Chola Commercial Vehicle Loan at a glance
| Feature | Chola Commercial Vehicle Loan |
|---|---|
| Product name | Commercial Vehicle Loan (new and used) |
| Interest rate | New: HCV/LCV 9% - 18%, MLCV 11% - 20%; Used: HCV 12% - 28%, LCV 14% - 28%, MLCV 15% - 28% p.a. |
| Rate type | Fixed |
| Maximum tenure | 84 months (new) |
| How much it funds | Up to 100% (new) |
| Processing fee | New 0.25% - 2%; used 0.25% - 3.25% (by segment) + sourcing fee |
| Pre-closure / prepayment | Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST |
Source: cholamandalam.com, checked 4 October 2026.
Chola vs other loan providers for commercial vehicle loans
Published figures from each loan provider's own website. Some loan providers publish a starting rate, some a range actually given to customers, and some only a maximum, so read the column with care and compare final offers on the APR in the Key Fact Statement.
| Loan provider | Published rate | Max tenure | Type |
|---|---|---|---|
| Federal Bank | 7.50% - 15% | — | private sector bank |
| Mahindra Finance | 8% - 25% p.a. | 60 months new; 36 months used | NBFC |
| Tata Capital | From 12% p.a. | IMHCV up to 72 months; SLCV and buses u… | NBFC |
| SBI | Repo Rate + 2.65% | 84 months | public sector bank |
| ICICI Bank | — | 12 - 60 months | private sector bank |
| Canara Bank | — | 84 EMIs | public sector bank |
| IndusInd Bank | — | 59 months | private sector bank |
| IDFC FIRST Bank | — | 60 months | private sector bank |
| Yes Bank | — | 60 months | private sector bank |
| TVS Credit | Up to 30% p.a. | 6-36 months | NBFC |
| Chola | New: HCV/LCV 9% - 18%, MLCV 11% - 20%; Used: HC… | 84 months | NBFC |
What kind of loan provider Chola is
Chola is a non-banking finance company (NBFC) regulated by the RBI. NBFCs often lend to people banks may turn down, such as first-time borrowers, farmers or self-employed people with irregular income, and reach smaller towns through dealers. In return their rates and fees are usually higher than a bank's, so they suit you best when a bank loan is not available or is much slower.
Murugappa Group's vehicle-finance-led NBFC with a large rural and semi-urban branch network
Features Chola lists for this loan
- LCV, ILCV, MHCV, HCV
- Construction equipment loans also offered (new 9% - 18%, used 12% - 28%)
Documents you will usually need
Most loan providers ask for a similar set. Chola may ask for more depending on your profile.
- Identity proof such as Aadhaar, PAN or voter ID
- Address proof for the current and permanent address
- Passport size photographs and a signed application form
- Last 6 to 12 months of bank statements
- Income tax returns, GST registration or business proof where available
- Proforma invoice or quotation from the dealer for the vehicle
- Driving licence, and permit or contract details for the vehicle's intended use
Before you sign with Chola
- Get the Key Fact Statement (KFS). RBI requires loan providers to give you a KFS before you sign, showing the interest rate, all fees, the annual percentage rate (APR) and the total amount you will repay.
- Compare the APR, not the headline rate. A low rate with a high processing fee can cost more than a slightly higher rate with no fee.
- Ask about pre-closure charges. Fixed-rate vehicle loans often carry charges for paying early; floating-rate loans to individuals cannot.
- Check what is bundled. Insurance, extended warranty or accessories added to the loan raise the amount you pay interest on. You are free to buy insurance elsewhere.
- Make sure the hypothecation is recorded and later removed. The loan provider's name is noted on the registration certificate; after the last EMI, collect the NOC and get it removed at the RTO.
Apply on cholamandalam.com or at a branch. Never pay anyone an upfront fee to "get a loan approved"; genuine loan providers deduct fees only from the loan itself.
More from Chola and similar loans
Other vehicle loans from Chola:
Buying a used car? Read the used car loan guides
A second-hand car changes the rate, the tenure and the paperwork. These guides cover rates by loan provider, car age limits, valuation, down payment and RC transfer.
Compare Chola with other loan providers
See Chola's published vehicle loan rates, fees and tenure next to another bank or NBFC.
Frequently asked questions
What is the Chola commercial vehicle loan interest rate?
Chola publishes New: HCV/LCV 9% - 18%, MLCV 11% - 20%; Used: HCV 12% - 28%, LCV 14% - 28%, MLCV 15% - 28% p.a. (checked 4 October 2026). Your own rate depends on your credit score, income, loan amount and the vehicle.
What is the maximum tenure for a Chola commercial vehicle loan?
84 months (new), as published by Chola. A longer tenure lowers the EMI but raises the total interest.
How much of the vehicle cost does Chola fund?
Up to 100% (new), according to Chola. The rest is your down payment.
What processing fee does Chola charge?
New 0.25% - 2%; used 0.25% - 3.25% (by segment) + sourcing fee. GST is usually added on top unless stated.
Can I close a Chola commercial vehicle loan early?
Full closure: 5% of principal outstanding (7-12 months from agreement), 4% after 12 months, plus GST.
Is Chola regulated?
Yes. Chola is regulated by the Reserve Bank of India as a NBFC. If a complaint is not resolved by the loan provider within 30 days, you can approach the RBI Integrated Ombudsman.
KhatuLoans is not a loan provider and is not paid by the loan providers or brands named here to rank them. Rates, fees and prices change; always confirm with the loan provider and dealer. Read our editorial policy and how we make money.