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Whether you're a large enterprise or a small business, a machinery loan provides a streamlined path for growth, ensuring you have access to the latest equipment. As part of equipment financing, the loan is secured by the purchased machinery itself, eliminating the need for additional collateral. Tailored for business needs, it's an ideal choice to upgrade machinery and enhance operations.

Features and Benefits of a Business Loan For Machinery

Let’s have a look at the various advantages of a machinery loan that helps upgrade your business operations:

Simple Application Process

Enjoy a streamlined application procedure with minimal documentation requirements for quick verification and approvals

Flexible Loan Amount

Get tailored financing options to match your machinery investment needs and borrow according to the specific requirements of your business

Competitive Interest Rates

Benefit from competitive interest rates and minimise the cost of borrowing while also exploring fixed or floating interest rate options

Customised Repayment Tenure

Choose a short or long repayment tenure as per your business requirements

Quick Disbursement

Receive swift access to funds with the rapid approval and disbursement process for timely acquisition of machinery


Get the loan without having to submit any additional collateral as the newly purchased machinery acts as security for the loan

Eligibility Criteria

Here are some common eligibility criteria you may be required to fulfil when applying for a machinery loan:

  • You must fall under the age bracket of 25 to 55 years

  • Your business must have a vintage of at least 3 years

  • ITR filing of at least 1 year is required


The requirements may differ from one lender to another. Make sure to check with the financial institution and understand the eligibility criteria for the loan.

Document Required for Machinery Loan

Here are some documents financial institutions usually require you to submit when applying for a machinery loan:

  • Identity proof: Any one of the following

    1. PAN card

    2. Aadhaar card

    3. Passport

    4. Driving licence, etc.

  • Address proof: Anyone of the following

    1. Passport

    2. Voter ID card

    3. Driving licence

    4. Utility bills, etc.

  • Passport-size photographs

  • Business proof: Anyone of the following

    1. ITR filings

    2. Trade licence

    3. Sales tax certificate, etc.

  • Income proof

  • Existing facility sanction letter

  • Original quotation of machinery you want to purchase with the loan

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Machinery Loan Interest Rates and Charges

The interest rates and charges applicable to machinery loans are as listed below:

Our Partners

Interest Rate Range

Processing Fee

Ambit Finvest 

20% onwards

Up to 3% of the loan amount

AYE Finance

28% onwards

2.5% of the loan amount + GST


12% onwards

1.5% - 2.5% of the loan amount

IIFL Finance

18% onwards

2% - 6% of the loan amount + GST


20% onwards

2% -5% of the loan amount


16% onwards

Up to 3% of the loan amount + GST


15% onwards

Up to 6% of the loan amount

Lendingkart Finance Limited

12% onwards

Up to 2.75% of the loan amount

Protium Finance Limited

1.25% p.m. onwards

1% onwards

*Disclaimer: The aforementioned details are subject to change at the lender’s discretion

How to Apply for a Machinery Loan

Follow these simple steps to apply for a machinery loan:

  • Visit the official website of the lender of your choice

  • Go to the application section

  • Fill in your personal and business details in the form

  • Choose the required loan amount and preferred tenure

  • Verify the information and submit your application

  • Following this, a representative will reach out to you for further proceedings.

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Can I get a loan for used machinery?

Yes, many lenders offer machinery loans for used equipment. However, the eligibility and terms of the loan may vary from one lender to another.

What is the maximum tenure for a machinery loan?

The maximum tenure for a machinery loan typically ranges from 5 to 7 years. Longer tenures offer flexibility in repayment, allowing you to align it with your business cash flow.

What is the maximum loan amount available for machinery loans?

The maximum loan amount usually ranges up to ₹50 Lakhs. Generally, it depends on factors like your business's financial health and the specific machinery you intend to finance.

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