Machinery Loan

Machinery loan is considered a type of business loan that helps startups, entrepreneurs, business owners, self-employed professionals other business entities in acquiring finance to buy new or pre-owned machinery/equipment for various business purposes. Loan for machinery purchase helps business entities in gaining more productivity while using new equipment and machinery. Increase in the production or output results in higher profits from sales and distribution. Interest rates offered by Banks/NBFCs for their machinery loan shall vary depending on business requirements. Let’s further discuss some of the popular providers of machinery loans in India.

Eligibility Criteria

• Applicant’s age must be between 21 years to 65 years at the time of loan maturity.
• Business vintage to be minimum of 2 years.
• Applicant should not have defaulted on any previous loan or credit card EMIs.
• Applicant with good credit score and repayment history.

Benefits-

• It helps to buy new equipment/machinery for new or existing business.
• Used to refurbish, modify or change existing machinery/equipment.
• To repair faulty machines or equipment or to upgrade.
• Flexible loan repayment options with easy EMIs.
• Machinery loan for startups is an additional benefit for new businesses.
• Collateral-free loans from selected NBFCs, Small Finance Banks (SFBs), etc.