Sophisticated equipment, the right software and ample machinery can boost your business’ output, help you maintain quality standards and cater to demand more efficiently. They can help you capture a greater share of the market. Since commercial equipment can be expensive, use an equipment loan to execute your business plan. You can get up to Rs. 45 lakh through the Bajaj Finserv Equipment Loan to buy, lease, maintain, repair or upgrade machinery without pledging an asset as security.
You may require equipment financing urgently to boost output and productivity or make the most of a business opportunity. If you’re wondering how you can get a hassle-free and quick equipment loan, read on.
Additional read: Improve your cash flow by taking an equipment loan
How to get an equipment loan easily and quickly
Pick an unsecured offering to avail an equipment loan urgently. This bypasses the need to submit collateral and related documents and significantly speeds up the approval process. Meet all the loan prerequisites to enjoy a truly hassle-free experience. These criteria vary for every lender, and there are a few general pointers you should follow.
Maintain a healthy credit score
Your credit score is a vital aspect of your application. In the absence of security in an unsecured loan, the lender relies on this score to gauge your creditworthiness. Your credit score gives lenders an insight into your credit management abilities, so having a high score means you may get a better loan offer. Typically, a score above 700 is recommended for an unsecured equipment loan.
Meet lender-specific eligibility criteria
It is best to pick a lender with relaxed eligibility criteria to ensure a smooth borrowing process. For instance, to avail the Bajaj Finserv Equipment Loan, you only need to be in the 25 to 55 age bracket. Additionally, your business must have filed income tax returns for the past year and should have a vintage of at least three years.
Forecast business revenue
Preparing revenue projections will help you when you’re applying for an equipment loan. It will allow you to showcase your need for additional equipment and its positive impact on your revenue. Third-party projections can also assist with making your case, so it’s a good idea to consult a financial expert when preparing a loan application.
Gather supporting documents
The documents you need to get a sanction are an extension of the eligibility criteria and must be up-to-date and accurate to avoid rejection. Generally, you need to provide KYC documents, including ID and address proofs and a certificate that proves your business’s existence. In the case of an equipment loan, you need to also provide supporting financial documents like bank statements that show your business income and relevant audit reports.
Now that you know how to get a machinery loan, you must scout the market for a lender that offers you ample sanction along with additional features so that you can make the most of this resource.
Additional read: Benefits of machinery loan
The Bajaj Finserv Machinery Loan is the perfect pick as you can get an ample sanction at an attractive interest rate. Bajaj Finserv also allows you to opt for the Flexi loan facility, which allows you to borrow multiple times from the sanction in parts. Here you pay interest only on the amount you have utilised and not the entire sanction. This helps you upgrade machinery or lease equipment affordably. Further, you can reduce your monthly instalments by up to 45% by choosing to pay interest-only EMIs and repay the principal amount at the end of the tenor. Check your pre-approved offer for a tailored machinery loan offering to take advantage of these and other features, apply for the loan, and enjoy instant approval.
Additional read: Industries that can benefit from equipment financing
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