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Machinery Loan EMI Calculator
With the help of a machinery loan EMI calculator, the evaluation of loan EMIs or monthly installments becomes easy. To get instant results, applicants are required to enter basic loan variables, such as desired loan amount, loan duration, and offered interest rate.
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs
| Bank/NBFCs | Interest Rate |
| Axis Bank | 10.75% p.a. onwards |
| Flexiloans | 1% per month onwards |
| HDB Financial Services Ltd. | 8% - 26% p.a. |
| HDFC Bank | 10.75% - 25% p.a. |
| IDFC First Bank | 10.50% p.a. onwards |
| Indifi | 1.50% per month onwards |
| Kotak Mahindra Bank | 16% - 26% p.a. |
| Lendingkart | 12% - 27% p.a. |
| Mcapital | 2% per month onwards |
| NeoGrowth Finance | 15% - 40% p.a. |
| Tata Capital | 12% p.a. onwards |
| UGRO Capital | 9% - 36% p.a. |
| Bajaj Finserv | 10% to 26% |
Advantages of using Machinery Loan EMI Calculator
Below listed are the advantages of using machinery loan EMI calculator:
- Helps in managing finances better
- Loan amount can be decided as per the repayment capability
- Supports in managing business cash flow
- Helps in overcoming urgent short-term cash requirements
- Can be accessed from anywhere via mobile, laptop, desktop or tab
Machinery Loan EMI Formula
Machinery Loan EMIs are computed with the help of below mentioned formula:
This universal formula is used by almost every financial institution to provide loan EMIs information
[P x R x (1+R) ^ N]/[(1+R) ^ (N-1)]
Here,
- P stands for the loan principal
- R stands for the rate of interest on a monthly basis
- N stands the loan repayment tenure in months
Machinery Loan – Features & Eligibility Criteria
Features:
- Interest Rate: Varies from bank to bank and depends on applicant’s profile
- Loan Amount: Depends on the machinery to be purchased (New, Pre-owned)
- Repayment Tenure: As per the loan tenor – Longer repayment tenure for higher loan amount
- Collateral: Depends on the loan amount/lender and type of loan (secured or unsecured)
Eligibility:
- Age Criteria: Minimum 21 years and maximum up to 60 years
- Business existence: Minimum 3 years in operations
- Applicants with at least last 2 years’ ITR are eligible
- Applicant should not have defaulted on previous loan
Leading Banks & NBFCs offering Machinery Loans
- Axis Bank
- Bajaj Finserv
- Bank of Maharashtra
- Central Bank of India
- Flexiloans
- HDFC Bank
- Indifi
- Lendingkart Finance
- SIDBI
- Tata Capital
- Ziploan
Usually, most of the banks demand collateral or security to be submitted by applicants to minimize their risk, if in case borrower defaults or declares bankruptcy. However, there are few NBFCs, Small Finance Banks (SFBs) and Micro Finance Institutions (MFIs) offering collateral-free machinery loans to its customers across the nation.
Before granting approval on machinery loan applications, they thoroughly check the applicant’s CIBIL score, creditworthiness, repayment capability and financial stability. The submitted documents are also scrutinized and verified by the lender for authenticity before providing any approval. If the bank or lender is satisfied with the submitted documents, then shall provide the loan approval for the disbursal.