Commercial vehicles are an essential part of many businesses, whether it's transporting goods, providing services, or managing logistics. However, purchasing a commercial vehicle can be a significant investment. This is where a commercial vehicle loan comes in, helping businesses acquire the vehicles they need without straining their finances.

In this guide, we will explore what a commercial vehicle loan is, its benefits, how it works, and tips for applying.

What is a Commercial Vehicle Loan?

A commercial vehicle loan is a type of financial product offered by banks, non-banking financial companies (NBFCs), and other lenders. It is specifically designed to help businesses and individuals purchase vehicles used for commercial purposes. These loans cover a wide range of vehicles, including trucks, buses, vans, taxis, and other specialized vehicles.

Unlike personal loans, commercial vehicle loans are tied to the vehicle being purchased, which serves as collateral. This means if the borrower cannot repay the loan, the lender has the right to repossess the vehicle.