A guide to heavy commercial vehicle loans and how to get one.

Our credit offerings and the interest rates are one of the best in the industry thus making us one of the leading financiers for Tata Motors Vehicles.
Alok Chadha, Business Head – MCV and ICV, Tata Motors Finance Ltd

The loan for Commercial Vehicle (CV) is usually taken by individual, partnership firms, proprietorship firms, trusts, societies, businessmen, private and public limited companies, etc for their financing needs for owning and running CVs. The borrowers of CV loans usually do the business of transportation. CV loan options are available for buses, tippers, transit mixers or any other heavy, light or small CVs. Here’s a guide to Heavy Commercial Vehicle (HCV) loans and how to get one.

Compare to earlier days, finance for HCV has become easy as numerous banks and finance companies have changed their terms and conditions. If one meets the required parameters then he/she can choose the multiple options available in the market.

Interest rate for CV
The interest rate for CV loan generally ranges from 10-15 per cent depending on the segment of customer and the segment of vehicle. Customer segment consists of self employed, corporate, businessmen, partnership firms, etc whereas vehicle segment includes trucks, buses, cars, etc. The interest rate depends on the factors like number of vehicles owned by the borrower, his/her business turnover, repayment track from other financiers (if any), etc. After studying the documents and the profile of any individual borrower, the bank or finance company confirms the final rate of interest to be charged for that profile. The interest rate may be fixed or variable.

Process
The procedure for requesting a CV loan is easy, fast and trouble free. As all the required documents are submitted, banks take 4-5 days to process a new or used vehicle loan application. The documentation procedure for a CV is quick and hassle-free. Without going to the bank, one can easily upload all the important documents online. For CV loan there is no requirement of any credit score. Depending on the type of vehicle, duration of loan and each individual’s financial ability; every CV loan scheme is customised to meet the particular requirement.

HCV finance industry on a growth track
The HCV finance industry is on track for growth this year, believes Alok Chadha, Business Head – MCV and ICV, Tata Motors Finance (TMF) Ltd. He said, “We at TMF are excited and ready for achieving new milestones. The impact of demonetisation and the phasing out of BS III vehicles are already behind us. The market has recovered thus leading to improvement in the cash flow. Third quarter of the current fiscal has been good for the HCV industry. The increasing focus on infrastructure is fueling the growth of HCV industry in the country. With the advent of BS4 vehicles things are looking very bright for the HCV industry.”

TMF funds the entire range of HCV which includes construction vehicles, buses, haulage trucks, tipper trucks, rigid trucks and trailer trucks. “We cover all applications to match the demands of our customers,” claims Chadha.

USP of TMF’s HCV loan portfolio
TMF has presence across all customer segments ranging from first time users to huge fleet owners. The company is also present across all geographies thus enhancing the reach across India. Chadha says, “We have a range of customised finance products to match the client’s requirements. Our credit offerings and the interest rates are one of the best in the industry thus making us one of the leading financiers for Tata Motors Vehicles.”

“With constant improvements in technology and various tools used internally, TMF is able to offer the best turn-around time to the customers,” claims Chadha. Coupled these USPs with understanding of customer needs, preferences and decades of trust has made TMF the undisputed market leader in the industry.