
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:
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 allow 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.
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 16% per annum*.
Apart from the affordable machinery loan interest rate, our loan for machinery purchase comes with the following offerings:
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:
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 675 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.
When applying for a machinery loan, you must produce the following documents:
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:
Type of Fee | Applicable Charges |
---|---|
Interest Rate |
Starts at 16% p.a.* |
Processing Fee |
Upto 4% of the loan amount |
Stamp Duty |
As Applicable |
Penal/Additional Interest Rate |
3% on Overdue amount per month |
The table below depicts the miscellaneous charges applicable to your Tata Capital Machinery Loan:
Type of Fee | Applicable Charges |
---|---|
Prepayment / Foreclosure Charges |
Foreclosure charges on Term Loan Facility:
Part-Prepayment/ Prepayment/ Foreclosure Charges in Hybrid Term Loan:
|
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 (Hybrid Term Loan) |
First Year: 1% or 1000 whichever is higher per year will be deducted from the Facility and shall be payable at the end of the 13th month Second Year: 0.75% or 1000 whichever is higher per year will be deducted from the Facility and shall be payable at the end of the 13th month Subsequent years: 0.5% or 1000 whichever is higher per year will be deducted from the Facility 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 /- |
Foreclosure Letter Charge |
Customer portal – Nil Branch walk in - Rs 199/- |
Post Dated Cheque Charges Rs |
Charges Rs 850 |
section 138 and section 25 filing |
At Actual |
Arbitration Filing |
At Actual |
Receiver Order |
At Actual |
Notice |
At Actual |
Legal Notice |
At Actual |
Lawyer fees |
At Actual |
Execution of award |
At Actual |
Note:
Below are the foreclosure charges applicable on Tata Capital Machinery Loans:
Type of Fee | Applicable Charges |
---|---|
Part-Prepayment/ Prepayment/ Foreclosure Charges |
Foreclosure charges on Term Loan Facility:
Part-Prepayment/ Prepayment/ Foreclosure Charges in Hybrid Term 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:
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:
Your machinery loan tenure depends on how much time you need to repay the loan. Tenures are available on a short basis, such as 36 months as well as a long basis, such as ten years.
A loan for machinery work is similar to other financial loans. This specific category caters to loans for servicing or procuring machinery and has eligibility criteria for the business to qualify for.
Similar to other loans, machinery loans have similar documentation requirements. They are:
A loan for MSME machinery is granted to businesses willing to service or purchase new equipment. The main requirement to qualify for this loan is to come under the qualification as a micro, small or medium enterprise.
Since new equipment can cost a lot of money, you might need money to use for daily operations rather than buy new equipment. A loan for machinery can help you focus on buying equipment without having to sacrifice your daily operations, which is why it makes good financial sense.
As a machinery loan comes under a business loan, it can be moved to a different lender to avail of better interest rates.
Because machinery loans offer collateral through the equipment, the interest rates are lower than other types of loans. This acts as a sense of security for the lender in case of payment defaults.
Yes, you can avail of a business loan as part of the MSME enterprises. You will only have to meet the requirements set by the institution to avail of a loan.
Yes, there are various lenders offering loans for new machinery purchases. However, they would all have varying eligibility criteria, so it’s important to go through them before choosing a lender.
Yes, you can buy new machinery with a loan. Lenders offer machinery loans to enterprises willing to purchase new equipment for their operations.