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.

Apply Smoothly

Key Features of Machinery Loan

(*T&C Applied)

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.

Submit Your Details Below

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 Testimonial

I recently secured business funding through Terkar Capital, and it was a smooth and hassle-free experience. The team is knowledgeable, and they made sure everything was explained clearly. I’m really happy with the outcome and would recommend them to others.

Neelesh Sonawane

Terkar Capital provided outstanding funding solutions for my business. Their structured options were exactly what I needed, and the process was incredibly smooth. They were always available to answer my questions. I highly recommend their services.

Pratishtha Bhagwat

The team made getting an unsecured business financing incredibly easy. Their responsive and helpful team guided me through the quick process. I was initially worried about the complexities, but they simplified everything. Highly recommend Terkar Capital for financial assistance, they truly go above and beyond!