Commonly Asked Questions Around Machinery & Equipment Loans

1. This loan is collateral-free, which means that you don’t have to pledge business assets in exchange for funds.

2. A machinery loan provides the ideal solution for a business, as the cash flow is not affected in the short term. Often, a glitch in the manufacturing process requires high capital expenditure, an expense that is not provided for in your cash flow. A machinery loan helps the business tide over this short-term cash crunch and ensures that it continues its work with optimal efficiency.

3. A machinery loan gives you access to up to Rs.30 lakh with minimal documentation, easy eligibility and a flexible tenor. Your business can enjoy all this, along with a nominal rate of interest.

4. It also helps the net asset value of your business increase as more equipment is added to the books

2. What is the maximum amount of loan I can get?

When you opt for a machinery loan, you can usually avail up to Rs.30 lakh.

3. Do I have to plan for collateral?

There is no need to pledge any collateral for the machinery loan. This makes the application process hassle-free and convenient. It also makes it easier and faster for you to apply, while also taking your lender less time to approve your application as it doesn’t need to assess any collateral.

Additional Read: How to Choose The Right Machinery Supplier

4. The previous year’s turnover should be audited by a chartered accountant

5.What documents do I need to submit?

You need to submit the following documents:

1. Filled form and passport size photographs

2. KYC documents

3. Certificate of the existence of business

4. Financial documents pertaining to the business

5. Bank account statements for the previous months

6.How long does it take for the money to be disbursed?

With a fast disbursal time of 48 hours, you can secure finance for your new machinery quickly.
Now that you know more about the features of a machinery loan, it’s time to check your business needs and see how this loan can help you.