The rapid shift towards sustainable transportation has increased the demand for commercial electric vehicles, driven by the need to reduce carbon emissions, increasing fuel efficiency and cost savings. Electric commercial vehicles have numerous proven and reliable benefits such as lower operational costs, increased efficiency, and longer lifespan over traditional fuel-powered vehicles. The transition, however, to electric commercial vehicles can be a challenging point for businesses because of its initial high cost for the battery technology and setting up the charging infrastructure. At this point financing options play a very important role, as it allows businesses, especially SMEs (Small and Medium-Sized Enterprises) to preserve capital and maintain healthy cash flow at the same time. With the availability of various financing options like EV loans, leases, EV finance, and various rental programs the cost of transitioning to commercial electric vehicles can be managed effortlessly. These EV financing options can provide the necessary EV loan to purchase electric vehicles and charging infrastructure while spreading the cost over a longer period.

Financing EVs

What Exactly is Commercial Vehicle Loan?

An electric commercial vehicle loan, also known as an EV auto loan, is a loan specifically designed for businesses or individuals who need electric vehicles for commercial purposes. This loan is used to finance the purchase of commercial vehicles such as electric autos, trucks, vans, or any other vehicles that are majorly used in business activities such as transporting goods, providing service, etc. The key advantage of an EV auto loan is the availability of attractive financing options for different types of commercial vehicles. These auto loans are generally provided by banks, specialized lenders, or credit unions which help the business acquire electric autos, trucks, or any other commercial vehicles, with the necessary funds. The auto loan amount covers the cost of the EV which the borrower repays through regular installments along with interest, over a prearranged period of time.

Different Types of Commercial Vehicle Loans in India

A commercial vehicle loan is a specialized loan that caters to small businesses and transport companies that need cargo vehicles to carry out their business activities such as transportation, delivery, providing services, etc. The key advantage of a commercial vehicle loan is the availability of financing options for different types of commercial vehicles, including both new as well as used ones. These loans provide the necessary funds to acquire different commercial vehicles like trucks, vans, electric vehicles, etc for business needs. Customized funding solutions based on the borrower's requirements and financial situation are a remarkable feature as the lenders offer competitive interest rates, making it more affordable for businesses to finance their commercial vehicle purchases. This enables businesses to conserve their working capital and allocate it for other operational expenses. Additionally, lenders understand the time sensitivity involved in acquiring commercial vehicles for business purposes, so they accelerate the loan approval process. This allows businesses to acquire the vehicles they need quickly, ensuring minimal interruption to their operations.

New Commercial Vehicle Loans:

This type of loan caters to financing the purchase of brand-new commercial vehicles. These loans are specifically made for businesses looking to add new vehicles to their fleet or expand their operations. Lenders provide competitive interest rates and favorable terms to attract borrowers offering new commercial vehicle loans.

Used Commercial Vehicle Loans:

This category of loans are designed to support businesses in acquiring pre-owned vehicles allowing businesses to access a wider range of vehicles at lower price points compared to new ones. After evaluating factors such as the age, mileage, and condition of the vehicle, the loan amount and interest rate are determined.

Refinancing Commercial Vehicles:

This involves replacing an existing electric vehicle loan with a new loan to obtain better loan terms, such as lower interest rates or an extended duration of repayment. This option allows businesses to optimize their financing and reduce their monthly expenses.

Key Factors to Consider in Electric Commercial Vehicle Finance from Turno

Total Cost of Ownership (TCO):

Evaluate the total cost of owning an electric commercial vehicle compared to traditional diesel/petrol vehicles. Electric vehicles may have a higher upfront cost but they often have lower operational and maintenance costs over the vehicle's lifespan. Consider factors such as fuel savings, reduced maintenance costs, and eligible government incentives.

Financial Incentives:

Research and take advantage of any financial incentives or grants available for electric commercial vehicles. Government and local authorities offer incentives to promote the adoption of electric vehicles, such as tax benefits, or subsidies. These incentives can help offset the higher upfront cost and make electric vehicle financing more affordable.

Resale Value:

Consider the potential resale value of the electric commercial vehicle. As the electric vehicle market continues to evolve, resale values may vary. Evaluate factors such as technological advancements, battery improvements, and market demand for used electric vehicles to gauge the potential resale value.

Financing Options:

Explore different financing options available for electric commercial vehicles. Contact lenders or financial institutions that specialize in electric vehicle financing to understand the terms, interest rates, and repayment options. Compare different offers to find the most suitable financing solution for your business.

Interest rates:

Turno offers very low-interest rates. This is competitive with other commercial vehicle financing options, but it's important to compare rates from different lenders before you make a decision.

Down payment:

Turno requires a down payment of 49,999/- only. This is lower than the down payment required for some other commercial vehicle financing options, but it's still important to factor it into your budget.

Term length:

Turno offers terms of up to 4 years. This gives you more flexibility to choose a repayment schedule that fits your budget.

Prepayment penalty:

Turno does not charge a prepayment penalty. This means that you can pay off your loan early without having to pay any additional fees.

Guaranteed resale value:

Turno offers a guaranteed resale value on used electric vehicles. This means that you can be confident that you will be able to sell your vehicle for a certain amount of money at the end of the loan term.

Eligibility Criteria and Documentation: 

Ensure you meet the eligibility criteria and have the required documentation in order to streamline the loan application process.

Commercial Vehicle Loan Interest Rates

In 2023, interest rates for commercial vehicle loans that Turno offers typically range from 10% to 15% per year. The specific rate you're offered depends on factors like your credit score, the type of vehicle you're financing, and the loan term. Used commercial vehicles usually have higher interest rates due to perceived higher risk.

How To secure a lower interest rate:

Get pre-approved: Determine how much you can afford and what interest rate you qualify for before vehicle shopping.

Turno Interest Rate: If you compare interest rates from different lenders Turno provides the best rates in the market.

Improve your credit score: A good credit score will help you secure a lower interest rate.

Consider a shorter-term loan: Shorter-term loans often have lower interest rates than longer-term ones.

Documentation requirements:

1. Proof of identity

PAN card, Aadhaar card, etc.

2. Proof of residence

Electricity bill, water bill, etc.

3. Proof of income

Salary slip, tax returns, etc.

4. Business documents

Company registration certificate, GST registration certificate, etc.

5. Vehicle documents

Registration certificate, insurance certificate, etc.

Additional documents:

For self-employed individuals

  • Business plan,

  • Financial statements

  • Bank statements.

For partnerships

  • Partnership deed

  • Bank statements of all partners

For companies

  • Company registration certificate

  • Board Resolution

  • Bank statements of the company.

Let's discuss some of the key benefits of a commercial vehicle loan EMI calculator:

Simplicity: An EMI calculator simplifies the process of calculating monthly loan installments. You can simply enter the loan amount, interest rate, and term of the loan, and the calculator will do the rest. 

Accuracy: A commercial vehicle loan calculator is accurate. The calculator uses the latest interest rates and loan terms, so you can be sure that your monthly installments are accurate. 

Ease of use: The calculator is a web-based tool, and hence can be accessed from anywhere. You can also use the calculator on your mobile phone or tablet.

Comparison: An EMI calculator can be used to compare different loan options. This is helpful if you are considering multiple EV financing companies or loan terms. The calculator will show you how different loan options will affect your monthly installments, so you can choose the option that is best for you.

Additional benefits:

  • It can help you budget your finances hence, late payments and penalties can be avoided.

  • By comparing different ev loan options, you can find the one that has the lowest interest rate and save money in the long run.

  • It can help you make informed decisions about debt repayment so that you can avoid defaulting on the loan.


Commercial vehicle loans are specifically designed to suit the needs of businesses acquiring electric commercial vehicles. The flexibility of customized loan terms based on borrowers' requirements and financial situation allows them to choose repayment options that are convenient for their cash flow and budget plans. EV financing companies provide solutions with advantages such as low-interest rates, fast processing, and suitability for acquiring electric commercial vehicles, thereby enabling businesses to efficiently acquire the vehicles they need to support their operations.