A commercial vehicle loan is a type of financing specifically designed for purchasing vehicles used for business purposes, such as trucks, buses, taxis, or delivery vans.

These loans are offered by banks, financial institutions, and specialized lenders, tailored to meet the unique needs of commercial vehicle buyers.

The loan amount, interest rates, and repayment terms vary based on factors like the vehicle type, borrower's creditworthiness, and the lender's policies. Typically, borrowers need to make a down payment ranging from 10% to 25% of the vehicle's purchase price. Repayment schedules are structured to align with the expected cash flows from the vehicle's commercial use, often spanning 3 to 7 years.

Interest rates may be fixed or floating, influenced by market conditions and the borrower's credit profile. Lenders may require documentation such as income proof, business details, and the vehicle's registration and insurance papers.

Some loans may offer additional features like flexible repayment options, refinancing facilities, or bundled insurance packages. Understanding these aspects helps businesses make informed decisions when financing commercial vehicles to optimize operational efficiency and financial management.