Apart from the above, you can also use an equipment loan to train your workforce to use sophisticated equipment. To address your needs for the best and most efficient equipment without overstepping your budget, you can turn to an equipment loan.
Additional Read: Improve your cash flow by taking an equipment loan
How does equipment loan work?
There are two kinds of equipment loans: secured options that you can avail by pledging your new equipment as collateral or by using any other business asset as security or unsecured options that give you funds for equipment- or machinery-related needs without any security.
You can use the finances via an equipment loan to carry out any of the tasks listed above, though some equipment loans come without restrictions, so you can use it to meet other business needs too. You can then repay this loan amount along with the interest charged in the form of EMIs, as per the tenor you choose.
When you choose a longer tenor, your EMIs decrease, but you end up paying more interest overall, and when you choose a short tenor, your EMIs may be higher, but you save on interest. So, choose the right tenor based on your business revenue.
How to choose the right equipment loan?
If you do not want to risk business or personal assets, choose a collateral-free option such as the feature-packed Equipment Loan offered by Bajaj Finserv, which you can use to finance any expense related to equipment or machinery. This loan gives you access to Rs.30 lakh with which you can buy the required machinery conveniently.
To avail flexibility in terms of withdrawal and repayment, you can also choose the Bajaj Finserv Flexi Loan facility. This way, you can withdraw from your total sanction as and when a need arises, multiple times, and pay interest only on the amount you actually use. Further, you can reduce your EMIs by 45% by choosing to pay interest-only EMIs throughout the tenor and repay the principal once the tenor ends. This helps you buy equipment in instalments or spend on various machinery-related needs such as leasing, training, upgrading and more in a seamless manner.
How to avail an equipment loan
Once you choose the right equipment loan, follow these steps to avail one in a hassle-free manner and use it to fast-track your operations.
Meet the eligibility criteria to qualify
The first step to applying for an equipment loan is to check your preferred lender’s eligibility criteria. These are terms that help the lender gauge your ability to repay the borrowed amount on time. To get started on the right foot, apply with lenders like Bajaj Finserv to qualify for an Equipment Loan via simple eligibility terms as follows.
To qualify for the loan, you must be 25 to 55 years old.
Your business’ vintage should be 3 years or more.
You should have filed ITR for your business for at least a year.
Apply online and produce the required documentation
Once you meet the eligibility terms, fill out and submit an application form online. Upon verification, furnish documents like your Aadhaar card and PAN card, certificate of business existence, past 6 month’s bank account statement, and a passport-size photo in order to bag a quick sanction. Bajaj Finserv sanctions and disburses the loan amount to your account within just 72 hours of your application so you can meet urgent equipment needs easily.
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