no collateral.
• Personal relationship managers are frequently assigned by lenders from the start. This ensures that all operations related to the vehicle's purchase run smoothly.

Also Read: Commercial Vehicle loans: Benefits, types, process, eligibility and other details

Types of Commercial Three-Wheeler Loans

The following are the available commercial vehicle financing packages geared for three-wheelers:

• Loan for a Standard Commercial Three-Wheeled Vehicle

The regular commercial three-wheeled vehicle loan is intended for consumers interested in purchasing a new commercial vehicle. There are lenders who will cover the entire ex-showroom price of a commercial vehicle. However, the interest rates and EMIs for those loans are quite high. Lenders might also provide additional funding if the commercial vehicle requires body construction or other upgrades.

• Loan for Old Commercial Three-Wheeled Vehicles

Leading lenders also create and offer financing programs tailored to the used commercial vehicle industry. Not everyone requires or is able to purchase a new commercial three-wheeled vehicle. Leading lenders offer loans especially for commercial vehicles under the operational age of 15 years to assist those people. These finance programs often cover about 90% of the asking price of a used business vehicle.

• Refinancing of Commercial Three-Wheeled Vehicles

Commercial three-wheeled vehicle refinancing plans are intended for commercial three-wheeler owners who are unhappy with their current lender. There are times when a lender would offer exorbitant interest rates on a business vehicle loan. The EMIs for a commercial three-wheeler loan are high, and the loan terms are not customer-friendly. Three-wheeled commercial vehicle owners in such situations might apply for commercial vehicle refinancing to transfer lenders.

Who is eligible to apply for a three-wheeler loan?

• Existing vehicle owners looking to purchase a new or additional vehicle.
• Currently, employed as an auto driver driving a borrowed vehicle.
• New purchasers who desire to make a living with an automobile.
• Small firms purchase three-wheeled cargo vehicles for transporting.

What are the Documents required for a three-wheeler loan?

• KYC documentation
• Bank Statements
• ITR
• Copy of the driver's relevant driving license

Advantages of Commercial Vehicle Financing Solutions

There are numerous advantages to commercial three-wheeled vehicle loans. Some of the most tempting features of this particular type of financial instrument are listed below.

• Commercial vehicle lending programs provide borrowers with flexible payback terms. Commercial vehicle loans, like individual vehicle loans, can have terms of up to 5 years. A long tenure allows one to lower the monthly EMIs they must pay. However, there is a catch. A long-term loan comes with high-interest rates.
• Commercial vehicle loans, as opposed to private vehicle loans, can provide money for the purchase of several commercial vehicles. This makes commercial vehicle loans ideal for those looking to acquire a fleet of commercial cars and expand their company.
• Applications for commercial vehicle loans are handled within 5 business days. All that would be required is the submission of relevant documentation.
• Commercial vehicle loan schemes, like private vehicle loan schemes, can be applied online. Documents can even be submitted remotely. It means that a person does not even need to apply for a loan before visiting a business vehicle dealership. They can get a loan at the dealership.
• Lenders who offer commercial vehicle loans do not need loan applicants to have a high credit score or a perfect credit history. Lenders will finance business automobiles even if the borrower does not have a credit score or a clear credit history.
• Lenders who provide commercial vehicle loans typically provide customized loan terms. For example, loan details such as EMIs, interest rates, and so on are optimized based on the type of three-wheeler model and brand. Loan terms are also tailored to the borrower's financial circumstances.

What is the maximum loan amount for a three-wheeler?

The finance amount is determined by the three-wheeler model and the customer's profile.