InvestorQ : How can one repay his/her commercial vehicle loan
Pavithra Prabhakaran made post

How can one repay his/her commercial vehicle loan

Answer
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2 years ago


Of course it does! How is it really different? Whether you are trading or running a business, you are always focusing on balancing risk and returns. There is risk you need to take but ensure that the trade-off is meaningful. The same logic applies to your business and to your trading activity also. Equating your trading activity with business also gives you a better perspective of risk. What are the risks that a business focuses on? There is the market risk which arises from the competitive positioning in the industry. Then there is the regulatory risk that may arise from changes in government policy. We saw how the introduction of GST made a big difference to the fortunes of the organized sector in India. Business also looks at risk in terms of the stability of their business model. You can actually replicate the complete logic of a business risk analysis to your trading activity too. Firstly, your volatility risk is the biggest risk in trading. You face that on a daily basis during market hours. Secondly, the risk of external stimuli is also a major issue. Your risk is not only judged by what you do but also by what others do in the market. Lastly, there is the biggest risk of managing your capital in trading. Here again a very business approach helps a lot. You must risk in trading only what you can afford to lose. You are losing the trading game when you forget this basic equation.


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Ayushi Kampani answered.
2 years ago


As is the case with other commercial vehicle loans, you need to make monthly payments to the lender to repay your commercial loan. The monthly instalment comprises your principal amount and interest amount calculated on the basis of rate of interest mentioned in your loan agreement.

In case, you wish to prepay your loan, a penalty of 2% of the outstanding loan amount is levied. Do note that this penalty varies from one lender to another.

Additionally, a lender may choose to levy other charges and fees, so ensure you read your loan document very carefully before signing on it.