Three-wheeler loans are financial products designed to facilitate the purchase of commercial three-wheeler vehicles. In this article, we will discuss Three-Wheeler Loans and how to calculate three-wheeler loan EMI.

In recent years, the demand for three-wheelers has seen a significant demand, particularly in the context of last-mile transportation and small-scale businesses. Whether you're a new entrepreneur or an individual looking for a convenient mode of transportation, a three-wheeler can be a cost-effective solution.

However, for many, purchasing a three-wheeler may not be financially feasible. This is where three-wheeler loans come into play, offering an easy financial solution to help individuals and businesses buy new three-wheelers in India.

Three-Wheeler Loan offers effortless credit options for purchasing a three-wheeler, whether it’s an auto-rickshaw, tempo, or e-rickshaw, for personal or commercial use. In this article, we will discuss Three-Wheeler Loans and how to calculate three-wheeler loan EMI.

What Are Three-Wheeler Loans?

Three-wheeler loans are financial products designed to facilitate the purchase of commercial three-wheeled vehicles. These vehicles, commonly used for transportation of goods or passengers, play a crucial role in urban and rural economies.

Whether you’re an individual entrepreneur, a small business owner, or a fleet operator, three-wheeler loans can help you buy new three-wheelers in India. These loans are offered by various financial institutions, including banks and non-banking financial companies (NBFCs).

Also Read: Three Wheeler Loan EMI Calculator

Features and Benefits of Three-Wheeler Loans

Funding Up to 90% of Net Invoice Price

When you apply for a three-wheeler loan, you can receive funding up to 90% of the net invoice price of the vehicle. This means you don’t need to arrange the entire amount upfront. The net invoice price is calculated after deducting any discounts offered by the manufacturer.

Interest Rates

Interest rates for three-wheeler loans vary among lenders. They are usually calculated on a reducing balance basis. The interest rate can be fixed or floating, and it significantly influences the Equated Monthly Installments (EMIs) that the borrower will pay.

Lenders offer competitive interest rates on three-wheeler loans. Shop around to find the best deal that suits your financial situation. Lower interest rates result in more affordable EMIs (Equated Monthly Installments).

Flexible Repayment Tenures

You can choose repayment tenures that suit your cash flow. Most lenders offer tenures of up to 47 months. Longer tenures result in smaller EMIs, while shorter tenures lead to quicker loan repayment.

Faster Loan Processing

Lenders understand the urgency of acquiring commercial vehicles. They strive to process three-wheeler loan applications swiftly. Quick loan approval ensures you can get your vehicle on the road without unnecessary delays. Whether you’re in an urban region or a remote village, lenders extend their services across various locations.

Prompt Payment Incentives

Some states offer a unique benefit: the 13th EMI is waived if you make prompt payments. Conditions apply, so check with your lender. This incentive encourages timely repayments and reduces the overall cost of borrowing.

Eligibility Criteria for a three-wheeler loan

To qualify for a three-wheeler loan, you typically need to meet the following criteria:

• Age: Between 21 years and 60 years.
• Address Proof: A minimum of 3 years residence at the same address.

Documentation:

• Proof of identity (Aadhar, PAN card, or commercial driving license).
• Compulsory third-party guarantee.
• Business proof or 6 months’ bank statement
• Property-related documents (for ETR customers)/ any collateral document.

Funding Availability

Three-wheeler loans are available for both new and pre-owned vehicles. Funding is provided for goods and passenger carriers manufactured by reputable OEMs (Original Equipment Manufacturers). Some of the eligible brands include:

• Bajaj Auto
• Piaggio
• Atul Auto
• Mahindra & Mahindra
• OSM
• TVS
• And many more

How To Calculate Three-Wheeler Loan EMI?

EMI stands for Equated Monthly Installment. EMI is the fixed amount paid by the borrower to the lender on a specified date each calendar month. The EMI comprises both the principal amount and the interest.

To estimate your monthly EMI, use the following formula:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

Where,

• EMI = Equated Monthly Installment
• P = Principal amount of your loan
• R = Monthly interest rate
• N = tenure of loan in months

Remember, this article provides an overview, and specific terms may vary based on the lender and your location. Always consult with financial institutions for personalized advice and accurate details.

Also Read: Commercial Three-Wheeler Loans: A Complete Guide

Three-Wheeler Loan EMI Calculator

To simplify the process of calculating EMIs, many financial institutions and online platforms provide three-wheeler loan EMI calculators. Users can input the loan amount, interest rate, and tenure into the calculator, which then instantly provides the monthly EMI amount. You can also use the cmv360 Three-Wheeler Loan EMI Calculator.

CMV360's online three-wheeler EMI calculator can give accurate estimates of three-wheeler loans. It's also easy to use, offers unlimited checks, and requires no registration to access the feature.

Steps to Use a Three-Wheeler Loan EMI Calculator:

• Visit the EMI Calculator: Access an online three-wheeler loan EMI calculator provided by a trusted financial institution or website.
• Input Loan Details: Enter the loan amount, interest rate, and repayment tenure into the respective fields.
• View Results: The calculator will generate the EMI amount along with a detailed amortization schedule, highlighting the principal and interest components of each payment.

Conclusion

Three-wheeler loans play a crucial role in enabling individuals and businesses to buy three-wheeler vehicles without affecting their budgets. Understanding the loan terms, including interest rates and repayment tenure, is essential.

Utilizing a three-wheeler loan EMI calculator can provide valuable insights into the monthly financial commitment, helping borrowers make informed decisions and manage their finances effectively. Before opting for a three-wheeler loan, it is advisable to compare offers from different lenders to find the most favourable one for your specific needs.