What are the benefits of a Machinery Loan for a New Business?

A machinery loan is a type of business loan designed to help entrepreneurs, business owners and other business establishments easily acquiring finance for the purchase of machinery or equipment required for business purposes. This loan helps businesses in gaining additional productivity through the usage of new equipment and machinery. With an increase in production or output, businesses can further their profits through sales and distribution.

What are the Eligibility Criteria for Machinery Loan?

• Applicant should be at least 21 years of age and a maximum of 65 years of age
• Business should be a minimum of 2 years old
• Last 2 years’ ITR required to avail this loan
• Last 12 months’ bank statement required for this loan
• No defaults on any previous loans should be listed against the borrower

What are the Benefits of Machinery Loan?

• Also known as equipment financing, it allows the easy purchase of new equipment/machinery
• Allows refurbishment, modification or change of existing machinery/equipment
• Can be used for the repair of faulty machines or equipment 
• Flexible loan repayment options and easy EMIs
• Can be used as a working capital loan 
• Machinery loan for new business is an additional benefit while starting off
• Collateral free loan from a few NBFCs, Small Finance banks, etc.

What are the Documents Required for Machinery Loan?

• Duly filled application form with latest passport-sized photographs
• KYC documents of the applicants and co-applicants, if applicable
• Proof of income
• Last 1 years’ bank statement
• Current facility sanction letter
• Original and valid quotation of the machine(s) that need to be purchased
• Additional documents, if any and as required by the bank