The Different Types of Vehicle Loans in India
Buying your own vehicle is a dream for many. To support this dream, there are various types of vehicle loans available in the market in India. Whether you want to buy a scooter for your personal use or a tractor for farming, you can apply for a loan to finance it. However, it’s important to apply for a loan under the right category to get quick funding. Moreover, the eligibility criteria, interest rates, and other factors differ for different types of vehicle loans. Understanding these can help you be better prepared and ensure your loan application gets approved without any hassle. Here are the five types of vehicle loans in India that you can apply for:
1. Car Loans
The car loan market is a USD 24 billion industry now in India. A car loan can fall into two categories — a new car loan and a pre-owned or used car loan. It’s simpler to get a new car loan and typically involves lower interest rates as well. On the other hand, you need to meet some conditions to get a used car loan and pay a higher interest rate. For instance, the car must not be older than five years.
Depending on the condition of the pre-owned car and whether it has insurance, the loan interest rates may differ.
2. Two-Wheeler Loans
Of all the vehicle loans listed in this guide, two-wheeler loans are probably the easiest to get. After all, two-wheelers are typically the least expensive of the different types of vehicles available in the Indian market.
Because of the comparatively smaller loan amount, these loans tend to have smaller repayment periods. The tenure is typically between 12 and 48 months for regular two-wheelers but could be greater for expensive bikes.
Lastly, two-wheeler loans have minimum eligibility criteria, so you need not worry about being ineligible. Simply find a reliable financing partner like SK Finance and apply for it.
3. Commercial Vehicle Loans
Commercial vehicle loans are for cars, vans, or heavier vehicles used for business purposes. As long as you use it for business purposes, you can apply for a a commercial vehicle loan.
If you want a reliable loan partner and affordable interest rates, consider partnering with SK Finance for commercial vehicle financing. See how we helped a customer achieve their dreams by offering a commercial vehicle loan.
To be eligible for this type of vehicle loan, a financier will check your credit score, business tenure, annual revenue, and other relevant criteria. So, be prepared for that.
If you can’t afford a heavy-amount loan, use commercial vehicle financing options like leases and purchase agreements. Or, you can connect with us for easy loans with flexible repayment terms and competitive interest rates.
4. Tractor Loans
Farmers or agricultural businesses that need a tractor can apply for a tractor loan.
Just like other types of vehicle loans in India, you can take a loan for both new and pre-owned tractors.
Typically, getting used tractor loans can be a bit tedious, but SK Finance makes it easier. Our company was recognized as the best pre-owned tractor loan financer in India at the esteemed ITOTY Awards'24.
We offer a generous repayment period of five years so that you can invest in your dream vehicle, without worry.
5. Construction Equipment Loans
You can take this type of vehicle loan to buy heavy equipment used in the construction and infrastructure industries such as Backhoe Loaders and cranes.
Due to the high costs of construction equipment, the loan tenure and eligibility criteria are high for this type of vehicle loan. The exact terms vary from provider to provider and depend on the total loan amount.
Generally speaking, you can repay such loans over several years, typically 2-7 years.
Get a Vehicle Loan with SK Finance
SK Finance is a leading provider of vehicle loans in India. We provide you with both financing and refinancing options. Our flexible payment terms and quick approvals make us stand out from traditional banks and financial institutions.
With SK Finance as your partner, you can fulfill your personal and business dreams and buy the necessary vehicles. Contact our team to find out the exact rates, loan tenure, and terms for the specific type of loan that you want.
