Apply for a Machinery Loan for MSME - Fast and Easy Process

A machinery loan for MSME businesses from Bajaj Finance offers funding of up to Rs. 80 lakh with a repayment tenure of up to 96 months. Access an MSME machinery loan with flexible financing options and check your eligibility online today.
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Business Loan
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4 min
Aug 25, 2026

In summary

A machinery loan for MSME businesses can provide up to Rs. 80 lakh to purchase or upgrade equipment, with Bajaj Finance offering repayment tenures of 12–96 months.

  • Loan amount: An msme machinery loan from Bajaj Finance can provide funding of up to Rs. 80 lakh, subject to eligibility.
  • Interest rate: Machinery loan interest rates range from 14%–23.50% p.a., depending on the borrower's profile and applicable terms.
  • Repayment tenure: An equipment loan for MSME businesses can have a flexible repayment tenure of 12–96 months.
  • Credit score: A CIBIL score of 650 or above is preferred for machinery financing, subject to other eligibility criteria.

Use the Bajaj Finance Business Loan EMI Calculator to plan your monthly repayments before you apply.

 

Machinery loan for MSME

An MSME machinery loan helps eligible small and medium-sized businesses purchase or upgrade equipment without putting pressure on their working capital. Bajaj Finance offers loan amounts of up to Rs. 80 lakh, with repayment tenures ranging from 12 to 96 months. Interest rates are typically between 14% and 23.50% p.a., depending on the applicant’s profile and applicable terms. A CIBIL score of 650 or above is preferred, subject to other eligibility criteria. The financing can support businesses in expanding capacity and meeting equipment-related requirements.


How do you apply for machinery loan for MSME?

Applying for a machinery loan for MSME is a straightforward process:

  • Research lenders: Identify financial institutions offering machinery loans tailored for MSMEs.
  • Check eligibility: Ensure your business meets the lender's eligibility criteria.
  • Gather documents: Prepare the necessary documentation (details in the next section).
  • Online application: Visit the lender's website and fill out the application form.
  • Submit documents: Upload scanned copies of the required documents.
  • Verification: The lender will verify your application and documents.
  • Approval and disbursement: Upon approval, the loan amount will be disbursed to your account.

Many lenders offer a digital application process, making it convenient and time-efficient.

Required documents for machinery loan for MSME

To apply for a machinery loan for MSME, you'll typically need the following documents:

  • Identity proof: PAN card, Aadhaar card, passport, or voter ID.
  • Address proof: Utility bills, passport, or Aadhaar card.
  • Business proof: GST registration, trade license, or partnership deed.
  • Financial statements: Income Tax Returns (ITR) for the last 1–3 years.
  • Bank statements: Last 6–12 months of bank statements.
  • Machinery quotation: Proforma invoice or quotation from the machinery supplier.
  • Photographs: Passport-sized photographs of the business owner and co-applicants.

Having these documents ready can expedite the loan application process. If you qualify for a pre-approved loan, the process could be even faster, so be sure to check your pre-approved business loan offer.



Eligibility criteria for machinery loan for MSME

The eligibility criteria for a machinery loan for MSME may vary among lenders but generally include:



  • Business vintage: Minimum of 2–3 years in operation.
  • Age of applicant: Typically between 25 to 65 years.
  • Annual turnover: Varies by lender; usually between Rs. 10 lakh to Rs. 2 crore.
  • Credit score: A good credit score (750 and above) is preferred.
  • Business type: Registered MSMEs under the MSME Development Act.

Meeting these criteria increases your chances of loan approval.



Five ways for MSMEs to avail machinery loans in India

MSMEs in India can avail machinery loans through various channels:



  • Public sector banks: Offer competitive interest rates and longer repayment tenures.
  • Private sector banks: Provide faster processing and personalised services.
  • Non-Banking Financial Companies (NBFCs): Offer flexible loan terms and quicker disbursements.
  • Government schemes: Programs like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provide collateral-free loans.
  • Online lending platforms: Digital platforms offer quick and hassle-free loan applications.

Exploring these options can help you find the best loan terms suited to your business needs. For added convenience,  check your pre-approved business loan offer to see if you already qualify for faster funding.



Interest rate and charges for equipment loan for MSMEs

The interest rates and charges for equipment loans for MSMEs vary based on the lender and the applicant's profile. Here's an indicative overview:



LenderInterest rate (p.a.)Processing fee
Bajaj Finance14% – 30%Minimal
Public sector banks9% – 12%0.5% – 2%
Private sector banks10% – 15%1% – 2.5%
NBFCs12% – 20%1.5% – 3%


Note: Rates and fees are indicative and may vary. Always check with the lender for the most accurate information.



Different uses of machinery loans for MSME

Machinery loans for MSMEs can be utilised for various purposes:



  • Purchasing new equipment: Acquire the latest machinery to enhance production.
  • Upgrading existing machinery: Replace outdated equipment to improve efficiency.
  • Leasing machinery: Opt for leasing options to reduce upfront costs.
  • Repairing damaged machinery: Fund repairs to minimise downtime.
  • Expanding operations: Invest in machinery to scale up business operations.

These loans provide the financial flexibility to meet diverse business needs.



Tips for successful MSME machinery loan application

To increase your chances of loan approval:



  • Maintain a good credit score: A score above 750 is ideal.
  • Keep financial documents updated: Ensure your ITRs and bank statements are current.
  • Provide accurate information: Fill out the application form truthfully.
  • Choose the right loan amount: Borrow only what you need to avoid unnecessary debt.
  • Understand loan terms: Familiarise yourself with the interest rates, repayment tenure, and other charges.

Being well-prepared can streamline the loan application process.



Conclusion

Securing a machinery loan for MSME can significantly boost your business's growth and efficiency. By understanding the application process, eligibility criteria, and optimal usage of the loan, you can make informed decisions. We offer tailored machinery loans with attractive interest rates and flexible terms to support your business needs. Explore more about business loans from to fuel your business expansion.

Helpful resources and tips for business loan borrowers

Types of Business LoanBusiness Loan Interest RatesBusiness Loan Eligibility
Business Loan EMI CalculatorUnsecured Business LoanHow to Apply for Business Loan
Working Capital LoanMSME LoanMudra Loan
Machinery LoanPersonal Loan for Self EmployedCommercial Loan

Frequently asked questions

Can I get a machinery loan for MSMEs?

Yes, MSMEs can avail machinery loans from various financial institutions, including banks and NBFCs. These loans help in purchasing, upgrading, or repairing machinery without impacting working capital. To get started, check your business loan eligibility to see if you qualify for a loan that suits your needs.

What is the maximum loan amount for MSME machinery loans?
The maximum loan amount varies by lender. For instance, we offer machinery loans up to Rs. 80 lakh, depending on the applicant's eligibility and requirements.

What is the typical repayment tenure for MSME machinery loans?
Repayment tenures for machinery loans typically range from 12 to 96 months, allowing businesses to choose a tenure that aligns with their cash flow and financial planning.

What happens if I default on my machinery loan EMI?

Defaulting on EMI payments can lead to penalties, a decrease in credit score, and potential legal action by the lender. It's crucial to communicate with your lender if you foresee difficulties in repayment. If you're concerned about your eligibility or repayment options, check your pre-approved business loan offer, which might offer better repayment flexibility and terms.

How to get a business loan for your MSME from Bajaj Finance?

Bajaj Finance offers unsecured business loans of up to Rs. 80 lakh for eligible MSMEs, including business machinery requirements. Eligible applicants can choose tenures of up to 96 months, subject to a CIBIL score of 650+ and other criteria. Check eligibility, submit documents, and complete verification online before applying.

What is the interest rate on a machinery loan for MSMEs from Bajaj Finance?

The MSME machinery loan interest rate from Bajaj Finance is 14%–23.50% p.a., depending on the applicant's profile. The applicable rate can vary based on factors such as credit score, business vintage and loan amount, along with other eligibility criteria. Compare the offered rate, processing fees. and repayment tenure to assess the overall borrowing cost before applying.

What is the minimum credit score needed for an MSME machinery loan?

For an MSME machinery loan from Bajaj Finance, a CIBIL score of 650 or above is generally preferred for stronger eligibility. However, approval depends on the lender's assessment and other criteria. Before applying, improve your credit profile by paying EMIs and outstanding dues on time, reducing existing debt and avoiding multiple loan applications within a short period.

Which type of machinery can be financed under an MSME machinery loan?

An MSME loan for machine purchase can finance equipment such as textile looms, CNC machines, food processing units, medical equipment and packaging machinery, subject to lender criteria. An equipment loan for MSME can help businesses upgrade or expand operations without using all their working capital. Eligible businesses can explore machinery financing from Bajaj Finance based on their requirements and eligibility.

What is the processing fee for an MSME machinery loan?

The processing fee for a machinery loan for MSME from Bajaj Finance is 4.72% of the loan amount.

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