A 100 Crore Machine Loan Without Security refers to a large-value machinery or equipment loan provided without collateral, backed instead by:
A system where:
Multiple businesses mutually guarantee each other’s loan obligations
A group jointly shares the credit risk
Strong financials of the group substitute the need for physical security
This model is increasingly used by:
Large manufacturing units
Industrial groups
Infrastructure & engineering companies
Consortium-led industrial clusters
Banks and NBFCs provide high-ticket loans through:
CGTMSE for MSMEs (up to limits)
Group guarantee / mutual corporate guarantee
Promoter guarantee
Cashflow-based underwriting
This method allows zero collateral but requires:
Strong financial statements
Proven repayment history
Group stability
| Feature | Description |
|---|---|
| Loan Amount | Up to ?100 Crore (based on group turnover + financials) |
| Security Required | No collateral — backed by Mutual Guarantee / Group Guarantee |
| Loan Type | Machinery Loan / Capex Loan / Term Loan |
| Tenure | 5–10 years depending on lender |
| Interest Rate | 9%–14% (credit-based) |
| Applicable Sectors | Manufacturing, Industrial Units, Engineering, Pharma, Infrastructure |
| Eligibility | Group net worth, stable cash flows, audited financials |
| Underwriting Basis | Cash flow–based lending, credit rating, group guarantee strength |
| Processing Time | 30–45 days |
| Guarantee Structure | Cross corporate guarantee + promoter guarantee |
| Repayment | EMI / structured repayment based on project |
| Merit | Explanation |
|---|---|
| No Collateral Required | No need to mortgage property, land, or assets |
| Funds up to ?100 Cr | High-ticket financing for expansion or new machinery |
| Faster Approval for Strong Groups | Banks rely on cash flows & group guarantees |
| Better Cash Flow Management | No asset lock-in ? improves liquidity |
| Enhances Business Capacity | Helps scale operations quickly |
| Tax Benefits | Interest and depreciation on machinery are tax-deductible |
| Demerit | Explanation |
|---|---|
| Available Only for Strong Groups | Not suitable for small or weak financial profiles |
| Mutual Guarantee Risk | If 1 member defaults ? all group members are liable |
| Higher Interest Rate | Slightly higher than secured loans |
| Strict Financial Scrutiny | Lenders require audited statements, compliance, credit reports |
| Personal/Corporate Guarantee Mandatory | Promoters usually must provide guarantees |
| Exposure Cap | 100 Cr limit depends on the group’s aggregate turnover & rating |
“In today’s episode, we decode how businesses can secure a ?100 Crore Machine Loan without offering any collateral.
Yes—zero security. This is made possible through a unique structure called Mutual Guarantee, where multiple companies in a group guarantee each other’s obligations. Banks rely on the group’s financial strength, cashflows, and market reputation instead of land or property security. We’ll break down how underwriting works, what lenders check, and whether this model is safe for your business.”
A high-value term loan provided without collateral, backed solely by group / mutual guarantees and company financials.
A group of companies mutually guarantees each other’s loan
Lender assumes reduced risk
Enables high-ticket unsecured lending
You must have:
Strong audited financials
Minimum ?300–500 Cr group turnover
Profitable balance sheets
Good credit history
Strong promoter background
3–5 years audited financials
GST returns
Machine quotation
Project report / CMA data
Bank statements
KYC of company & promoters
Corporate guarantee documents
No physical security — but:
Corporate guarantees
Personal guarantees
Mutual group guarantees
are usually required.
Generally 9% – 14%, depending on:
Credit rating
Group financials
Lender type (Bank vs NBFC)
All mutual guarantors become jointly liable.
This is why lenders trust the structure.
MSMEs can get collateral-free loans but not up to 100 Cr.
Large-cap brands & manufacturing groups typically qualify for such large limits.
Private sector banks
Large NBFCs
Development financial institutions
Asset finance companies
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