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.
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.
The interest rates and charges applicable to machinery loans are as listed below:
Our Partners |
Interest Rate Range |
Processing Fee |
20% onwards |
Up to 3% of the loan amount |
|
28% onwards |
2.5% of the loan amount + GST |
|
12% onwards |
1.5% - 2.5% of the loan amount |
|
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 |
|
12% onwards |
Up to 2.75% of the loan amount |
|
1.25% p.m. onwards |
1% onwards |
*Disclaimer: The aforementioned details are subject to change at the lender’s discretion
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.
Yes, many lenders offer machinery loans for used equipment. However, the eligibility and terms of the loan may vary from one lender to another.
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.
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.