Machinery Loan
A Machinery Loan is a type of business loan used specifically to purchase new or upgrade existing machinery and equipment. It helps manufacturing units, factories, and small to medium enterprises (SMEs) enhance production capacity, reduce manual labor, and improve efficiency — all without impacting cash flow.
🏭 Who Needs a Machinery Loan?
- Manufacturing businesses
- Construction companies
- Food processing units
- Textile and apparel industries
- Pharmaceutical plants
- Printing and packaging businesses
🔍 Key Features
- Loan Amount: Up to ₹50 lakh or more (varies by lender)
- Collateral: Often unsecured, but large loans may require collateral
- Interest Rates: Starting from 8% to 18% per annum
- Tenure: 1 to 7 years
- Quick Disbursal: Funds usually disbursed within 3–7 working days
🧾 Documents Required
For All Applicants:
- KYC documents (Aadhaar, PAN, Passport)
- Business registration proof
- Bank statements (last 6–12 months)
- Income tax returns
- Quotation/invoice for the machinery
- Financial statements (P&L, balance sheet)
✅ Eligibility Criteria
- Business must be operational for at least 1–2 years
- Stable turnover and profitability
- Good credit score (usually 650+)
- Clear repayment history on existing loans
💡 Benefits of a Machinery Loan
- Boost Productivity: Invest in modern, efficient equipment
- Preserve Working Capital: Avoid exhausting your cash reserves
- Flexible Repayment Options: Choose EMI plans that suit your business cycle
- Tax Benefits: Interest paid may be eligible for tax deductions (consult your accountant)
