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

Blogs SUPPORT

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

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer

Tata Capital offers Machinery Loans to help businesses update their existing machinery and scale to greater heights. Keeping in mind the rapid advancements in technology, the latest machinery and equipment are necessary for the success of any business. For manufacturing businesses, procuring top-of-the-line machinery is even more crucial to ensure maximum productivity. They not only help them reduce the dependency on manpower but also allows them to meet peak season demand for their products. Businesses who need machinery finance to buy new machines can opt for a machinery loan in India.

What is a Machinery Loan?

A machinery loan is typically provided to business owners to buy new machines or equipment. Also known as machine loan finance, this is a special type of business loan that can be taken exclusively for buying new machines or upgrading existing equipment. Several lending institutions provide machinery loan for new business in India to ensure financial roadblocks don’t hinder them from achieving success.

With a Tata Capital machinery loan, you can get machinery finance of up to Rs. 90 lakhs with simple eligibility criteria and minimal documentation. Moreover, our machinery loan interest rate is among the lowest in the market, starting from just 15% per annum*.

Product Offerings

Apart from the affordable machinery loan interest rate, our loan for machinery purchase comes with the following offerings:

  • Loan Amount

    We offer customized machinery finance from Rs. 0.40 lakh to Rs. 90 lakhs so that you can meet all your requirements with ease

  • Loan Tenure

    Our machinery loans are issued for the tenures of 12 months to 60 months so that you can plan your repayment conveniently

  • Interest Rates

    Our machinery loan rate of interest is very competitive, starting from just 15% per annum*

  • Customized Products

    Our machinery loans are highly customizable. You can choose your machinery loan interest rate, amount, and tenure as per your business needs

  • No Collateral

    We do not ask for any collateral or security for providing a loan for machinery purchase

  • Multiple EMI Options

    With our machine loan finance, you can choose to pay your machinery loan EMI as per your income pattern

  • Easy Eligibility

    We believe in supporting every business owner in India, and that’s why we offer machinery loan for new businesses as well as large enterprises with simple eligibility

Features and Advantages of a Machinery Loan

Tata Capital can be your perfect machinery finance partner with a machinery and equipment loan. Here are some advantages of getting our machine loan finance for your business:

Higher Business Productivity

If you’re into a manufacturing business, you are dependent on machines for the production of your goods. By procuring modern machines with new-age technologies, you can improve your business productivity to exceptional levels. As a result, you will be able to achieve greater sales and fulfill your customers’ needs in time.

Better Quality

Newer machines and equipment not only help in improving the quantity of your production but also the quality. When you upgrade your business machinery, you can manufacture top-quality products. This helps in strengthening the trust of your customers and gaining an edge over your competitors.

Higher Profits

By improving your production quantity and quality, you can escalate your profit margins in no time. Investing in modern machines can also help you reduce the dependency on humans and minimize your production costs. Moreover, a lower machinery loan rate of interest with Tata Capital makes these machines highly affordable, further enhancing your profits.

What are the Eligibility Criteria for a Machine Loan?

Tata Capital offers machinery loan for new businesses as well as established companies. To avail of a machinery loan from us, you are required to fulfill the following eligibility criteria:

  • Your age should be at least 21 years at the time of applying for the business loan and not more than 65 years at the time of the last EMI

  • Your credit score should be at least 650 or more

  • Business should be profitable

  • Minimum 2 years business stability

  • Banking balance should be at least Rs. 5000

  • Please note that we may also ask for some other eligibility requirements at the time of loan processing.

What are the Applicable Machinery Loan Interest Rate and Charges?

At Tata Capital, we levy three types of charges on machinery loans - General Charges, Miscellaneous Charges, and Foreclosure Charges. The details of the particular charges under these three categories are mentioned below:

General Charges

Here are the general charges applicable on a Tata Capital Machinery Loan:

Interest Rate

Starts at 15% p.a.*

Processing Fee

2.50% of the loan amount + GST

Stamp Duty

As Applicable

Penal/Additional Interest Rate

3% on Overdue amount per month + GST

  • Interest Rate - It is the rate at which the interest would be charged on your machinery loan. Machinery loan rate of interest at Tata Capital starts from 15% per annum*
  • Processing Fee - It is a one-time fee charged by the lender for processing your machinery loan application. This fee is non-refundable even if the loan doesn’t get sanctioned
  • Stamp Duty - It is a legal fee that you will have to pay for the preparation of your loan agreement. It can vary from one state to another
  • Penal Interest or Additional Interest - It is the interest that will be charged over and above your existing machinery loan interest rate in the case of delayed EMI payment

Miscellaneous Charges

The table below depicts the miscellaneous charges applicable to your Tata Capital Machinery Loan:

Prepayment / Foreclosure Charges

Foreclosure charges on Term Loan Facility:
**4.5% on the principal outstanding at the time of foreclosure + Applicable Taxes

No foreclosure is allowed in first 9 months.6.5% charges if foreclosed within 9 months

 

Foreclosure charges on Top Up:
2.25% on the principal outstanding at the time of foreclosure + GST

Foreclosure charges shall be levied only if new rate is lower than existing rate.

 

**Foreclosure Charges in Dropline Facility:
4.5% on the Dropped down limit amount + Applicable taxes

No foreclosure is allowed in first 9 months.6.5%charges if foreclosed within 9 months

Processing Charges

As Applicable

Payment Instrument swapping

 

Rs. 550/-

Dishonour Charges

Rs 600 for every Cheque/ Payment Instrument Dishonor

Mandate rejection service charges

Rs. 450/-

(Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by Borrower’s bank for any reasons whatsoever.)

Annual Maintenance Charges (Dropline facility)

First Year: 0.75% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month


Subsequent Years
: 0.50% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month

Document processing charges

Rs. 1999/-

Cancellation charges

2% of the Facility amount OR

Rs. 5750/- Whichever is higher

Duplicate Repayment Schedule

Rs. 550/-

Duplicate NOC

Rs. 550/-

Statement of Account (SOA)

Customer portal – Nil

Branch walk in – Rs. 250 /-+ GST

Foreclosure Letter Charge

Customer portal – Nil

Branch walk in - Rs 199/- +GST

Post Dated Cheque Charges Rs

Charges Rs 850+GST

section 138 and section 25 filing

Rs. 3400/-

Arbitration Filing

Rs. 4000/-

Receiver Order

District Court: Rs. 4000/- and High court: Rs. 13,500/-

Notice

Rs. 125/-

Legal Notice

Rs. 300/-

Lawyer fees

(at actuals)

Execution of award

Rs. 5600/-

Note: (GST, other government taxes and levies as applicable, will be levied on all fees and charges.)

 

  • Bounce Charges - Bounce or dishonor charges are levied by the lender if your EMI gets bounced. This usually happens when you miss your EMI payment due to the lack of funds in your bank account
  • Mandate Rejection Service Charge - A mandate rejection service charge is levied if you reject any of the services rendered by your lender
  • CCOD Annual Maintenance Charge - If you have opted for a Cash Credit or Over Draft facility on your machinery loan, you might have to pay a CCOD annual maintenance charge. This charge is levied for the maintenance of your CC or OD account
  • Document Processing Charge - Your machinery loan application involves several stages of documentation, including the preparation of your loan agreement, indexing, etc. The lender charges a document processing charge for processing such documents
  • Outstation Collection Charge - If you have issued payment cheque(s) to a non-local branch, your lender may levy an outstation collection charge for the collection of your cheque(s)
  • Statement of Accounts - If you want a hard copy of your statement of accounts, i.e., the list of transactions made from your bank account during a given period, you may have to pay this charge
  • Loan Cancellation Charges - If you wish to cancel your machinery loan after its disbursal, loan cancellation charges would be applicable
  • Payment Instrument Swapping - If you wish to change or swap your payment mode with a different financial instrument, you might have to pay a payment instrument swapping charge
  • Duplicate Repayment Schedule - The first copy of your loan repayment or amortization schedule is free. However, if you want a duplicate copy of your loan repayment schedule, you will have to pay a fee for it
  • Duplicate NOC - A No Objection Certificate or NOC would be sent by your lender once you’ve repaid your entire loan amount. If you end up losing this NOC, you can apply for its duplicate copy by paying a duplicate NOC fee
  • Post-Dated Cheque Charges - If you’re issuing post-dated cheques or PDCs for EMI payments of your machinery loan, you will be charged a fee known as post-dated cheque charges

Foreclosure Charges

Below are the foreclosure charges applicable on Tata Capital Machinery Loans:

Foreclosure Charges

  • 4.5% of the principal outstanding on existing loan + GST
  • No foreclosure allowed for the first nine months

Foreclosure Charges for Top-up

  • 2.25% on the principal outstanding on the existing + GST
  • Foreclosure charges shall be levied only if the new rate is lower than the existing rate

Foreclosure Charges for CCOD

  • 4.5% on the Dropped Down limit amount + GST
  • No foreclosure is allowed for the first nine months

Foreclosure Letter Charge

  • Soft Copy – Nil
  • Branch Walk-In – Rs. 199 + GST
  • Foreclosure Charges - If you wish to make a pre-payment on your machinery loan, whether in part or full, the lender will levy a foreclosure charge. These charges are not applicable on loans taken with floating interest rates
  • Foreclosure Charges for Top-Up - If you have taken a top-up loan on your machinery loan and want to make a pre-payment on it, whether in part or full, the lender will levy a foreclosure charge for a top-up
  • Foreclosure Charges on CCOD - If you availed of a Cash Credit or Over Draft facility on your machinery loan and want to foreclose it, the lender will levy a foreclosure charge on CCOD
  • Foreclosure Letter Charge - If you want to foreclose your loan, you will have to ask for a foreclosure letter from your lender. The soft copy of this letter is usually free, but the lender may levy a foreclosure letter charge for providing a hard copy

How to Apply for a Tata Capital Machinery Loan?

How to Apply for a Tata Capital Machinery Loan?

Several lenders allow you to apply for a machinery loan in India through their websites. With Tata Capital, you can apply for a machinery and equipment loan in the following ways:

  • Branch

    Visit your nearest Tata Capital branch, and our representatives there will guide you through the entire loan application process

How to Apply for a Tata Capital Machinery Loan?

Several lenders allow you to apply for a machinery loan in India through their websites. With Tata Capital, you can apply for a machinery and equipment loan in the following ways:

  • Online

    Apply online through our website and get your loan approval instantly

  • Virtual Assistant

    Take the help of our 24x7 virtual assistant to apply anytime and from anywhere

  • Phone Call

    Call us on our customer care number at 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply through your mobile phone. You can also request a call-back

whatsapp

Avail TATA Capital loans directly from WhatsApp

More Business Loan products for you

Business Loan for professionals
Business Loan for professionals

Business Loan for professionals

At Tata Capital, we provide business loans for professionals with benefits like easy eligibility criteria, minimum documentation, and quick disbursals. 

Business Loan for women
Business Loan for women

Business Loan for women

At Tata Capital, we provide business loans for women entrepreneurs to achieve new heights in the world of business and startups.

What our customers say about us

Your services for customer satisfaction are really great. Lots of thanks for your kind consideration. Thanks a lot.

RAM SUNDAR PRASAD SINGH

Business Loan | 03 May, 2024

Great and Consistent customer care service available in Tata capital. Great job

SETHURAMAN M

Business Loan | 24 April, 2024

The process was so easy and team support and their knowledge on the product is too good.

CAFE HIND FOODS MADRAS

Business Loan | 10 April, 2024

Tata Capital is a good loan company, and its services are exceptionally fast. Overall, Tata Capital is a great company.

MAHENDRA KUMAR

Business Loan | 28 March, 2024

Very prompt response and very good service, I liked it and I am really thankful

SUMITKUMAR RAMESH CHAND JAIN

Business Loan | 04 March, 2024

Entire Service is very professionally organised. Thanks a lot.

VIVERLY EDUCATIONAL SOCIETY

Business Loan | 15 February, 2024

I am extremely happy with the services, TATA services are world class . I am proud to be part of their services

YUVARAJ SRINIVASAN LINGAPPA

Business Loan | 08 February, 2024

Dear Tata Capital finance, your service is good.

PAC METAL INDUSTRIES

Business Loan | 03 February, 2024

Thank you for your exceptionality quick resolution to my queries! Thank you so much.

GOLDSTAR HOSPITALITY

Business Loan | 31 January, 2024

Find the right Loan for you

Machinery Loans

If you’re into a manufacturing business, you may need to install the latest machinery or equipment in your factory.

You can apply for a machinery loan with us to fund the purchase of your business-related tools or equipment.

BL Machinery Loans BL Machinery Loans

MSME Loans

MSMEs are the second-largest employer in India after the agriculture sector.

To help these MSMEs grow and flourish without being affected by financial hurdles, Tata Capital offers MSME loans or SME loans at competitive interest rates.

BL MSME Loans BL MSME Loans

Overdraft Loan

If you’re unsure of the total loan amount that you may need for your business, you can avail of a business loan overdraft facility or an overdraft business loan.

With Tata Capital, you can get an OD loan for business of up to Rs. 90 lakhs at an affordable interest rate.

Overdraft Loan Overdraft Loan

Small Business Loan

Tata Capital’s small business loans are tailor-made loans to help micro and small businesses in India meet their urgent monetary requirements.

You can apply for a new small business loan online and get the funding from the comforts of your home or office.

Small Business Loan Small Business Loan