Equipment Financing

Note: The mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the lender. GST and service tax shall be levied extra on the mentioned fee & charges.

Lenders offer multiple types of loans for equipment purchase to businesses in India. A few of them are discussed below:

• Agriculture Equipment Financing: For the purchase of farm machinery, including tractors, harvesters, irrigation systems, etc.
• Medical Equipment Loans: Offered to medical professionals for upgrading existing equipment or buying new ones to provide better healthcare facilities.
• IT and Office Equipment Loans: Offered to businesses for the purchase of electronic office equipment.
• Restaurant & Hospitality Equipment Financing: Funds kitchen appliances, refrigeration units, and service equipment.
• Construction Equipment Loans: For the purchase of construction equipment or machinery used in construction.
• Corporate Aviation equipment loan: Offered to the aviation industry for the purchase equipment used at airports and in-flight.

To be eligible for equipment loans, applicants must meet the following common eligibility criteria:

• Eligible entities: Corporations, partnerships, trusts, proprietorships, public firms, private firms, contractors (from the construction site or mining activity)
• Age: The minimum age should be 21 years when availing a loan and the maximum 65 years at the time of maturity of the loan
• Business profit: Profitable business for the last 3 years.

Also Know: Eligibility Criteria and Documents Required for Business Loan

The documents required for equipment loan may vary across lenders. However, the common documents asked by lenders for equipment loans are mentioned below:

• KYC documents
• ID proofs: Aadhar card , PAN card , Passport, Voter’s ID
• Resident address proof
• Business address proof
• Business registration proof:- Partnership deed/ Certified copies of MOA / AOA
• Last 6 months’ bank statement
• Recent passport-size photos of the applicant or co-applicant
• Last two years of income tax returns and audited financials
• Details of suppliers and machinery name
• Income Tax Return (ITR) statements for the last 2 years

• Competitive interest rates offered by banks and NBFCs
• Pre-approved offers provided by lenders to select customers
• Usually collateral-free or unsecured
• Flexible loan repayment tenure
• Tax benefits to businesses lowering their overall taxable income

Business equipment loans can be availed in order to purchase the following types of machinery and equipments:

• Compactors
• Fork Lifts
• Crushing Plants
• Drills
• Road Rollers
• Compressors
• Dozers
• Tipper/Dumpers
• Hot Mix Plants
• Wheel Loaders
• Reach Stackers
• Cranes
• Backhoe Loaders
• Excavators
• RMC Plants
• Graders
• Concrete Pumps
• Transit Mixers
• Pavers
• Rock Breakers
• DG Sets, etc.