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Tata Capital > Blog > Loan for Business > How to Get a Machinery Loan in India

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How to Get a Machinery Loan in India

How to Get a Machinery Loan in India

The age-old adage is true – it takes money to make money, and nowhere is this truer than in the business world. However, it is equally true that you cannot pour out of an empty vessel. So, what can business owners, without sufficient funds, do to grow their business via advanced machinery or equipment? Here’s where lending institutions come to their rescue with their easy machinery loans, exclusively designed to help businesses bridge their financial gaps. In this article, we’ll guide you through the process of getting an easy and hassle-free machinery loan in India.

Why do I need a machinery loan?

Machinery finance is a great source of funding for businesses looking to support their fixed capital needs without having to self-finance their projects. Every project needs physical equipment to begin production and to upscale it from time to time. Sometimes, entrepreneurs aren’t able to procure advanced machinery because of a lack of machinery finance or because their business doesn’t generate enough cash to finance capital purchases.

This is where a loan for machinery purchase comes into play. It is a collateral-free loan that ensures a huge amount of capital assistance from lenders and is tax-deductible in interest payments, making it a valuable financing option for all types of enterprises – small, medium, or large.

Eligibility criteria for a machinery loan in India

All lenders have their respective eligibility criteria for lending a machinery loan in India. However, your business can easily get machinery loan finance from most of the Indian lenders if it fulfils the following requirements –

  • Your business should have been in existence for at least three years.
  • You should own at least one property under your name.
  • Your business should have filed its Income Tax Returns (ITR) for at least one year.

Some lenders approve or reject machinery loan applications based on other criteria as well such as the business owner’s age, quality of the business’ cash flows, availability of audited financial statements, etc. Details of machinery loan requirements are available on every lender’s website.

Additional Read:- 5 Things You Should Know about Machinery Loan Application Online

What are the documents needed for a machinery loan?

To approve loans for machinery purchase, officials of lending institutions are required to assess the credibility of the applicant and their business, for which they ask for a few documents as proof. Given below is the list of such documents –

  • The machinery loan application form
  • Identity Proof Documents: PAN card of business and Voter ID/passport/driver’s license/Aadhar card
  • Coloured passport-sized photographs of the applicant
  • Address Proof Documents: Telephone bill/electricity bill/lease agreement or any other valid address proof authenticated by the Government of India
  • Proof of Ownership: Documents of the residential property and business property
  • Financial Records: Income Tax Return (ITR) of one year, bank statements, audited accounting statements of the business, GST return
  • Quotation of Machinery: Proforma Invoice or quotation of the desired machinery

Ways to get a machinery loan in India

You can apply for a machinery loan in India either online or offline. The online mode requires you to visit the lender’s website and submit your documents on the portal. The offline mode requires you to visit the nearest branch of your lender and apply for the machinery loan there.

Looking for a reliable machinery loan lender? Choose India’s leading lending institution – Tata Capital. With us, you can borrow machinery finance ranging from Rs. 5 lakhs to Rs. 75 lakhs for a tenure of 12 to 36 months with interest rates starting at just 19%! We demand no collateral, and offer structured EMI options and high eligibility.

Additional Read:- How Machinery Loan Can Help You in Expanding Your Business Capacity

So, get in touch with us and apply for your machinery loan today!

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