What is a Machinery loan?
Machinery loans are normally used by small and medium enterprises, which look forward to expanding their existing business or need to invest in a new business against the borrowed amount.
For smooth operations of your business, you might land in situations where you would require some financial help. One such scenario is when you require funds for the purchase of machinery and equipment. This category of loan which allows you to finance the purchase of machinery and equipment necessary is called a machinery loan. This loan helps in funding the lease or purchase of machinery, as well as the repair of existing machinery that may have broken down.
Micro, small and medium scale manufacturing units, which require immediate financial help to buy or upgrade the existing machinery or equipment are considered to be suitable for availing machinery loan. You would also want to expand your production unit by installing more machinery or equipment. Machinery loan turns out to be the best option available.
For instance, you have a printing business and you want to install more machines to increase your productivity, expand your business and also, want to upgrade your existing machinery line-up with the latest technology, but you don’t have the necessary financial support to buy the machinery. We all know that the machines are way too expensive. You can avail a machinery loan and purchase the expensive machinery for fuelling your business requirements.
This type of loan can be used to purchase new machinery or equipment, maintenance or repair of existing machinery or equipment. Thus, increasing the overall productivity of the business.
Features of availing a Machinery Loan
- Loan up to 70% of the machinery or equipment value
- Long-term loan up to 6 years
- Unsecured machinery or equipment financing
- No guarantor or collateral required
- Flexi-loan facility
- Fast approval
Self-employed individuals and the following entities are eligible for plant and machinery loans
- Limited Liability Partnerships
- Private Limited Companies
- Limited Companies