Guide to Starting a Truck Business in India

15 November, 2023

Starting a truck business in India can be a lucrative venture, given the country’s booming logistics and transport industries. As per a Niti Aayog report, India’s truck market is projected to grow four times by 2050.

However, one of the significant challenges that budding entrepreneurs face is acquiring the requisite capital for purchasing trucks and other commercial vehicles. These vehicles are costlier than even some luxury private cars and SUVs.

Thankfully, there are Commercial Vehicle Loans to help you overcome this financial hurdle. They empower you to meet all your truck financing needs without any hassles.

Continue reading to know what a Commercial Vehicle Loan is and how it can help you realise your dream of starting a truck business in India.

What is a Commercial Vehicle Loan, and how can it help in setting up a truck business in India?

Commercial vehicle finance refers to a range of loans designed exclusively to help you purchase commercial vehicles for your business. You can buy a range of heavy, medium, and small commercial vehicles, including trucks, tempos, tippers, transit mixers, pick-up vans, trailers, and containers, among others.

Commercial vehicle financing comes under the category of term loans, which means that you can repay the loan amount in Equated Monthly Instalments (EMIs) over a pre-determined tenure. The EMIs that you need to pay for your Commercial Vehicle Loan would comprise two constituents - the principal and the interest.

Here’s how a loan for commercial vehicles can help you establish your truck business:

• Get access to loan amount.
  
  Purchasing commercial vehicles, especially heavy-duty trucks and containers, can require substantial financial investment upfront. You can apply for a loan for commercial vehicles and get access to the necessary finance required to kickstart your truck business.
  
  While the loan amount can vary depending on your specific requirements, you can avail of up to 100% financing of the asset cost and as per eligibility. You can even apply for second-hand commercial vehicle finance if you are willing to buy pre-used trucks to expand your fleet.
  
  

• Easy eligibility criteria
  
  You can find the Commercial Vehicle Loan eligibility criteria on the official website of the bank, or you can directly visit the nearest branch of the bank to enquire about the eligibility criteria.
  
  

• Minimum documentation
  
  You can avail of commercial vehicle financing with minimal paperwork. Generally, the documents required for a Commercial Vehicle Loan include your government ID proof, address proof, bank statements, and Income Tax Returns (ITRs).
  
  

• Quick processing
  
  Bank has streamlined its loan application and disbursal process, making it relatively quick and straightforward to obtain a loan for commercial vehicles. You can easily apply for a Commercial Vehicle Loan from the convenience of your home or office.
  
  Quick loan processing allows you to get your trucks on the road faster and capitalise on the growing demand for transportation services in India.
  
  

• Flexible repayment options
  
  Bank offers flexible repayment options tailored to your business’s cash flow. This flexibility ensures that you can repay your loan without disrupting your working capital, especially during the initial stages of your business.
  
  You can even use a Commercial Vehicle Loan EMI calculator to determine your monthly EMI beforehand and plan your repayments accordingly.

• Ownership and asset building
  
  Instead of leasing or renting vehicles, you can avail loan for more than one truck to expand your fleet of trucks. Once you pay off your loan, you will become the outright owner of the vehicles, which will significantly boost your business’s net asset value.
  
  Additionally, owning your fleet of trucks can give you a competitive edge in the industry. You will have more control over your operations and can provide customised services to your clients, ultimately leading to higher profits.
  
  

To sum it up

Starting a truck business in India can be a rewarding endeavour, given the increasing demand in the country for transportation services. A Commercial Vehicle Loan can provide you with the necessary funding to overcome the initial financial hurdles associated with acquiring a fleet of trucks.

With Bank, you can avail of a vehicle loan for business at highly competitive interest rates and meet all your truck finance requirements in a hassle-free manner. 
For more details, click here with Apply now.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business. Short Term Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.