India is the backbone for many small and medium scale enterprises (SMEs). However, most enterprises drop out of their business due to a lack of strong capital that hampers their growth.
Any business needs a lot of capital, human and physical resources to grow or expand. If you are a small business owner, each of these resources can make a tremendous difference in terms of revenues and turnover.
Since, it is important to produce and deliver the goods on time to keep up with the market demand and survive in the market. Quite often, timely up-gradation and good maintenance of equipment and machinery are mandatory.
To expand the business scale or increase production, you need to make an investment. Considering the fact, that no such small business can instantly invest that kind of huge money. This is where a machinery loan for new business come in handy. The business loan is something that performs as a savior for your enterprise. With a business loan for machinery, the SMEs can get a loan to purchase machinery that can help them in growing their business.
As the word suggests, a machinery loan is simply a business loan that is intended to facilitate the purchase of big equipment for your enterprise.
Such loans are used for productive purposes where you can get a business loan for machinery/equipment purchase or upgrade purposes, you do not need to pledge any collateral or security. Want to know why? So, here is the answer; the equipment itself acts as the collateral. Therefore, one can avail a business loan without security and the tenure of the loan depends on the life cycle of the machinery.
The machinery loan interest rate would depend upon the potential of the business, the value of the equipment, and further the projected increase in revenue the equipment could bring.
The following are the basic eligibility criteria for a business loan that is used to determine borrower’s eligibility.
If you are starting a new business or project and require a loan for machinery/equipment, then make sure the project report for loan is essentially a required document.
The borrower must demonstrate the project report for their business along with all the necessary documents that have to be submitted with the project report.
The machinery loan EMI calculator on Financeseva is an online tool that lets you compute the exact amount you’ll be liable to pay. It will factor in
This tool is recommended to use before applying for such loans.
Getting a loan for machinery is easier and effortless if you meet the basic eligibility requirements. You can proceed with the following steps:
Step 1 – Check your eligibility - Before applying for a machinery loan for a new business, a borrower must first check whether they are eligible for the desired loan. With Financeseva, you can check it just by filling out a simple form.
Step 2 – Unlock loan offers - After filling out the form, click on the “Submit” button. Shortly, a dedicated representative will get in touch to explain product features and unlock loan offers based on your business profile and requirements.
Step 3 – End to end process - Financeseva will accompany you starting from the loan application to disbursal, all you need to do is keep your documents in handy to streamline the entire process. Within 5 –7 working days, the loan amount will be credited to your given bank account.
With Financeseva, you can get 80+ customized loan products for individuals and business needs. It allows you to compare, search and choose the right financial products that best suits your requirements.