Loan taken for the purpose of financing the new equipment for your business or for refinancing of already owned Equipment.It also helps in improving Business Productivity.
Rate of Interest in case of manufacturing sector is at present range between 12% to 15% and for Medical Equipment it varies from 10.5% to 15%.
In order to get a Machinery loan, you need to fulfill certain minimum eligibility conditions. The following factors are considered while determining your eligibility for a Machinery loan:
Machinery Loan is calculated on the basis of Net Profit, Your Present obligation and Future cash Flows from the machine you going to purchase. Banks generally funds 75% to 80% in case of New Machinery Purchase & 60% to 65% in case of Existing Machinery. However Existing Machinery should not be more than 3 years old.