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Tata Capital > Blog > Loan for Business > What are the Advantages of Taking a Machinery Loan in India?

Loan for Business

What are the Advantages of Taking a Machinery Loan in India?

What are the Advantages of Taking a Machinery Loan in India?

Nothing can be more detrimental to the smooth running of a business than worn down machinery. Regardless of your industrial sector, if you use any machinery, your equipment needs to be up to par to ensure maximum productivity and profit. A loan for machinery purchase provides the funds for buying new tools and helps you increase production and generate better revenue. If you are unsure about this loan, have a look at its benefits.

Provides adequate finance to upgrade your business process and output

Machines that utilize modern technologies help in the production of more units in less time. This improves your overall sales and generates higher profits. With a machinery loan, you can obtain sufficient funds to purchase state-of-the-art equipment necessary to upgrade your production setup. Thus, the loan gives you an edge over your competitors and assists in expanding the scope of your business.  

Helps in increasing your profit without increasing your capital investment

With a loan for buying machinery, you can increase your revenue without having to dip into your business capital. While the funds for expenses involved in day-to-day operations remain unaffected, the enhanced productivity from the latest machines reduces the cost of production. Thus, machine loan finance boosts your profits.

Additional Read- Things You Need to Know Before Taking a Machinery Loan

Offers unsecured credit instantly in uncomplicated terms

Unsecured Loan Agreements

There is no need to put your assets at risk and arrange for collateral to avail this loan. It is an unsecured line of credit with easy-to-understand terms and conditions. The process of application is straightforward, with most lenders offering the option to apply online. Moreover, the lenders ask for minimal documentation. There is no need for complicated paperwork to pledge collateral. This further reduces complexities.

Makes funds available instantly and ensures better cash flow

Any delay in procuring machinery due to a lack of finance might hinder productivity and prove costly for your enterprise. Fortunately, approval and disbursal of machinery finance are not time-consuming, ensuring quick access to funds for purchasing the necessary equipment. This easy availability of funds also frees up your capital that can be used in other business avenues ensuring better cash flow.

Presents flexible repayment options and long tenure

Loan providers offer structured EMI options and the flexibility to choose the option that fits into your budget. This way, the cost of your business scale-up project does not escalate. Additionally, most lenders typically issue the loan for machinery purchase with long repayment tenures, allowing you to repay the amount comfortably from your business cash flow. 

Additional Read - How to Get a Machinery Loan in India

Offers tax incentives to your business

You can deduct the interest that you have to pay towards your machine loan finance from your gross income when you compute the tax liability of your business. This deduction lowers your profit by the amount of the interest component of your loan while you benefit paying lower taxes.


Machinery loans enable you to enjoy hassle-free credit and ensure your business operations run without any obstructions.  Need a loan to purchase advanced equipment? Visit Tata Capital to apply for a machinery loan online and obtain finance customized to meet the unique requirements of your business.

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