What is the procedure to get loan on commercial vehicles?
i wanted help in knowing the procedure and other rules and reulations which we need to take care while taking an loan on commerical vehicle.
can anyone help me with that ?
Thanks in advance!
Loan on commerical vehicle is given by banks depending on many situation. One loan that i helped to one of clients, the procedure was.
- Make an applicaiton to bank
- Bank will ask project report since its a commercial vehicle
- Provide bank with Project report
- Fill the application and other requirements
Loan will be processed.
Babu sir, since you are going for commercial vehicle loan, no doubt that there will be business activity.
bank will ask for following documents..
1. Projections for the vehicle business. (How much turnover will be there, profit from business & estimation of other operating expenses), so that bank could justify the requirement of loan.
2. your income tax returns for last 2 to 3 years if available. (to see your ability to re pay the loan if not possible through business sources).
3. you need to fill up properly all the details as required by bank in the application of loan.
4. once your loan is approved all original documents which proves legal ownership of vehicle will be mortagaged with bank & bank will hold the same until you clear your dues i.e. vehicle loan.
4. in this case bank may ask to open saving account also to disburse the loan & to sett repayment schedule through saving account there fore EMI will be debited automaticaly every month. (point no. 4 is alternative & depends upon policies of bank.)