A vehicle loan funds a new or used vehicle, with the vehicle itself as security and the lender's name endorsed on the registration certificate until the loan is closed. RUKKU arranges finance for private cars, two-wheelers and commercial vehicles.
For private vehicles the process is quick and the main thing worth attention is the total cost rather than the headline rate — dealer arrangements, insurance bundled into the loan and processing charges all change the real number.
Commercial vehicle finance is assessed differently. Lenders look at the route, the contract or permit behind it and your existing fleet record, because repayment depends on the vehicle earning. Namakkal and Erode have deep lorry and transport operations, and this is a large part of what we arrange here.
- Typical tenure
- 3 to 7 years
- Funding share
- Up to 85–90% for new vehicles; less for used
- Security
- The vehicle, hypothecated to the lender
- Covers
- Cars, two-wheelers, lorries, tippers, tractors, buses
Who this suits
- Documented income or, for commercial vehicles, evidence of the earning route or contract
- Valid driving licence and vehicle quotation or proforma invoice
- Acceptable repayment record on any existing vehicle finance
- For used vehicles, a vehicle within the age limit the lender allows
Documents required for vehicle loan
Vehicle documents — new vehicle
- Vehicle quotation
- Proforma invoice / dealer quotation
- Vehicle details
Vehicle documents — used vehicle
- RC / registration certificate
- Vehicle insurance
- Vehicle valuation details
- Vehicle age / vintage details
- Seller and ownership documents, where applicable
Salaried applicant documents
- Aadhaar card
- PAN card
- Latest 3 months' salary slips
- Salary certificate, if applicable
- Latest 12 months' bank statement
Business / self-employed applicant documents
- Udyam / MSME certificate, where applicable
- Business registration certificate, if applicable
- Complete ITR for the last 3 years
- GST 3B returns for the last 12 months, if applicable
- GST registration certificate
- Latest 12 months' bank statement
Commercial vehicle finance — additional documents
- Permit
- Fitness certificate
- Route details
- Other business-related documents, depending on the vehicle and lender
Exact requirements vary by lender, employment profile and loan amount. We confirm the precise list for your file before anything is submitted, so nothing comes back for a missing page.
Vehicle Loan — common questions
Yes, though the funded share is lower and most lenders cap the vehicle's age, commonly around eight to ten years at the end of the tenure. A valuation is required.
After the loan closes, the lender issues a no-objection certificate. You then apply at the RTO to have the hypothecation cancelled. Do this promptly — it becomes an obstacle when you sell.
Sometimes, when a manufacturer subsidises the rate. Often it is not, once bundled insurance and handling charges are counted. Ask for the total amount payable, not the monthly figure, and compare on that.
Tell us what you need
A loan, a building, a plot — start with a conversation. We will tell you plainly whether we can help and what it will cost.