Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

Tata Capital > Blog > Loan for Business > How Machinery Loan Can Help You in Expanding Your Business Capacity

Loan for Business

How Machinery Loan Can Help You in Expanding Your Business Capacity

How Machinery Loan Can Help You in Expanding Your Business Capacity

Every business owner dreams about creating an empire out of their enterprise. However, their dreams get pinioned to the ground on account of a lack of advanced machinery or equipment. As true as it is that a business needs top-of-the-line equipment for meeting demands, it is equally true that many business owners suffer from a dearth of funds, especially those whose ventures are in their fledgling stages. However, these equipment needs can be fulfilled by applying for a machinery loan.

A machinery loan is a hassle-free way to acquire machinery without spending a huge sum of capital in a single go. Continue reading to find out how machinery loan finance can help you increase your business capacity and build the empire of your dreams.

What is a machinery loan and when is it taken?

A machinery loan is a business loan disbursed by banks and NBFCs to help businesses with their equipment needs. Any kind of business that requires physical equipment in the production of its goods/services can apply for a machinery loan. Businesses usually need machinery finance under the following circumstances –

  • A startup lacking adequate capital to invest in heavy machinery
  • A small/medium-sized business that requires additional machinery to expand its already-existing market share
  • A well-established business having insufficient cash flows to fund a new machinery plant
  • A business that needs to upgrade its equipment from time to time. For example - IT companies

Additional Read:- How Does a Machinery Loan Help You Boost Your Business?

How can a machinery loan expand my business capacity?

You can expand your business’ capacity using a machinery loan, regardless of whether your firm is in its fledgling stages or is soaring high above its competitors in the market. Machinery loans can be used for buying advanced machinery and training staff on its usage, repairing or upgrading faulty equipment, etc., thereby improving product quality, worker productivity, and turnaround time. This will, in turn, allow the business to increase its production capacity and, consequently, command a greater market share.

A machinery loan also helps businesses in ways other than capacity expansion. Here are a few of those advantages -

  • This loan is available to you on a completely collateral-free basis
  • It reduces the tax obligations of your business since the interest you pay on it is tax-deductible
  • It allows you to get credit even for machinery repairs and up-gradation
  • It makes the business more efficient by improving product quality, productivity, and turnaround time

A machinery loan is not limited to businesses in the manufacturing sector. For instance, a restaurant chain as a service provider might require kitchen appliances such as deep fryers, exhausts, utensils, etc. All kinds of equipment can be financed with a loan for machinery purchase, given that they are directly related to a business’ operations. 

Applying for a machinery loan

Need a machinery loan for new business or for expanding your existing firm? Whether you want to revamp your business, launch a new store, purchase advanced equipment, or increase working capital, Tata Capital’s machinery loans can cover all your needs. Apply for a loan for machinery purchase ranging from Rs. 5 lakhs to Rs. 75 lakhs for a tenure of 12 to 36 months with interest rates starting at just 19%.

Additional Read:- All You Need to Know About Machinery Loans in India

So, what are you waiting for? Outperform your competitors with our machinery loans today!

Leave a Reply

Your email address will not be published. Required fields are marked *