How to make a Project Report for Commercial Vehicle Loan

A Commercial Vehicle like an Auto, Delivery Van, Taxi, or Truck can help you earn a steady source of income from day one. It offers an accessible and flexible way to earn a livelihood. However, whether you buy a new or used Commercial vehicle, the upfront purchase cost is very high and this is when a Commercial Vehicle Loan can help you.

When you apply for a Commercial Vehicle Loan in any Bank in India, you will need to submit a well-made Project Report. In this article, we will guide you on:

1. Project Report Format for Commercial Vehicle Loan
2. How to Easily Make a Project Report for Commercial Vehicle Loan Online
3. Documents to be submitted to Bank for Loan Processing
4. Eligibility Criteria for Commercial Vehicle Loan

Operating a Commercial Vehicle is a business activity and hence all Banks will ask you to submit a Project Report with CMA Data. A Project Report shows your ability to repay the Loan from the Future income earned from running the vehicle. Thus, your Project Report must be well-made and accurate because any small error can hamper your chances of Loan approval.

Whether Loan is to be taken for Cab. Auto, Truck, Lorry, or any other Commercial Vehicle, your Project Report format should contain:

1. Executive Summary: In this section provide a snapshot of your business, loan amount, repayment tenure, & key ratio values such as DSCR
2. Project Investment Breakup: In this section, provide the breakup of the investment to be made, mainly the Vehicle Cost, Taxes, Insurance, & any other cost needed to purchase the Vehicle.
3. Business Profile: Elaborate on your business structure, services, target market, and competitive edges
4. Vehicle Specifications: Detail the type of commercial vehicle, its cost, and its role in your business operations
5. Financial Projections / CMA Data: Include detailed financial forecasts such as profit and loss accounts, balance sheets, and cash flow statements over the Loan repayment period
6. Ratio Calculations: Some important ratios that are to be calculated are – DSCR, Interest Coverage, TOL/TNW, Gross Profit Margin, & Net Profit margin
7. Loan Details & Repayment Schedule: Provide details of loan amount needed, proposed interest rate, repayment time,  and a Yearwise Repayment Schedule
8. Conclusion 

As seen above, a project report contains detailed financial calculations and as a result, it is not easy to make a project report on your own. Don’t worry, we will be using our advanced online software with which you will be able to make a complete & accurate project report in minutes.

Step 1: Log in to our website & click on Project Report & CMA for New Business Option (If you are already running a business then click on Project Report & CMA for Existing Business Option and follow the steps provided in this article)

Step 2: On 1st page enter your business details like business name, address, loan tenure, etc, and click next. On 2nd page enter the owner’s name, address, etc. If you are going to keep staff like driver, cleaner, etc then put the number of staff to be hired.

Step 3: On the 3rd page enter the Vehicle Cost, and other one-time expenses like road tax, license, etc. Also enter the working capital amount here which is the money needed for daily expenses like fuel, salary, repairs, etc

Step 4: On the 4th Page enter the breakup of the monthly expenses

Step 5: That’s it, the software will automatically make a complete Project Report based on the data provided. Click the download button & check your Report values. You can also edit various report values like sales, loan interest rate, etc. by clicking the edit button & download a revised report as per your or your bank’s requirements.

For any Commercial Vehicle Loan, you will need to provide:

1. KYC Documents – Documents such as PAN, Aadhar, etc
2. Address Proof –  You will need to provide any supporting for your residence address like an electricity bill, bank statement, etc. If you also have an office, then the address proof of office should also be provided
3. Project Report – A well-made Project Report as discussed in the above section of this article
4. Vehicle Quotations – A proper quotation will all cost break-up and detailed specifications of the vehicle model, make & type  In the case of a used vehicle, RC book, insurance policy & valuation report
5. Borrower Income / Networth Proofs – The Bank will also check your loan repayment capabilities by checking your income / net worth documents such as past salary certificate, income proof, IT returns, property ownership documents, etc. All documents may not apply to you but try to provide as many as possible.
6. Past Bank Statements – In most cases Bank will require bank statements of at least the last 6 months

While there are no fixed eligibility criteria, broadly the bank will ask for:

In the case of a New Commercial Vehicle Loan 

1. As an individual, your driver’s license and if you were salaried then your salary slip. If you were not employed earlier then provide trade references of fleet operators/owners & other borrowers
2. As a proprietor/company in the business of operating a fleet of vehicles, the bank will ask for the past 2 years’ financials, IT returns & proof of revenue – eg TDS certificates of vendors like OLA, UBER, Corporates, etc.
3. If you are in any other business, then past 2 years financials, IT returns, etc.

In the case of a Used Commercial Vehicle Loan

In addition to the eligibility criteria for New Vehicles stated above, for Used Vehicle, you will need:

1. Relevant work experience of at least 3 years
2. Ownership of another vehicle is also preferred

An effective project report is your key to unlocking commercial vehicle loan opportunities in India. Our advanced online software transforms this complex task into an easy & quick one. Impress your Bank with our detailed, well-prepared project report & get your Commercial Vehicle Loan approved faster.