Industry · 11 min read

Project Report for Commercial Vehicle Loan (Truck / Bus / Taxi) — Bank Format (2026)

Complete project report guide for commercial vehicle loans: truck, bus, taxi, auto-rickshaw, and goods carrier. Covers income projections, fuel & maintenance, DSCR, and documents for SBI/BOB/PNB.

Revenue model for trucks, buses, and taxis
Fuel, maintenance & driver cost structure
DSCR calculation for vehicle EMI

Who this guide is for

  • First truck/goods carrier owner-operators
  • Taxi fleet and school bus operators
  • Auto-rickshaw and last-mile delivery fleet
  • Existing operators adding vehicles

Bank-loan checklist (use this before you submit)

  • Vehicle quotation from authorized dealer (mandatory)
  • Route plan and freight/trip income projection
  • Fuel cost: mileage × rate × estimated kms/month
  • Driver salary, helper, and cleaner if applicable
  • Insurance, permit, and fitness certificate costs
  • Maintenance provision (tyres, service — typically 8–12% of revenue)
  • EMI calculation at bank's interest rate; DSCR ≥ 1.25
  • Down payment (margin money) — typically 15–30% of vehicle cost
  • RC/permit transfer proof for used vehicles

FAQs

How to project income for a commercial vehicle?

For goods carriers: trips/month × distance × freight rate per km. For taxis: shifts × hours × average fare (or metered km). For school buses: routes × children × monthly fee. Keep Year 1 utilization at 60–70% and ramp up. Include empty returns (dead kms) for trucks and seasonal variation.

What is the down payment for commercial vehicle loans?

Down payment (margin money) is typically 15–25% for new commercial vehicles. For used vehicles, banks require 25–35% margin. LCV (light commercial vehicles) often have lower down payments than HCVs. MUDRA can cover down payment for smaller vehicles (auto, e-rickshaw) when the total cost is within ₹10L.

Can I get MUDRA loan for a commercial vehicle?

MUDRA can finance auto-rickshaws, e-rickshaws, and small goods vehicles (e-loader, small LCV) up to ₹10 lakh under MUDRA Tarun. For larger trucks and buses, you'll need a commercial vehicle loan (term loan) from the bank. PMEGP is generally not applicable for vehicle-only loans.

What DSCR do banks need for commercial vehicle loans?

Banks typically require DSCR ≥ 1.25 for commercial vehicle loans. Since EMIs are fixed and income can vary by season and freight rate, banks look carefully at realistic income assumptions. Conservative income projections with a clear route/customer plan are essential.

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