What is Machinery/Equipment Loan?
- Applicant must be between 21 years and 60 years of age to apply for a equipment loan
- Business vintage to be at least 3 years old
- Company is projected to be successful in the last 2 years
- Last 2 years of ITR proof
- Machinery loan without security shall not be issued by any bank
- Indian citizen without a criminal record
- Applicant should not have defaulted to a previous loans Providers of Machinery Loan?
When it comes to availing of the machinery loan you have 2 options: Banks or NBFC’s. It’s your choice which lender to choose.
- Banks – To apply for loans in commercial banks, you must be very careful about the documents you send, as the approval process is very stringent. They review every aspect of your application in due time and have a strict background verification process. The entire loan disbursement process can take up to 2 months. Therefore, if you want to apply with a bank, keep a buffer on the timeline.
- Non – Banking Financial Company (NBFC): these are recommended choices for small businesses as NBFCs have stronger approval policies and are open to unusual sectors and risk forms. They seem to understand better the value of timely cash flow, and the borrowing process takes a much shorter period than a commercial bank.
Step 1: Applicant must visit the bank or lender’s official website.Stage 2: Fill in and submit the application form online.
Step 3: send all necessary documents along with proofs and photographs.
Step 4: Upon submission of documentation, the bank representative shall contact the borrower to continue with the loan process.
Step 5: If the application and documentation are accepted, the bank shall authorize the loan within a fixed working day.
Step 6: After acceptance of the loan, the money shall be paid out to the applicant’s bank account.
Step 1: Applicants are expected to visit the bank or financial institution directly for the processing of offline loans.Step 2: Applicant shall submit all relevant documents along with the properly completed application form.
Step 3: Upon submission of the application form and documentation, the bank’s representative shall continue with the loan process.
Step 4: If all the documents have been authorized, the bank will authorize the loan and disburse the amount of the loan within the prescribed working days.
Machinery loans are also provided to start-ups for the procurement of new machinery and to purchase equipment that will help improve the competitiveness of their business and ultimately result in their business development and expansion. Individuals with little or less credit history can also take advantage of machinery loans from NBFCs and MFIs at relatively higher interest rates than banks.
Apply now for Machinery Loan,
Feel free to consult us for further queries!