Machinery Loan for New and Existing Businesses

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.

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Machinery loans can be applied via online and offline procedures as mentioned below:

Online Process

Step 1: Applicant needs to visit the official website of the bank or lender

Step 2: Fill in and submit the loan application form online

Step 3: Submit all the required documents along with proofs and photographs

Step 4: After the submission of the documents, the bank’s representative shall contact the applicant to proceed with the loan procedure

Step 5: If the application and documents are approved, the bank shall approve the loan within defined working days

Step 6: After loan approval, the money shall be disbursed to the mentioned bank account of the applicant

Offline Process

Documents Required

Machinery loan finance is also offered to small and new businesses, as well as to start-ups for the purchase of new equipment and to buy machinery items that shall help increase the productivity of their business and eventually result in their business growth and expansion. Individuals with no or less credit history can also avail machinery loans from NBFCs and MFIs at comparatively higher interest rates as compared to banks.

HDFC Bank

*Bank IRR & Annual Percent Rate (APR) offered for loans extended to individual customers.

Lendingkart Finance

TATA Capital

Ziploan

Flexiloans

Note: All the above-mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the bank, NBFC, and RBI.

Machinery loans offered by Flexiloans can be used for various manufacturing business segments that include machinery and supplies, plastic works and processing tools, metal equipment and machinery, and industrial plants.