Commercial vehicle loan for trucks, vans and delivery vehicles
A commercial vehicle loan finances a truck, van, tipper or delivery vehicle used to earn business income, with the vehicle hypothecated to the lender until the loan is repaid. Compare offers on the annual percentage rate, which RBI requires lenders to state in the Key Facts Statement. It suits a business whose vehicle earns the instalment.
Capnix is not a lender and never lends its own capital. The lender sets the down payment, tenor and rate. We build the case around the vehicle and the cash flow behind it, share your file with lenders on our panel only after you give consent, and run the lender application. Getting your loan through us costs you nothing.
- Loan
- Commercial Vehicle Loans
- Decided by
- The lender
- Cost to you
- ₹0
- Last checked
The facts that matter
| Fact | What it means | Source |
|---|---|---|
| Annual percentage rate (APR) | The annual cost of credit to the borrower, including the interest rate and all other charges. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
| Key Facts Statement | Required for new retail and MSME term loans sanctioned from 01-Oct-2024, in a standard format with the APR and every charge. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
| No hidden charges | A fee that is missing from the Key Facts Statement cannot be charged unless you have explicitly agreed to it. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
| Penal charges | A penalty is a penal charge, not extra interest, and it cannot be added to the loan to earn more interest. |
RBI penal charges circular, 18-Aug-2023 Checked 02-Oct-2026 |
| Early repayment | No pre-payment charge on floating-rate business loans to individuals and micro and small enterprises at most banks and larger NBFCs, from 01-Jan-2026. Fixed-rate loans are not covered. |
RBI pre-payment directions, 02-Jul-2025 Checked 02-Oct-2026 |
How a commercial vehicle loan works
The lender funds a share of the vehicle's price. The vehicle is hypothecated to the lender, which means the lender holds a charge over it until you repay. You repay in instalments over a tenor the lender sets.
A new vehicle and a used vehicle are treated differently. Expect questions about a used vehicle's age and condition. Compare at least three offers in writing, because terms differ widely.
Down payment and the instalment
The down payment is the part of the price you pay yourself. Insurance and registration add to the on-road price, so ask the dealer for the full figure. The instalment depends on the loan amount, the rate and the tenor. The worked example below shows how a flat rate and a reducing rate differ.
How to compare offers
Compare on cost, not on the headline rate. Ask each lender for the same details in writing.
- The annual percentage rate, which includes every charge
- Whether the rate is flat or reducing, since a flat rate costs more than the same number on a reducing balance
- The down payment and the tenor
- Foreclosure and pre-payment terms
- Whether insurance is bundled into the loan
Source: RBI Key Facts Statement circular, 15-Apr-2024, checked 02-Oct-2026.
Fees and your rights as a borrower
| Point | What applies | Source |
|---|---|---|
| Key Facts Statement | Must come with a unique proposal number and stay valid for at least three working days, with the APR and the repayment schedule. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
| Charges outside the statement | A fee that is not in it cannot be charged unless you have explicitly agreed to it. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
| Penal charges | A penal charge, not extra interest, and never compounded. |
RBI penal charges circular, 18-Aug-2023 Checked 02-Oct-2026 |
| Early repayment | None on floating-rate business loans to individuals and micro and small enterprises at most banks and larger NBFCs, from 01-Jan-2026. Check your own loan's terms if the rate is fixed. |
RBI pre-payment directions, 02-Jul-2025 Checked 02-Oct-2026 |
Worked example: ₹15,00,000 over 48 months, flat rate and reducing rate
A business borrows ₹15,00,000 for 48 months. One lender quotes 10% on a reducing balance. Another quotes 10% flat, which means interest is charged on the full amount for the whole tenor. The quoted rate is an illustration, not a lender's offer.
| Item | Reducing balance | Flat rate |
|---|---|---|
| Quoted rate | 10% | 10% flat |
| Monthly instalment | ₹38,044 | ₹43,750 |
| Total interest | ₹3,26,106 | ₹6,00,000 |
| Rate on a reducing balance that gives the same instalment | 10% | 17.6% |
Compare offers on the annual percentage rate, which RBI requires in the Key Facts Statement. Fees, insurance and the down payment are not included.
Who it suits and who it does not
A strong fit if
- The vehicle supports revenue or essential operations
- You want to keep cash instead of paying the full price up front
- The vehicle's earnings can carry the instalment
Not a fit if
- You need cash for fuel, salaries or stock (see a working capital loan)
- You cannot cover the instalment in a slow month
Documents lenders usually ask for
One bank's own guide lists the business records below. A vehicle lender also needs the vehicle's quotation.
- The vehicle quotation from the dealer
- Your bank statements for the past 6 to 12 months
- Six to twelve months of GST returns
- One to three years of tax returns and financial statements
- Identity and address proof of the business and its promoters
Source: Bank of Baroda guide to business loan documents, 29-Apr-2026, checked 02-Oct-2026.
Business loan documents checklistHow Capnix fits
- Start with your free Capnix score. It reads turnover, GST discipline and banking health, the cash flow behind the vehicle.
- Consent comes first: Capnix shares your file only with lenders on our panel, and only after you give it, and you can take it back in your Capnix account.
- Capnix earns a fee from the lender once your loan is disbursed. It is never added to your loan.
More than a loan. A team that gets you there
Funding matched to the vehicle's use
We help a lender see how the vehicle earns revenue or supports your operations.
Asset-friendly lender matching
We approach lenders comfortable financing business transport and structuring repayment around your cash flow.
Where this helps
- Buy trucks, vans or delivery vehicles
- Expand a transport or logistics fleet
- Replace ageing commercial vehicles
- Finance vehicles used in daily operations
What happens after you start
We work out your Capnix score first, then work the lender applications with you until the money is disbursed.
See how it worksLoan products, rates, and eligibility are determined by the lenders on our panel. Capnix is not a lender and does not lend its own capital. We run your loan journey end to end.
Have a question?
Find answers here
Whether you are scaling up, smoothing cash flow, or buying new equipment, we take your file to the right lender and stay with it through to disbursal.
Read the route to revenue. Matched to the right lender
A commercial vehicle loan should fit how the asset earns or supports operations. We read the vehicle type, business use, revenue path, and repayment capacity.
From there we approach lenders who finance business transport assets, so the structure fits the vehicle and the cash flow behind it.
Real people,
start to disbursal.
No hand-offs and no generic replies. A dedicated team
works the lenders while you keep running your business.