For the start-ups and small size companies, availing heavy vehicle finance always seem to be a good option. Even big businessmen prefer taking loans when it comes to purchasing heavy vehicles. The need of buying new and advanced heavy vehicles is catching speed as the economy is growing higher and higher. Moreover, there is no dearth of reputed banks that provide loans for heavy vehicle.
Eligibility Criteria that must be followed while Availing for Heavy Vehicle Loan:
Notable private banks provide heavy vehicle finance to experienced and new businessmen as long as their conditions and criteria are being fulfilled. Given below are few basic eligibility criteria put forward by the banks which one must fulfill:
- Individuals who are applying for the loan must have an experience of minimum three years to five years depending on the work expansion and profile of the applicant.
- Individuals who are applying should not have a loan which still has to be cleared.
- If you’re running a private organization or in a partnership or any non-profitable organizations, you have produced the audit files of last two years.
- Individuals should possess at least two vehicles; it can be first hand or second hand.
Once you’ve fulfilled the above requirements, you must provide the following documents to the bank.
- Photocopies of ID proof
- Photocopies of proof of business address
- Application form
- Three passport size photographs
- Income certificate of last three years
- Original residential proof and PAN
- Birth certificate
- Verification of your signature
- Documents regarding your past work and present in-hand assignments
- All the documents regarding your existing vehicles
- Invoice pro forma
After submitting your documents, it takes at least seven days for the sanction letter to come. Once your application and documents have been sanctioned, you must provide the last few remaining documents to the bank.
- Your loan agreement must be duly signed by the Regional Transport Office.
- You should submit all the cheque which are post dated and ECS forms.
- The margin money receipt and the insurance note cover.
Advantages of Using Heavy Vehicles
People apply for heavy vehicle finance as they have proved to be beneficial on large scale basis. If you’re new in this business, it is very obvious for you to not know about the pros and cons of heavy vehicles. Heavy-duty vehicles generally refer to large trucks; while trucks are even available in light-duty categories. Light-duty trucks can transport small items such as furniture from one place to another. However, heavy-duty trucks are beneficial in a lot of ways. Given below are few advantages of heavy-duty vehicles.
- When you’re buying a heavy-duty vehicle, you usually get an option of choosing a vehicle with the gas tank or diesel tank. Vehicles having diesel tanks can obviously work for long hours and has more power.
- You can make them work for commercial and rental purposes. You may have a large fleet of high duty vehicles. Giving one or two for rent will fetch you some extra cash. There are many building contractors who on occasional basis need heavy duty vehicles can approach you when in need.
- Lightweight vehicles can carry maximum three thousand pounds while heavyweight vehicles can carry up to six thousand pounds which is double to what lightweight trucks can carry. Using heavy vehicle will prove to be less expensive and will also save a lot of time. Buying a new vehicle is a big investment in itself thus takes time to choose wisely.
Well, if you’re low on budget and not willing to buy first-hand vehicles, then you can always buy used heavy-duty vehicles. Going for this option will help you in spending less and yet get your job done.