Commercial vehicles are used for transporting men and materials, and so are part of business activities — buses, trucks, tempos, jeeps, tippers, vans, JCB loaders, and similar vehicles used in the course of business.
Eligibility
Any individual with a valid driving license or permit and reasonable experience in the relevant line of business.
Income
The Debt Service Coverage Ratio should not be less than 1.5:1 — internal accrual should be at least 1.5 times the outgo on loan installments and interest.
Loan Amount
Covers the invoice cost (plus registration, one-time tax, and body building) for a new vehicle, or the agreement/market value (whichever is lower) for a second-hand vehicle, after maintaining the prescribed margin.
Margin
25% of invoice value (from an authorised dealer), plus one-time RTO taxes.
Security
Hypothecation of the vehicle being purchased.
Guarantee
One or two solvent third-party guarantors, depending on the loan amount.
Period of Loan
Maximum 60 months for both new and second-hand vehicles, repaid in EMIs.