Published on November 3, 2022

What Is A Commercial Car Loan & How Does It Work?

Commercial car loan

Commercial vehicles or CMV (commercial motor vehicles) are used specifically for commercial or business purposes to transport goods or paying passengers (e-hailing cars). A commercial vehicle is usually labelled “commercial” when it is titled or registered to a company which includes company cars and fleet vehicles.

There are 4 different types of commercial vehicles in Singapore.

  • Light Goods Vehicle (LGV)
    • Maximum Laden Weight (MLW) – Up to 3,500 kg
    • Purpose – Transport goods and 15 passengers if it is a small bus 
    • Examples of vehicles – Nissan Cabstar, Volkswagen Caddy, Toyota Hiace

  • Heavy Good Vehicle (HGV)
    • Maximum Laden Weight (MLW) – 3,501 kg to 16,000 kg
    • Purpose – Transport goods (trucks or lorries)
    • Examples – Mitsubishi Canter

  • Very Heavy Goods Vehicle (VHGV)
    • Maximum Laden Weight (MLW): More than 16,000 kg 
    • Purpose: Recovery, construction, sanitation, transport 
    • Examples – Tow trucks, cranes, mixers

  • Goods-Cum-Passenger Vehicle (GPV)
    • Maximum Laden Weight (MLW): Up to 5,000 kg – depending on their weight, they can be classified as LGVs or HGVs. 
    • Purpose: Transport goods and passengers (busses, lorries)
    • Examples – Toyota Liteace, Mitsubishi Triton

Taking on a commercial vehicle loan in Singapore from a private lender, financial institution or bank can help support your daily business operations and needs. There are a variety of interest rates depending on your lender. 


The rate you are charged also depends on 

  • Your business’ credit history
  • Type of vehicle (used or new)
  • Loan term

Based on your case, your lender might provide you with a loan that covers up to 100% of the cost of a new vehicle, but not for used vehicles. Conduct your research first by comparing different commercial vehicle loans from different lenders and select the one that best suits your budget and needs.

Learn More: 5 Tips For Repaying Your Car Loan On Time To Get Out Of Debt

Car loan application in Singapore by Swee Seng Credit

A commercial car loan in Singapore provides you with the funds needed to purchase a vehicle for your business. It is similar to a hire purchase loan, however that loan is specifically catered towards privately owned vehicles. Commercial vehicle loans are one of the most preferred options for businesses because of their benefits. Some of which include


  • Flexible loan tenure – The repayment tenure offered for commercial car loans is usually up to 5 years. This gives you a low equated monthly instalment (EMI) amount, allowing you to pay off your loan and the interest without having to worry about adding to your financial burden. 
  • No credit-score compulsion – Unlike other loans, commercial vehicle loans do not require you to have any existing credit score. Businesses that are still new in the market without a credit score can apply for a commercial vehicle loan with ease. 
  • Financing for multiple vehicles – Whether you require an individual vehicle or a fleet for your business, commercial vehicle loans for different vehicles such as trucks, buses, trailers, tankers, cars and vans are readily available. 


Looking to loan a commercial vehicle? Check Swee Seng Credit for the best financial option! We can provide you with a tailor-made solution to ease your commercial car loan application process. Contact us to know more today