1 min read
25 May 2021

Sophisticated equipment, the right software and ample machinery can boost your business’ output, help you maintain quality standards and cater to demand more efficiently. On the whole, they can help you capture a greater share of the market. Since commercial equipment can be expensive, you can use an equipment loan to execute your business plan. You can get up to Rs. 45 lakh via the Bajaj Finserv Equipment Loan to buy, lease, maintain, repair or upgrade machinery without pledging an asset as security.

To boost business output and productivity or make the most of a business opportunity, you may require equipment financing urgently. If you’re wondering, ‘How do I get equipment loan in such a situation’, read on.

Additional Read: Improve your cash flow by taking an equipment loan

How to get equipment loan easily and quickly

To avail an equipment loan swiftly, ensure you pick an unsecured offering. This bypasses the need to submit collateral and related documents, and significantly speeds up the approval process. To enjoy a truly hassle-free experience, meet all loan prerequisites. While these vary as per the lender, there are few general pointers that you should follow. These are as follows.

Maintain a healthy credit score

Your credit score is one of the most vital aspects of your application. This is especially true for an unsecured loan, as in the absence of security, the lender relies on your score to gauge your creditworthiness. Your credit score gives lenders an insight into your credit management abilities, and so having a high score means that you may get a better loan deal. Typically, for an unsecured equipment loan, it is recommended that you maintain a score that’s over 700.

Meet lender-specific eligibility criteria

Meeting the lender’s eligibility criteria is of prime importance and to ensure a smooth borrowing process, it’s best to pick a lender that has relaxed eligibility criteria. For instance, to avail the Bajaj Finserv Equipment Loan, you only need to be 25–55 years old. Additionally, your business must have filed income tax returns for the past year, and your business vintage should be of at least 3 years.

Forecast business revenue

Preparing revenue projections will certainly help you when you’re applying for an equipment loan. It will allow you to showcase your need for additional equipment and the result that it will have in terms of an increase in revenue. Third-party projections also assist with making your case and so it’s a good idea to consult a financial expert when preparing for a loan application.

Gather supporting documents

The documents you need to submit in order to get a sanction are an extension of the eligibility criteria. As they prove your eligibility, they must be up to date and accurate. Mismatches in documentation will cause problems with your application and may even lead to rejection. Generally, you are required to provide KYC documents, including ID proof and address proof, and a certificate that proves your business’s existence. In the case of an equipment loan, you need to also provide supporting financial documents. This includes bank statements that show your business income, relevant audit reports and other such documents.

Now that you know how to get a machinery loan, it is imperative that you scout the market for a lender that offers you an 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 wherein you can borrow from the sanction in parts, multiple times. Here you pay interest only on the amount that you have utilised and not the entire sanction. This helps you upgrade machinery or lease equipment affordably. Further, by choosing to pay interest-only EMIs, you can reduce your monthly instalments by up to 45% and repay the principal amount at the end of the tenor. To take advantage of these features and others like it, check your pre-approved offer for a tailored machinery loan offering, apply and enjoy instant approval.

Additional Read: Industries that can benefit from equipment financing
 

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