India is a ripe ground for small businesses. It is estimated that there are 42.50 million Small and Medium Enterprises (SMEs) in India. Altogether, they employ millions of people, make a considerable contribution to the GDP and constitute an enormous chunk of the manufacturing sector.
Any business requires a lot of human resources, capital and physical resources to grow and expand. If you are a small business owner, each asset addition can make a massive difference to the revenues and turnover. The tricky part, however, is the financial implications of such an expansion. In order to be able to expand the business scale or increase production, the business needs investment. No small business can immediately invest that kind of money. This is where a business loan for machinery (also termed as a machinery loan) available on Finserv MARKETS can come in handy.
Referred to as machinery loan or equipment loan, such a loan is intended to facilitate the purchase of big equipment for your business. This means that the machinery will be used for productive purposes. When you buy a business loan for productive purposes, you do not need to pledge any collateral. Why? The equipment itself functions as the collateral. Therefore, the term or tenure of the loan depends on the life span of the machinery. The interest rates on your machinery loan would depend upon the strength of your business, the value of the equipment and the projected increase in revenue the equipment could bring.
Why Avail a Machinery Loan?
As stated before, a machinery loan can help boost the scale at which the business is working. For a small business, it is very important to keep the production of goods timely and grab every opportunity to expand the customer base. Now, consider a situation where, through either marketing or through word-of-mouth, your client base expands. In order to honour the commitments made, your business needs to grow in tandem with the demand. To process the demand, you may need additional machinery. But buying machinery or equipment is not as easy as walking to the grocery store. It is a massive investment and you need to consider options for financing the same. A loan without security would be a blessing at this point, wouldn’t it? That’s exactly the purpose a machinery loan would serve!
Read more to know about benefits of machinery loans
Whether it is expansion, upgradation or maintenance of the business machinery, a business loan can help. Here’s how you can avail a machinery loan without security in India:
Check your Loan Eligibility
The eligibility criteria for a business loan for machinery involves the following parameters:
- You must be an Indian citizen
- Your age should be between 26 and 66 years
- Your business should have been running for at least 3 years
- You need to furnish Income tax returns of at least 1 financial year for your business
- Goes without saying, you should be a self-employed individual
Use the Business Loan EMI calculator
The Business Loan EMI Calculator on Finserv MARKETS is an online tool that lets you compute the exact amount you’ll be liable to pay. It will factor in
- The principal loan amount that you wish to apply for
- The loan tenure for the repayment of the loan.
- You can also fill in the desired rate of interest
Usually you would make use of this tool prior to applying for the loan.
If you apply for a business loan available on Finserv MARKETS, you will find that the process is fairly simple. The only part you need to prepare in advance is documentation. However, on Finserv MARKETS, you can avail business loans with a minimum amount of documentation! Generally, you would be required to furnish your PAN Card, Aadhar Card, Passport and Driving License. As a buffer, keep other documentation ready too – these could include your GST credentials, or Sole Proprietorship declaration/copy of the Partnership Deed.
Once you have filled the loan application and furnished the proper documentation and evidence, your loan application can be approved within 3 minutes!
Get the Loan Amount
Once the verification is done, the loan is disbursed speedily within a span of 24 hours. The loan amount is directly credited in the bank account you mention in your application. You can now buy the machinery for your business and get the hustle on!
Thus, if a lack of funds is stopping you from expanding your business and scaling up production or services, you no longer need to worry about the same. With business loans available on Finserv MARKETS, you can breathe a sigh of relief. Not only do they provide a high loan limit of INR 30 lakhs for business loans, but they also make the process as smooth and speedy as possible. How? The SME loans available on Finserv MARKETS are collateral-free, offer a flexible repayment tenure of 12-60 months and you get value-added services such as financial fitness reports and customized insurance plans. You can secure a loan to purchase new machinery and equipment without worrying about the rest of your financial stability.
Also know how you can avail the new booster scheme on MSME Loan provided by the government
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.