A loan for machinery purchase is one of the best financing tools to grow your business, whether small or big. But, visiting a nearby branch of a lending institution can often be an inconvenience; however, we have good news for you. Now, you can apply for machinery finance from the comfort of your home, right at the tip of your fingers!
That’s right, getting a loan for machinery purchase has become easier than ever since digitisation. But before you begin, here are five things you need to know about while applying for a machinery loan online.
1. Online submission of details
After logging into your machinery finance lender’s website, you are required to fill in your online details, mostly about your business and identity. A few things like the ones below are required to be typed in –
- Personal details: Name, phone number, OTP, email ID, city of residence, pin code, PAN number, etc.
- Business details: Date of incorporation, company PAN, type of business, business residence, etc.
- Loan obligation details: Required tenure, loan amount, type of loan, etc.
The details may vary a little bit among lenders; however, the ones mentioned above are the most basic information required while applying for machinery loan finance.
2. Submission of documents
Along with the basic machinery loan application form, you will also be required to submit relevant documents and proofs as asked by your lender. These documents serve as authentic records of the existence of your business and impact your machinery loan eligibility. There are multiple documents that you need to present such as –
- Photo Identity Proof documents – machinery loan application form along with two passport-size photographs, copy of Voter ID/Passport/Driving License/Aadhaar Card
- Bank Statements – Copy of your certified bank statements for the previous six months
- Business Proof documents – Trade License/Establishment/Sales Tax Certificate, Ownership documents, Sole Proprietorship Declaration or certified copy of Partnership Deed, Income Tax Returns (ITR) for the last two years, Profit/Loss statement and balance sheet for the past two years
3. Credibility assessment
Once all documents have been submitted along with the application form, the lender will verify them for purposes of authentication and assessment of your business’ credit-worthiness. A great thing to note about online machinery finance is that you don’t have to provide any collateral since the desired machinery to be purchased using the machinery loan acts as the security.
Once your documents have been approved, your loan will be sanctioned following which the loan amount will be transferred to your bank account.
Additional Read:- How Does a Machinery Loan Help You Boost Your Business?
4. Prompt assistance
In case you have queries related to your machinery loan application process, you can contact your lender’s customer care support for resolution. There are many ways in which a lending institution assists a borrower, even without the use of its website. Tools like phone calling, SMS, emails, and WhatsApp calling allow the lender to render maximum support regarding your machinery loan without you having to go to the branch.
5. Provision of EMI calculator
If you want to know the direct impact of the amount and interest of your machinery loan on your business expenses, you can always use the EMI calculator provided on the lender’s website. It lets you know the EMI amount you would have to pay after taking your machinery loan amount, rate of interest, and tenure as inputs.
Additional Read:- All You Need to Know About Machinery Loans in India
Applying for a machinery loan online
Time is the new currency, especially for busy business owners like yourself. Apply online for your machinery loan with India’s leading lending institution – Tata Capital! Besides offering customised loan products, we also offer structured EMI options, high eligibility, and a completely streamlined application process. Visit our website and know more about our machinery loan finance today.