Small and medium scale enterprises (SME) are vital to India’s growth. However, quite often, the lack of a strong capital for them hampers their growth. In fact, many enterprises fall apart as they’re not able to keep up with the big fishes in the industry. The machinery loan is something that acts as a savior for your enterprise. With this, the SMEs get a loan to purchase machinery that can help grow their business by a mile. And if you’re worried about the complications involved, rest assured, getting a machinery loan in India is quite easy.
How to acquire a machinery loan in India?
As the name suggests, a machinery loan is simply a term loan for machinery. Enterprises require machinery to do their tasks at a fast rate while maintaining high quality. However, these state-of-the-art machines required do not come cheap, and most SMEs will not be able to afford it with their budget. Getting a loan particularly for the machinery helps these businesses significantly as they can buy the required tools and equipment that will increase their productivity. These can be obtained for use in any sector, be it construction, manufacturing, etc.
In a lot of cases, you will be able to obtain the machinery loan without collateral. Often, they are granted for any amount and tenure period as per your requirements. This can be 5, 6, or even 7 years. The interest rates for them are moderate and decided on the basis of the CIBIL score of the client.
Although the exact features of a machinery loan will depend on the institution or bank granting it, the following are some of the most common things you can look forward to in the loan.
In order to apply for the loan, you will have to meet certain criteria. Although, this may vary depending on the issuing bank or institution as well. The common machinery loan eligibility criteria are as follows:
The first step is to understand what type of machinery you require, how much funding you will need, and other details.
Check if your company meets the eligibility, and if it doesn’t, meet them before you apply for the loan.
Once you’ve understood the eligibility, submit a proposal for the loan. This must contain information about your company, the machinery you plan on purchasing, the total amount of funds you require, etc.
Once the lender has accepted your proposal, you will have to submit the required documents. The authorities will then proceed with the verification and then sanction your loan.
Learn more about machinery loan from FAQs.
The following are the machinery loan documents you will need to submit in order to get the loan sanctioned. Apart from the below, there will be additional documentation required depending on the lending institution.
There are numerous banks and financial institutions in the country today. However, you will need to find one that is reputed and provides machinery loans. Terkar Capital is a top-reputed financial institution in India.We focus on providing our clients with the most beneficial machinery loans. Apart from this, our customer support team will help you understand the entire process as well as the documentation and eligibility related to it. All you have to do is simply contact one of the representatives and begin your loan process.
For inquiries kindly fill the form and our representative will soon get back to you.
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