Commercial vehicle loans are the loans that are given for buying various commercial vehicles. Nowadays, many lending companies are providing commercial vehicle loans. So, without any hassle a borrower can easily avail these loans. But, borrowers have to fulfill some pre requisite criteria before applying for a commercial vehicle loan. These are like:
• Submission of income proof that lender can verify.
• Submission of residential address proof that also can be verified.
• Borrowers’ credit history should be good
• Borrowers’ must have a valid driving license
• Submitting personal references like phone bills, bank statements, tax returns are also required.
These loans are obtainable for those who are first time buying any commercial vehicle as well. There are many loan lenders in loan market those offer commercial vehicle loans to first time buyer. Nevertheless, the rate of interest of commercial vehicle loans depends on few things. These are as follows:
• Borrowers’ Credit history
• Type of the vehicle- whether it is new or already used
• Period of loans.
Normally, commercial vehicle loans are offered for a period of 1-4 years. These loans are also available as simple interest loan where the interest rate is determined according to principal amount. If anyone’s borrowed amount becomes more than ₤25,000 then simple interest loans are ideal for him. The term period of these loans are decided more than 3 years.
Commercial vehicle loans can be financed in two different ways- direct and indirect. In direct financing, borrowers apply any bank or lending institution for loans. On the other hand, in indirect financing borrowers get commercial vehicle loans from dealers. In this context, one should remember that these loans are used for buying various commercial vehicles. So, as a commercial vehicle loan one can borrow only that much amount which is equal to the rate of his vehicle.
Borrowers with bad credit history can also opt for a commercial vehicle loan. Many online lenders provide commercial vehicle loans to bad credit scorers. Apart from online lenders, a borrower with bad credit score can avail these loans from traditional lenders like banks, credit unions, dealers etc. But in such cases, borrowers should keep their mind that because of their bad credit score they may have to pay high rate of interest at the time of availing a commercial vehicle loan.
Availing a commercial vehicle loan is easy these days. Thus many borrowers are taking help of these loans at time of buying commercial vehicles. At last it can be said that a bit search is necessitated to get a pocket friendly deal.