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New Commercial Vehicle & Construction Equipment Loan
At Axis Bank, we understand the transportation and construction industries and offer unique solutions to businessmen with need for New Commercial Vehicle Loans & Construction Equipment Loans. We offer funding for a wide variety of commercial vehicles at attractive rates of interest through our Commercial Vehicle Loan. Axis Bank also provides funding to customers in the construction industry with its Construction Equipment Loans.
Features & Benefits
Benefit from a high LTV ratio
Get up to 100% LTV on net invoice value.
Flexible repayment options
You can get a loan for tenure from 1 year to 5 years.
Terms & Conditions
Bank reserves the right to reject any application / renewal without assigning reasons thereof. It shall be the sole right of the Bank to consider the proposal on case to case basis after taking into consideration, the credentials/credit worthiness of each of the customers.
The applicant will undertake to inform the Bank as and when there is a change in address or employment.
The Terms & Conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at the Bank's discretion.
Eligibility
Keep your documents ready
Interest Rates & Charges
Interest Rates & Charges
| 1 yr MCLR | Spread over MCLR | Effective ROI | Reset |
|---|---|---|---|
| 8.75% | 1.60% - 5.60% | 10.35% - 14.35% | No Reset |
For Loans with tenure more than 36 months
| Effective ROI |
|---|
| 10.35% - 14.35% |
| Type & Charges | ||
|---|---|---|
| Sr. No. | Type | Charges |
| 1 | Cheque Bounce / Instrument Return Charges | ₹339 per instance |
| 2 | Cheque / Instrument Swap Charges | ₹500 per instance |
| 3 | Duplicate Statement Issuance Charges | ₹250 per instance |
| 4 | Duplicate Repayment Schedule Issuance Charges | ₹250 per instance |
| 5 | Duplicate No Dues Certificate / NOC | ₹50 per instance |
| 6 | Penal Charges | ** Financial Default: 8% p.a. above applicable interest rate on the overdue amount (subject to the aggregate not exceeding 24% per instance) |
| 7 | Foreclosure/ Part payment closure | *** 5% of Principal Outstanding (In case of Micro and Small Enterprise (MSE) customers, no prepayment charges are applicable if loan amount is up to ₹50 lakhs under Fixed rate loans) |
| 8 | Stamp Duty | At Actuals |
| 9 | Issuance of Credit Report | ₹50/- per instance |
| 10 | Processing Fee | CV: Minimum of ₹7,500, up to 1.5% of the Loan amount CE: Minimum of ₹7,500, up to 1.5% of the Loan amount |
| 11 | Loan cancellation/Re booking charges | ₹550/- per case |
| 12 | Documentation charge | ₹500/- per instance |
| 13 | RC Collection charge | ₹200/- per instance |
| 14 | ROC charge creation fee (Only for company cases) | ₹2,500/- per instance |
| 15 | Valuation charges: | Valuation charges to be collected at Actuals Used Commercial Vehicle (Standard assets) - ₹650 + GST per asset Used Construction Equipment (Standard assets) - ₹750 + GST per asset For all Non Standard assets- Valuation charges to be collected at actuals depending on asset to asset |
| *Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable) **There shall be no capitalisation of Penal Charges; Financial Default includes all types of payment or financial defaults/irregularities with respect to your Loan Account | ||
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Frequently Asked Questions
The vehicle / asset is hypothecated to Axis Bank and lien is marked in favor of Axis Bank on the Registration Certificate, Final Invoice and Insurance Policy.
Our sales team would help you negotiate the best rate on your loan. Lending rates vary based on the customer profile, constitution and the nature of asset being funded.
Axis Bank finances most of the Commercial Vehicles and Construction Equipment’s which are available in India.
No, you cannot sell the vehicle / asset unless your loan account has zero outstanding. An NOC is required from the bank before you can sell the vehicle / asset.
Axis Bank vehicle / asset loans are offered at a fixed rate of interest, i.e. the interest rate remains unchanged for the tenure of the loan.
If you are an Axis Bank account holder, you can opt for direct debit (Standing Instruction) of your savings account. ECS (Electronic Clearing Service) debit mandate is another mode of repayment by which your bank account gets debited for the loan repayment on a specific date in a month.
The choice is completely yours. However, from customer ease perspective, most of our customers today opt for Direct Debit instructions such as Standing Instructions/ Electronic Clearing Services. Please note that there is nominal charge in case you wish to change to either of the repayment mode. Please visit your Retail Asset Centre to assist you on the same. ECS facility will enable direct debit of your bank account every month on the specific instruction.
You can contact the nearest RAC for any queries. To address your queries, a customer service representative is available in each RAC. Please mention your loan account number and contact details and e-mail id in all your correspondence.
Dishonoring a cheque is a criminal offence making you liable for legal action and your credit profile could also be seriously damaged. Apart from that you need to pay the bouncing charges as well.
After the last payment is made, you can get the lien of the bank on your Commercial Vehicle and Construction Equipment Loan cancelled. You will be issued a loan closure letter by the bank along with Form 35 and NOC to the RTO for cancelling the lien from the R/C book. A similar NOC will also be issued to the insurance company requesting for the deletion of their lien from the policy.
You can approach us in any of the following ways:
- Walk into our Branches / Retail Asset Centers
- Contact our sales team at the dealership
- Apply Now
- Locate Nearest Branch
Axis Bank will convey its decision (a) within 14 working days for credit limit up to ₹25 lakh for Micro & Small enterprises borrowers OR (b)within 30 working days for other borrowers from the date of receipt of the application, provided the application is complete in all respects and is submitted along with all the documents as per ' checklist' provided in the application for loan and/or any additional documents as may be required by the bank for proper appraisal of the application. The computation of timeline of shall start from the day on which all documents required for a proper appraisal are provided by the Customer to the Bank. The applicant is in receipt of the indicative Interest Rate, Processing Fees & Other Charges that would be applicable, if the Bank grants the facility.
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Track NowTerms & Conditions
Bank reserves the right to reject any application / renewal without assigning reasons thereof. It shall be the sole right of the Bank to consider the proposal on case to case basis after taking into consideration, the credentials/credit worthiness of each of the customers.
The applicant will undertake to inform the Bank as and when there is a change in address or employment.
The Terms & Conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at the Bank's discretion.
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