Truck Finance

Just enter the loan amount of truck you want to get financed and rate of interest. Vicky.in EMI Calculator automatically calculates the installment on reducing balance and it does not have any other processing fee.

Finance Tips

Now-a-days, to meet the demand for trucks that has been increasing due to its usage in carrying loads for construction purposes, pioneers in truck dealers like Ashok Leyland, Bajaj, Mahindra, Piaggo and Tata are releasing different models of trucks ranging from small to customized ,every year. For transportation agents and individuals ,those who don't have sufficient purchasing power, truck loan serves as a powerful tool ,in getting the truck they dreamt of.

Loan definition:

An arrangement in which a lender gives money to a borrower, and the borrower agrees to repay the money, usually along with interest, at some future point(s) in time.

Eligibility for getting loan:

If a person is applying for the loan, his loan will get sanctioned only if his eligibility criteria gets satisfied. The reason for checking the eligibility criteria is mainly for assessing a person whether he has the repaying capacity to make the full payment. Each bank has its own eligibility criteria. For example, eligibility criteria of ICICI bank are as follows
  • Any individual/partnership firm/company with more than two years of business experience.
  • Existing owner of at least two commercial vehicles.
  • Captive customers and transporters.

Documents Required:

Some of the documents are required for getting quicker approval for truck loan, assessing the repaying capacity. The requirements in case of documentation differs with each bank.For example , If you consider the documentation requirements of IndudInd Bank, the following are the requirements:
  • Proof of residence - ration card or passport copy or Voter's ID
  • Contract copies for special purpose vehicles/ vehicles deployed against specific contracts
  • Statement of earlier loans taken
  • Copy of property deed for immovable property owned
  • RC book photocopies for vehicles owned
  • Copy of income tax and wealth tax returns for past two years
  • Details of your guarantor - his business, net-worth, IT returns and wealth tax term copies

For Partnership Firms:

  • Partnership deed and authorization letter for partnership firms
  • Profit and Loss account and Balance Sheet for past 2 years
  • Registration certificate
  • Contract copies for special purpose vehicles/vehicles deployed against specific contracts
  • Statement of earlier loans taken
  • Copy of property deed for immovable property owned
  • RC book photocopies for vehicles owned
  • Details of your guarantor - his business, net-worth, IT returns and wealth tax term copies

Loan schemes:

The procedures and offerings for loan differs with banks according to each bank's terms and conditions. Even the interest rate and the processing fee and differs with each bank. For example, ICICI bank provides
  • Interest rate: 12%-15%
  • Processing fee-0.50% of gross loan amount
  • Documentation charges-Rs350/-
Whereas in Bank of India,
  • Interest rate: Base rate+0.45% presently 10.65% p.a. at monthly rests
  • Processing charges/Handling charges:
Upto Rs 25,000One time Rs1000
Above Rs25,000-Rs25lacsOne time @1% of loan amount Min.Rs.2000/- and Max.Rs.10,000/-
Above Rs25lacsOne time flat Rs.15000/-

Equated Monthly Installment(EMI):

A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full

EMI calculator:

It gives you the payment schedule containing principal and interest rate break up in each EMI, thus providing you with effective interest and cost that you have to pay to the lenders .It mainly helps for comparing loan offers from lenders.

Online tools:

Like EMI calculator ,availability of online tools helps you to assess your eligibility for purchasing the trucks ,for which you have to provide your personal details ,income proof-for repaying capacity ,residential proof ,thus enabling you to know about the loan amount ,tenure ,monthly payment that includes documentation and processing charges .In addition to this ,if you select the truck model and bank name, details will be displayed regarding the offers available at each bank ,loan amount along with EMI payment schedule ,tenure etc. With the aid of this tool, you can select the bank which provides loan at reasonable interest rate that economically suits you ,avoiding unnecessary hassle .This makes the customers more self-satisfied with quicker approval of truck loan.