How is commercial vehicle financing different from regular auto financing?

A commercial vehicle loan is similar to a regular car loan in terms of the broad financing process and parameters used. However, the key difference is that it is specially designed and targeted towards financing the purchase of vehicles meant for commercial purposes and business needs.

It enables individuals and businesses to buy assets like trucks, tempos, tractors, and construction equipment—essentially vehicles that will support transportation/logistics or other business operations. While the overall loan application and approval method may be similar, a commercial vehicle financing offering is structured to align with the distinct needs and costs involved in acquiring commercial vehicles.

This means that depending on the loan provider, the loan amount, tenure, interest rates, eligibility criteria, and application process are all customised for financing commercial vehicles.