Machinery Loan

What is a machinery loan?

 

A machinery loan allows you to finance the purchase of machinery and equipment essential for smooth operations of your business. It helps in funding the lease or purchase of new machinery, as well as the repair of existing machinery that may have broken down.

 

Machinery loans are suitable for micro, small and medium scale manufacturing units, which are in need of urgent capital to buy and upgrade equipment and also for increasing overall productivity. The loan offers much-needed support to any manufacturing business.

 

For instance, if you have a printing business and you had to purchase printing machinery with the latest technology and expand your business, but don't have the necessary funds to buy the expensive machinery. You can approach the financial institution for machinery loan and can purchase the machinery for fuelling your business requirements.

 

Machinery loan can be used to support new equipment purchase and financing or for maintenance and repair of existing equipment thereby increasing the overall productivity for the business.

 

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Eligibility & Documents Required

 

When applying for a machinery loan, make sure you meet the eligibility requirements below:

  • You must be at least 25 years old and less than 65 years
  • Your business must be profitable for 3 consecutive financial years
  • Your turnover needs to show an upward trend
  • Your balance sheet must be audited by a registered chartered accountant

Also, make sure that you have all the relevant supporting documents listed below before you apply.

  • Know Your Customer (KYC) Documents - Address, Age & Nationality proofs like Passport, Aadhaar, PAN card and other documents of the Directors or Partners.
  • Proof of Business (ITR/Trade License/Establishment/Sales Tax Certificate)
  • Sole Proprietorship Declaration or certified copy of Partnership Deed
  • Certified true copy of Memorandum and Articles of Association
  • Bank statements for last 6 months
  • Income Tax Returns along with computation for last 3 years
  • Audited Financials for Last 2 years
  • Qualification Documents - Like degrees of graduation & higher education

How to Apply for a Machinery Loan?

 

You can apply for our equipment loans in 3 easy steps:

  • Check your loan eligibility
  • Select the loan amount and tenure
  • Submit your application and supporting documents

Once we receive a completed form and the relevant documents, our business loans are usually disbursed in 3 days.

 

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Fees and Charges

 

The interest rate to be charged on a machinery loan varies from case to case depending on the facilities offered, the financial position of the borrower, etc. Exact details can be provided by your relationship officers. Here is a list of the processing fees and charges.

 

Why Tata Capital?

 

If you're looking for easy, hassle-free machinery loans that offer you complete transparency and convenient repayment options, opt for Tata Capital equipment loans. Our expertise in this field and association with leading equipment manufacturers in India, enable us to offer you customized solutions for your equipment financing needs. We provide multiple benefits to our customers such as:

  • Transparent Interest Rates: Business Loan interest rates are dependent on multiple factors such as borrower credentials, the tenure of the loan, market dynamics, cost of funds, etc. Tata Capital provides complete transparency with respect to your interest rates so you can plan your financials better.
  • Multiple Loan Programs: Tata Capital offers a good range of loan programs, assessed by a team of experts based on banking, cash profit and turnover. Even qualified professionals such as doctors can apply for a suitable business loan.
  • Hassle-free Loan Disbursement: With Tata Capital business loans, you get to benefit from an easy and quick loan disbursement. Once you submit a duly-filled application along with relevant supporting documents, business loans are usually approved within 3 days.
  • Flexi EMIs: Tata Capital's Flexi EMI option allows you to select a repayment method that suits you best. You can even opt for increasing your EMIs each year, or reduce them gradually or even repay your loan periodically to reduce your EMI.

 

FAQs

 

Q: What is the maximum machinery loan you are eligible for?

A: You can avail a maximum funding up to 100% of your equipment value.

 

Q: What is the typical tenure for machinery loans?

A: Loan tenure varies from 3 months to 5 years.

 

Q: How much EMI do I need to pay?

A: You can use our business loan EMI calculator to calculate the EMI you need to pay based on your convenience.