Equipment Leasing for MSMEs in India

MSMEs in manufacturing are largely dependent on heavy equipment. However, investing in this often comes with high upfront costs. This is where equipment leasing steps in, helping bridge the gap by offering access to essential tools without blocking working capital. So, instead of buying equipment outright, businesses can lease it.

With equipment leasing, you can strike the right balance between affordability and scalability. So, instead of draining liquidity, your company gains the equipment it needs while maintaining cash flow for daily operations, expansion, and other growth opportunities.

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Key Features of Machinery Loan

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What is Equipment Leasing?

Equipment leasing is a financing option that allows businesses to use machinery for a fixed period in exchange for regular payments. This facility helps MSMEs avoid the burden of large one-time expenses.

It is widely used in industries such as:

Manufacturing units
Construction
Healthcare and medical facilities
IT and technology-driven companies
Transportation
Energy
Telecommunication

Benefits of Equipment Leasing for MSMEs

Gives you relief from heavy investment in machinery.
Replace equipment as technology upgrades.
Lease payments may qualify as deductible business expenses.
Get equipment without waiting for years of savings.
Keep funds free for working capital, expansion, and daily operations.

Documents Required for Machine Leasing

To ensure a smooth leasing process, MSMEs typically need to provide the following:

Company registration certificate (eg- Pvt Ltd, LLP, or Partnership)
GST certificate
Promoters/owners KYC
Business KYC
Audited financial statements
Bank statements for the last 6–12 months
Income tax returns of the business
Quotation or proforma invoice of the machinery/equipment to be leased

How Does Equipment Leasing Work?

Once the machinery and financial analysis are finalized, we explore financial institutions that can arrange funding for the machines. Once the financial institution confirms comfort on both the financials and the machinery, we proceed further with the execution.

100% of the machine cost is covered under this kind of financing.
15–20% of the machine cost is taken by the financial institution as security, which is refundable at the end of the tenure.
Rental would be fixed on the total value of the machine on a Per Thousand Per Month (PTPM) basis. Generally, it ranges from ₹18–₹21 PTPM, depending on the financial health of the business.

Terkar Capital Equipment Leasing

We are a leading equipment leasing company. We are dedicated to empowering Indian MSMEs by facilitating equipment leasing solutions tailored to their business. We understand the unique challenges faced by MSMEs in acquiring essential machinery and technology, particularly the burden of heavy upfront costs. Our core mission is to bridge this gap, enabling businesses to acquire critical equipment without straining their vital working capital.

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FAQs on Equipment Leasing

Yes. We structure leases based on business cash flow and asset value rather than relying solely on credit score.

Upgrading is possible through flexible equipment leasing plans. You can return the old machinery and lease the new one, ensuring your operations stay competitive without large upfront investments.

The ownership of the leased equipment is with the lender. So it cannot be used as collateral.

Absolutely. At Terkar Capital, we facilitate bulk leasing solutions for manufacturing units, helping you scale operations while keeping capital free for other business needs.

Leasing avoids large upfront costs, preserves working capital, and provides flexibility to upgrade. So, in cases of buying machinery that needs a heavy investment, and may disturb the working capital cycle.

We Facilitate the Following Funding Instruments

Client Feedback

What our clients think about us?

B Inamdar

I am extremely pleased with the service I received. The team demonstrated a deep understanding of our business needs and provided practical, actionable insights that made a significant impact. Their professionalism and attention to detail were evident in every aspect of the process. They took the time to listen to our challenges and crafted solutions that were both innovative and effective.

24th Mile

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

C Sonawane

Thank you Terkar Capital for processing my business loan in just a few working days. Very professional & skilled team. They understood my requirements to a level that were beyond my expectations from any lending company. I strongly recommend Terkar Capital.

M Dwivedi

I got an unsecured business loan within 7 working days .their specialized experts verfied all the documents and granted me the loan .getting a business loan from terkar capital is the easiest way to get a loan.