A Machinery loan is a loan that helps Business owners, administrative, and other business individuals in attaining finance to purchase equipment and machinery for several business purposes. Such a loan is also known as a business loan.
The Online process for Machinery loan:
Before applying for a machinery loan, the borrower must have to choose and compare the banks or lenders that offered the best deal.
Step 1: The borrower must have to visit the official website of the lender, and fill out all the necessary details in the loan application form online.
Step 2: Attach all the required documents with Passport-sized photographs and proofs.
Step 3: Bank representatives will audit your application form and call you for further loan procedures.
Step 4: Once your application gets approved, you will be dispensing a sanction letter to your respective e-mail address.
Step 5: After the approval of the loan, the loan amount will be disbursed in your Bank account.
Offline process for Machinery loan:
The borrower has to personally visit the Banks or financial institutions.
An applicant should carry all the necessary documents for a machinery loan with a correctly filled application form.
Once you submit all the required documents and application forms, the bank representative will proceed with the further loan process.
After the approval of documents, Banks will disburse the loan amount in your Bank account within a few days.
Benefits of Machinery loan
It helps to purchase new machinery and equipment.
It is a security or collateral-free loan from various financial institutions or NBFCs.
It has a flexible loan payback option with suitable EMIs.
To upgrade equipment or to repair damaged machines.
A Machinery loan for a startup is an additional benefit for the executive.
It is used to modify, recondition, or change existing equipment or machinery.
To buy machinery loans for a new or existing business.
Machinery Loan EMI Calculator
A machinery loan EMI calculator is an online tool that helps in evaluating the monthly a006Dount that an applicant has to pay back. You can evaluate the amount by using an EMI calculator. The only thing that you have to do is enter the interest rate, loan amount, and loan tenure (in no. of months).
Eligibility criteria for Machinery loan
Eligibility criteria depend on several factors such as business/sales turnover, age of an applicant, total Work experience, creditworthiness and repayment history, etc.
For self-employed individuals:
The Age criteria of a self-employed individual are in between 24 to 65 years of age.
Both private and public companies are eligible for machinery loans.
The Balance sheet of a company must be audited by a registered Chartered Accountant.
Income tax should be filled for at least for the last 1 year.
The Business record must be in profit for last 3 years.
The Interest rate for Machinery loan
Up to 10years
Up to Rs. 100 crores
Up to Rs. 3 crores
Compare Interest rates and processing fees by Top Banks in India
Rate of interest
Union Bank of India
State Bank of India
Punjab National Bank
Indian Overseas Bank
Small Industries Development Bank of India (SIDBI)
Hero FinCorp Limited
Bank of Baroda
Bank Of Maharashtra
Punjab & Sind Bank
United Bank of India
Bank of India
Tata Capital Financial Services Limited
Central Bank of India
Documents required for Machinery loan
2 passport-sized photographs
Aadhar Card and Passport
Copy of PAN Card
Permanent address proof and also required if rented
ITR with computation of income of last 3 years form-16 (if file)
Sanction letter and loan schedule (if running)
Appointment letter and last 3 months' salary slips
Bank statement of salary account of last 1 year.
Order in hand
A Cheque for processing fee in Favour of bank.
Complete property documentation with MAP + ATS and Chain
Therefore, knowing the facts financeseva allows you to choose and compare the best deals for machinery loan.