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Machinery Loan

Technology plays a huge role in ensuring that your business grows. In order to see your businesses, expand and help you make profits; you will need the latest machineries which would ensure that you are able to build your business the way you want to. Hence, you can avail a machinery loan which allows you to either purchase new machineries or upgrade your existing machineries. You can avail a machinery loan at attractive rates of interest and flexible repayment tenure from a suitable lender in India.

Features of a machinery loan

  • You can avail loan up to Rs.50 lakh
  • The repayment tenure can range between 1 year and 3 years
  • It is very easy to apply for a machinery loan. You can visit the official website of any lender which offers machinery loan and apply for the scheme by uploading the necessary documents
  • When you avail a machinery loan from a lender without having to pledge any type of security or collateral, then you will know the exact interest rate and processing fee you will have to pay. There are EMI calculators available on the official websites of the lenders which you can use in order to know the EMI you will have to pay.
  • Once you have submitted all the documents, the lender will verify them and if they are found to be correct, the loan amount will be disbursed to your bank account within 72 hours of the time you applied for the loan
  • The response mitigated by various lenders in India is fast. The moment you apply for a loan scheme, the concerned people from the bank will analyse your application and will take a decision as soon as possible.

Best Machinery Loan

Banks
Interest Rate
Loan Amount
Tenure

State Bank of India 

9.00% to 14.99%

Up to 50 Cr

1-7 Yr
Bank of Baroda
9.00% to 14.99%
Up to 50 Cr
1-7 Yr
Union Bank of India
9.00% to 14.99%
Up to 50 Cr
1-7 Yr
Indian Bank
9.00% to 14.99%
Up to 50 Cr
1-7 Yr
Bank of India
9.00% to 14.99%
Up to 50 Cr
1-7 Yr

*The interest rate depends on loan amount availed by the customer as well as the type of loan scheme and several other factors based on the terms and conditions of the lender.

Eligibility criteria required to be fulfilled in order to avail a machinery loan

  • If you are businessman or a trader and own small and medium sized business, then you can apply for a machinery loan scheme
  • Your business must exist for at least 3 years
  • It is mandatory to have ownership of at least one property
  • Your business should have its income tax filed for at least 1 year
  • Your age should be between 25 years and 55 years
  •  

Documents required to be submitted in order to avail a machinery loan

  • Proof of identity such as PAN Card, Aadhaar, Passport, driving license, etc.
  • Proof of address such as Aadhaar, passport, etc.
  • Latest color photograph
  • KYC documents
  • Proof of income
  • Bank statement for the last 1 year
  • Exisiting facility sanction letter
  • Original and valid quotation of machine will have to be purchased

Best Machinery Loan Schemes

Banks
Key Highlights

HDFC
  • Rate: 8.71%- 15.52%
  • Processing Fee: Up to 1% of loan amount for new loan, Up to 1.5% of loan amount for used loan
  • Overdue EMI: 2% per month on unpaid EMI
  • Loan Cancellation Charges: None
  • Asset Verification Charges: None
  • Stamp Duty: Actuals
  • Cheque Bouncing Charges: INR 550
  • Repayment Schedule Charges: INR 200
  • Cheque Swap Charges: INR 500

Bajaj Finserv 
  • Rate: 18% onwards
  • Loan Amount: Up to 32 lakhs
  • Collateral Guarantor: Not needed
  • Processing Fee: Up to 2% of loan amount + taxes applicable
  • Penal Interest: Up to2% per month
  • Loan Cancellation Charges: None
  • Cheque Bouncing Charges: Up to INR 3000
  • Document Processing Charges: INR 1449 + taxes applicable

Lending kart Finance
  • Rate: 1%-2% per month
  • Loan Amount: INR 50,000-1 crore
  • Processing Fee:Up to 2% of loan amount
  • Repayment Tenure 1 month- 1 year
  • Part Payment Charges: None
  • Pre-closure Charges: Pre-closure Charges:

DHFL 
  • Rate: Subject to Applicant’s profile
  • Application Fees: INR 5000+ GST
  • Loan Amount: INR 50,000-1 crore
  • Processing Fee: Up to 2% of loan amount + GST
  • Repayment Tenure: Up to 6 years
  • Part Payment / Pre-payment charges: None
  • Collateral: Industrial machinery, not required up to INR 2 crore

Bank of Maharashtra
  • Rate: Subject to Applicant’s business requirements
  • Loan Amount: Up to 20 crore
  • Repayment Tenure: Up to 7 years
  • Collateral: Not required up to INR 1 crore
  • Margin: Minimum 25%

Electronica Finance Limited (EFL)
  • Rate: Subject to Applicant’s business requirements
  • Loan Amount: Up to 75% of the machinery value or INR 3 crore (whichever is lower)
  • Repayment Tenure: Up to 5 years
  • Disbursement: Within 3 days
  • Collateral: Not required
  • Margin: Minimum 25%
  • Credit Score: Above 600

Ziploan 
  • Rate: Subject to Applicant’s business requirements
  • Loan Amount: INR 1 lakh- 5 lakh
  • Repayment Tenure: From 12 months to 24 months
  • Processing Fee: Up to 3% of loan amount
  • Collateral: Not required
  • Foreclosure Charges: None

Flexiloans 
  • Rate: Subject to Applicant’s business requirements
  • Minimum Age: 21 years
  • Minimum Monthly Business Turnover: 12 lakh
  • Business Experience: At least 12 months
  • Disbursal Time: Within 48 hours of loan approval
  • Collateral: Not required

Reasons To Apply For Machinery Loan:

Emergency Repair or Replacements

Break down of machinery is an unforeseen situation that can hinder the smooth functioning of a business. A machinery loan can help cushion such blows.

New Machinery Purchase

Purchase of new, better quality or state of the art machinery can help one upscale their business; ensure higher output and better profit. A machinery loan can come in handy for this purpose.

Beneficial Deals

In case of sudden offers or discount prices on important machinery, a loan can provide the funds fr the purchase, ultimately ensuring better business and higher returns.

Tax Exemptions

New machinery can lead to huge tax exemptions by the show of higher depreciation.

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

A machinery loan is a type of business loan that can help borrowers in purchasing new machinery, repairing broken machinery, upscale and expand existing business. It helps in increasing productivity and profit.

In most cases a machinery loan will not need collateral, at least up to a certain amount, because the machinery itself acts as the collateral. Different lenders might have different terms, depending on the business needs and the applicant profile.

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Machinery Loan | Company

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