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Industrial Machinery Loan

Industrial Machinery Loan is a financial product designed for businesses that need to purchase or upgrade industrial machines and equipment. These loans help companies in sectors like manufacturing, construction, engineering, and textiles to acquire the necessary machinery for improving productivity, increasing production capacity, or diversifying operations.
These loans offer businesses the opportunity to obtain costly industrial equipment without needing to use their own capital, allowing them to maintain cash flow and grow their operations.

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Acceptance Criteria

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Business Type:

  • The applicant must be a registered business (sole proprietorship, partnership, or company).
  • Some lenders also offer loans to established manufacturers, construction companies, or service providers requiring large equipment.

Age of the Business:

  • The business should generally be in operation for at least 2-3 years, although some lenders offer loans to startups with a solid business plan.

Financial Stability:

  • Lenders evaluate the financial health of the business, including profit and loss statements, balance sheets, and cash flow.
  • A good credit score (750+) is usually preferred, as it reduces the lender's risk.

Collateral:

  • While the industrial machinery is the primary collateral, additional business assets may be required for large loans.
Loan Amount Offer
Loan Amount:
Up to 70-90% of the cost of the machinery or equipment.
The loan a
Rate of Interest(%)
ROI range from 8% to 16% per annum
Tenure
3 to 7 years (36 to 84 months), depending on the size of the loan and the nature of the machinery.
Documents Required for Loan

Documents Required for Industrial Machinery Loan:

  1. Identity Proof:

    • Aadhar Card, Passport, Voter ID, etc.

  2. Business Proof:

    • Business registration documents (e.g., Certificate of Incorporation, GST Registration).
    • Proof of operational existence (e.g., utility bills, lease agreements).

  3. Financial Documents:

    • Last 2-3 years' Income Tax Returns (ITR).
    • Profit & Loss Statement and Balance Sheet.
    • Bank Statements for the last 6 months.

  4. KYC Documents:

    • PAN Card, Address Proof, and other KYC documents.

  5. Machine Details:

    • Quotation/Proforma Invoice from the supplier of the machinery.
    • Machinery specifications, cost, and any warranties.

  6. Collateral Documents:

    • Documents of the machinery being financed, along with other assets of the business (if required).
Golden Features and Benifits

  • Preserve Working Capital:

    • By financing your machinery, you can preserve working capital for other essential aspects of the business such as raw materials, labor, and operational expenses.

  • Increased Productivity:

    • New, modern machinery can increase production efficiency, reduce downtime, and improve the quality of output.

  • Tax Benefits:

    • Depending on the region, businesses may get tax benefits, such as depreciation deductions on the equipment purchased through the loan.

  • Flexible Loan Amounts:

    • Lenders often offer flexible loan amounts, allowing businesses to finance multiple machines or large industrial systems.

  • Growth and Expansion:

    • With the right equipment, businesses can expand their operations, enter new markets, and handle larger orders.