Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.


A single vehicle or a fleet, large or small vehicles, new or used – a commercial vehicle loan can get you the exact vehicle that best suits your business’ operational requirements. Since these vehicles are not for your personal use, the interest rates differ from a traditional two-wheeler loan or a car loan. A good understanding of the commercial vehicle interest rates will help you decide the best way to finance your commercial vehicle.

Commercial Vehicle Loan Interest Rates and Charges

The best commercial vehicle loan interest rate will be decided on your profile at the time of loan application. Here is an overview of the interest rates and charges you can expect at SMFG India Credit:

Commercial Vehicle Loan Interest Rate

Starts at 10% per annum*

Processing Fee

Up to 2% of the loan amount

Loan Amount

Starts at INR 1 lakh*

Tenure of Loan

Up to 5 years or 60 months

Lowest EMI Per Lakh

INR 2,125 for 5 years or 60 months

Late Payment Charges

2% plus GST charged monthly (24% per annum) on the overdue amount calculated on day-to-day basis.

Duplicate NOC/NOC Revalidation

INR 295 (including GST)

Loan Cancellation Charges (Loan Cancelled Before First EMI)

Stamp duty plus INR 1500 before encashment of the loan disbursement cheque. Else loan prepayment charges apply.

Cheque/ECS Dishonoured Charges (per dishonour of cheque/ECS per presentation)

INR 300

Why are Interest Rates Crucial in Commercial Vehicle Financing?

The interest rate is one of the deciding factors of how easily you can manage to pay back your commercial vehicle loan. A lower interest rate will not only make monthly payments more affordable but also help you save money over the loan term. On the other hand, a higher interest rate means you will have to pay more over the life of the loan. It can also make it challenging to pay the monthly installments on time.

Overall, a lower commercial vehicle loan interest rate will reduce your monthly payments, leaving you with more capital for your business.

How do Interest Rates Affect the Total Cost of Borrowing & Monthly Payments?

Both the total cost of borrowing and monthly payments are directly affected by the interest rates. The higher the interest rate, the higher the borrowing cost. That is, you will be paying additional amounts in interest over the principal or the borrowed sum. This also means that you will likely be paying higher monthly payments.

Conversely, a lower interest rate will also lower the borrowing cost as you will pay less in interest charges over the term of the loan. This in turn decreases the cost of monthly payments.

Various Factors that Lenders Consider When Determining Interest Rates

The commercial vehicle loan interest rate will depend upon several factors. Here are some of the most important:

  • Loan amount
  • Inherent credit and default risk in the products
  • Professional qualifications
  • Stability in earning and employment and repayment ability
  • Nature and value of primary and collateral securities
  • Past repayment track records
  • Industry trends

Please note: The interest rate would be computed on daily balances basis and changed on monthly rest at the rate as set out in the loan agreement. The interest rate range is indicative and the final rate is arrived at basis (a) Profile of Customers (b) Tenure of the Loan (c) Geography of residence (d) Nature of Collateral (If provided (e) Prior / existing relationship with SMFG India Credit. Interest rates are subject to change at any point of time at the sole discretion of SMFG India Credit.


When applying for a commercial vehicle loan, it is essential to understand the interest rates and how they can affect your monthly payments. At SMFG India Credit, the lowest interest rate for commercial vehicles is 10%* per annum. With a range of repayment options to suit your needs, SMFG India Credit is your reliable partner on the road to a successful business. Our commercial vehicle EMI calculator will help you plan your monthly payment.

Features & Benefits

Loan Amount

Loan Amount:

SMFG India Credit’s commercial vehicle loan amount starts from INR 1 Lakh*

Easy Processing

Hassle-free loan application

We make sure your loan application process is as simple as possible with quick response time.

Wide Range of Schemes

Wide Range of Schemes

SMFG India Credit understands your needs and caters to a large and varied sector of audience.

Quick Loan Disbursal

Quick Loan Disbursal

We make sure once your loan is processed, the amount is disbursed in the quickest time possible

Convenient Repayment

Convenient Repayment

SMFG India Credit gives you the liberty to choose from a range of repayment options as per your need and convenience.

Timely Status Update

Timely Status Update

Be rest assured as SMFG India Credit makes sure you get a prompt update about your application as and when necessary

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* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.