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Top Provider of Machinery Loan

  • 07-Apr-2022
Top Provider of Machinery Loan

A machinery loan is a type of business loan that assists business owners and entrepreneurs in obtaining finance to purchase machinery or upgrade equipment for several business purposes. It is provided by various lenders, financial institutions, or NBFCs. The borrower should increase the productivity of their business with the help of a machinery loan. 

Interest rate – machinery loan 

Rate of interest  @5.50% onwards 
Loan amount  Up to 100 crores 
Repayment tenure Up to 120 months 

Interest rates of machinery loans by banks in India 

Bank name  Interest rate  
Bank of India 8.50% 
Bank Of Maharashtra 9.00% 
Indian Bank 8.75% 
Punjab National Bank 8.50% 
Union Bank of India 8.80% 
United Bank of India 8.50% 
Central bank of India 8.50% 
UCO Bank 8.70% 
Tata capital financial services limited 12.00% 
Canara bank 8.00% 
Hero FinCorp Limited 12.00% 
Bank of Baroda 9.35% 
State bank of India 8.45% 
Indian Overseas Bank 8.45% 
Punjab & Sind Bank 9.00% 
Small Industries Development Bank of India (SIDBI) 8.00% 

Top providers of machinery loans 

  • Lendingkart finance 
Rate of interest  1 to 2% per month 
Processing fee 2% of the loan amount 
Loan amount  Ranging from Rs. 50,000 to Rs. 1 crore 
Repayment tenure  Up to 12 months 
Pre-closure charges Nil  
Prepayment charges  Nil  
  • HDFC Bank 
Rate of interest  8.71% to 15.52% 
Processing fee @1.00% of the loan amount 
Stamp duty At actuals 
Collection charges of loan Nil  
Verification charges of asset Nil  
Get 100% finance Commercial construction and equipment finance 
Charges of repayment schedule  Rs. 200 
Bouncing charges of cheque Rs. 550 
Swap charges of asset Rs. 500 
Overdue EMI interest  2% per month (unpaid EMI) 
  • Ziploan 
Rate of interest  Depending on the need of business 
Loan tenure  Up to 24 months 
Processing fee 3% of the loan amount  
Loan amount Ranging from Rs. 1 lakh to Rs. 5 lakhs 
Security Not needed  
Foreclosure charges Nil  
  • Bajaj Finserv 
Rate of interest @18.00% onwards 
Processing fee Up to 2% of the loan amount 
Penal interest  @2% per month 
Loan amount  Up to Rs. 32 lakhs 
Processing fee of documents Rs. 1449 along with tax 
Bounce charges Up to Rs. 3000 
Collateral  Not needed 
  • Flexiloans 
Rate of interest Depending on the need of business 
Applicant's minimum age 21 years of age 
Business experience A minimum of 1 year 
Collateral Not needed 
Business turnover (monthly) A minimum of Rs. 2 lakhs 
Disbursal of loan Within 48 hours 
  • Bank of Maharashtra 
Rate of interest  Depending on the need of business 
Loan tenure  Up to 7 years 
Collateral Not required if the amount of loan is up to Rs. 1 crore. 
Loan amount  Up to Rs. 20 crores 
Margin  Minimum of 25% 
  • Dewan Housing Finance Corporation Limited (DHFL) 
Rate of interest  Depending on the profile of the borrower 
Processing fee  @2% loan amount with GST 
Loan tenure  Up to 72 months 
Application fee Rs. 5000 along with GST 
Collateral  Not required for the amount of loan up to Rs. 2 crores. 
Part-payment charges  Nil  
Pre-payment charges Nil  
  • Electronica Finance Ltd. 
Rate of interest  Depending on the need of business 
Repayment tenure Up to 60 months  
Disbursal of loan Within 2 to 3 days 
CIBIL Score 600 or above  
Loan amount  Up to Rs. 3 crores or 75% of the amount of equipment 
Collateral  Not needed 

Note: - The above charges, processing fees, and interest rates might be changed depending on the preference of lenders, NBFCs, or RBI.  

Advantages of a machinery loan 

  • It is also called equipment financing, as it permits us to buy machinery and upgrade equipment. 
  • It is a collateral-free loan from several lenders and NBFCs. 
  • It is also used for a startup for a new business.  
  • It helps in raising the profit without expanding the working capital
  • It has an option of flexible repayment tenure along with smooth EMIs. 
  • It utilizes renovating, modifying, redeveloping, or modernizing existing equipment. 

Steps to apply for machinery loan online 

Step 1: Visit the official website of the preferred lender. 

Step 2: Fill in the application form by entering all the required information. 

Step 3: Attach all the documents with proof and documents and submit them. 

Step 4: After submission, the representative will contact you for further procedures. 

Step 5: Once the loan is approved, the amount will be disbursed to your account.  

Therefore, apply via financeseva for the best deals. 

Also read: - Machinery Loan for New Business

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