₹ 2 lakh – ₹ 80 lakh
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Upgrading the machinery and equipment of your business can be a hefty expense and one you can address conveniently with the Bajaj Finance machinery loan. With it, you can get approved for a sizable amount of up to Rs. 80 lakh* (*Inclusive of Insurance Premium, VAS Charges, Documentation Charges, Flexi fees and Processing Fees) to ensure that you get the equipment you need to take your enterprise to the next level.
This loan is easily available, so long as you meet our relaxed criteria and submit the basic documents needed. In fact, on meeting the terms, you get loan approval in under 48 hours*.
In summary
A machinery loan offers unsecured funding for purchasing, upgrading, or replacing business equipment, with flexible loan amounts and repayment tenures suited to different operational needs.
- Loan amount: Machinery finance is available from Rs. 2 lakh to Rs. 80 lakh, inclusive of insurance, value-added services, documentation charges, Flexi fees, and processing fees.
- Interest rate: The applicable rate ranges from 14% to 23.50% p.a., while ECLGS 5.0 loans carry rates ranging from 8% to 13% p.a.
- Repayment tenure: Borrowers can repay the loan over 12 to 96 months, or 1 to 8 years, depending on the approved terms.
- Collateral: These equipment loans do not require collateral, allowing businesses to obtain machinery finance without pledging assets.
- Approval and fees: Eligible applicants may receive approval within 48 hours, subject to verification. The processing fee can be up to 4.72% of the loan amount, inclusive of applicable taxes.
What is a machinery loan?
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A machinery loan is a type of business loan given to entrepreneurs to buy new machines or equipment. Also called machine loan finance, this loan is meant only for purchasing new machinery or upgrading old equipment. Many banks and financial institutions in India offer machinery loans for new businesses, helping them overcome financial challenges and grow successfully.
Features and benefits of machinery loan
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- Loan amount up to Rs. 80 lakh
Fund your working capital requirements with ease when you opt for our machinery loan. - Collateral-free finance
Access equipment financing without needing to pledge your assets as security. - Flexi benefits
With our Flexi facility, you can borrow from your sanction freely and pay interest only on the amount you withdraw. If you are looking for flexible financing to support business expansion or equipment upgrades, you may also consider the option to apply for business loan tailored to your operational needs. - Digital loan management
Our loans come with an online account to manage EMIs and simplify your access to crucial loan information.
Bajaj Finance Machinery Loans offer several key benefits tailored to support business growth. With flexible EMI options ranging from 12 to 96 months and affordable interest rates, businesses can plan repayments with ease. The loan covers a wide range of machinery purchases with high loan-to-value ratios of up to 80%, catering to diverse customer segments. The process is simplified with minimal documentation and easy eligibility, ensuring faster access to funds. Disbursals are quick, backed by streamlined assessments for a broad range of borrowers. Additionally, customers enjoy doorstep service, with document collection and assistance provided directly by our sales managers for a hassle-free experience.
- Loan amount up to Rs. 80 lakh
What is the eligibility criteria for a machinery loan?
A machinery loan is available to eligible self-employed applicants and businesses with at least three years of operations, subject to financial and credit assessment.
| Machinery loan eligibility parameter | Requirement |
|---|---|
| Business type | Self-employed individuals, proprietors, partnership firms, LLPs, and private or public limited companies |
| Business vintage | Minimum three years in operation |
| Age | 18 to 80 years, with the upper limit applicable at loan maturity |
| Financial health | Positive net worth and consistent cash profits |
| Credit profile | Good credit history with a CIBIL score of 685 or higher |
Example
Ramesh runs a five-year-old plastic components unit in Pune. He applied for an equipment finance loan of Rs. 40 lakh through Bajaj Finance to replace three injection-moulding machines. After meeting the applicable eligibility criteria, he received approval within 48 hours and selected a 60-month tenure to keep his monthly EMI manageable.
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Documents required for machinery loan
- KYC documents: PAN Card, Aadhaar, Passport, Voter ID, Driving License, and utility bills (electricity or water) of applicants and co-applicants, if applicable.
- Proof of income: Valid income documents that demonstrate financial capacity.
- Business existence proof: Documents showing business registration and operational history.
- Financial records: Last 2 years’ Income Tax Returns and 1 year’s bank statement.
- Existing facility sanction letter: Document showing details of any current loan facility.
- Machine quotation: Original and valid quotation of the machinery to be purchased.
- Additional documents: Any other paperwork requested by the lender.
Interest rate and fees applicable on machinery loan
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The machinery loan interest rate at Bajaj Finance ranges from 14% to 23% per annum, while loans under ECLGS 5.0 carry rates ranging from 8% to 13% per annum. A processing fee of up to 4.72% of the loan amount, inclusive of applicable taxes, is deducted upfront.
Type of fee Applicable charges Rate of interest 14% to 23% per annum
For Emergency Credit Line Guarantee Scheme (ECLGS) 5.0: 8% p.a. to 13% p.a.
Processing fees Up to 4.72% of the loan amount (inclusive of applicable taxes)
Bounce charges Rs. 1500/- per bounce.
“Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.
Flexi Facility Charge Term Loan – Not applicable
Flexi Loan – Up to Rs 999/- to Rs 16,999/- (Inclusive of applicable taxes)
will be deducted upfront from loan amount.
Penal charge Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. Prepayment charges Full Pre-Payment
• Term Loan: Up To 4.72% (Inclusive Of Applicable Taxes) On The Outstanding Loan Amount As On The Date Of Full Pre-Payment.
• Flexi Term (Dropline) Loan: Up To 4.72% (Inclusive Of Applicable Taxes) on the outstanding loan amount, As On The Date Of Full Pre-Payment.
• Flexi Hybrid Term Loan: Up To 4.72% (Inclusive Of Applicable Taxes) on the outstanding loan amount, As On The Date Of Full Pre-Payment.
Part Pre-Payment:
• Term Loan: Up To 4.72% (Inclusive Of Applicable Taxes) Of Principal Loan Amount Prepaid On The Date Of Such Part Pre-Payment.
• Not Applicable For Flexi Term (Dropline) Loan And Flexi Hybrid Term Loan
Stamp duty Payable as per state laws and deducted upfront from loan amount Annual maintenance charges Term Loan: Not applicable
Flexi Term (Dropline) Loan: Up To 0.59% (Inclusive Of Applicable Taxes) Of The Dropline Limit (As Per The Repayment Schedule) On The Date Of Levy Of Such Charges.
Flexi Hybrid Term Loan: Up To 1.18% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Loan Tenor. Up To 0.59% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Loan Tenor.
Credit Guarantee Scheme Fee Credit Guarantee Fund for Micro Units (CGFMU): Credit Guarantee Scheme fee - Up to 1.18% p.a. (pro rated daily till 31st March) (inclusive of all applicable taxes) of loan amount.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): Credit Guarantee Scheme fee – Up to 0.885% (inclusive of all applicable taxes) of loan amount (for first 12 months).
Credit Guarantee Scheme Renewal Fee Credit Guarantee Fund for Micro Units (CGFMU):
Credit Guarantee Scheme Renewal fee – Up to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount/Dropline limit as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE):
Credit Guarantee Scheme Renewal fee – Up to 0.885% (inclusive of all applicable taxes) annually on the outstanding loan amount/Dropline limit as on the last day of the month preceding the anniversary date of pool submission
*If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.
Note: For loans under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, only Stamp Duty charge is applicable.
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How to apply for a machinery loan
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Applying for our machinery loan is simple and time-efficient. You can apply for the machinery loan online by following these steps:
- Click on ‘Check Loan Offer’ to open the application form
- Fill in basic details and verify the OTP sent to your registered mobile number
- Enter your KYC and business details
- Upload the bank statement for the last 6 months and submit the application form
Await contact from our representative with further loan processing instructions.
*Conditions apply
Why should you apply for a machinery loan for your business?
The reasons for taking machinery finance can vary from business to business. Here are some common reasons:
- Buying new equipment or machinery: Businesses can buy new machines to improve efficiency, increase production quality, and meet growing demands without using their working capital.
- Repairing or replacing old equipment: Fixing or changing faulty machines helps keep work running smoothly, reduces downtime, and maintains steady productivity.
- Lower repair costs: Investing in new machinery means fewer repair expenses, avoiding sudden breakdowns, and ensuring long-term, reliable operation.
- Flexible loan repayments: Easy repayment options through EMIs help businesses manage their finances better without affecting cash flow. Some lenders also offer customised repayment plans based on the business’s needs.
This type of loan is commonly available in India to support businesses in upgrading or expanding their equipment.
Machinery loan vs equipment leasing
A common question for businesses is whether to opt for a machinery loan or lease the equipment instead. Here’s a straightforward comparison:
| Parameter | Machinery loan | Equipment leasing |
| Ownership | You own the asset | The lessor owns the asset |
| Initial cost | Down payment plus EMIs | Only lease rentals |
| Tax benefit | Depreciation and interest deduction | Lease rentals treated as a business expense |
| Tenure | Typically 1–8 years | Typically 3–5 years |
| End of term | You continue to own the asset | Option to return, renew, or purchase at residual value |
| Best suited for | Long-life machinery with consistent usage | Technology equipment that becomes outdated quickly |
| Overall cost | Usually lower over the long term as you retain ownership | Generally higher as there is no ownership at the end |
Quick rule of thumb: if the machinery has a useful life of more than five years and will be used consistently - such as CNC machines, packaging units, or food processing equipment - a machinery loan is generally the more practical option. For technology that changes rapidly, such as servers or specialised IT hardware, leasing may be a better fit.
Can small businesses get a loan for used machinery?
Yes, a machinery loan for small business can finance used equipment, subject to the lender’s conditions regarding its age, condition, residual value, and intended use. Approval for used machinery finance remains at the lender’s discretion after the equipment is assessed. There is no universal machine-age limit; lenders may instead require the machinery to remain operational and retain adequate value throughout the loan tenure. Applicants generally need a valid quotation or invoice containing the machine’s purchase details. The lender will also assess the borrower’s business vintage, repayment capacity, and credit history. Some lenders may require collateral when financing second-hand machinery. Bajaj Finance offers an unsecured machinery loan ranging from Rs. 2 lakh to Rs. 80 lakh; check the applicable eligibility requirements before applying online.
What types of machinery can you finance with this loan?
Equipment loans from Bajaj Finance can support a wide range of industrial and manufacturing machinery through a machinery loan.
| Machinery finance category | Example use case |
|---|---|
| Engineering and industrial machinery | CNC machines, lathes, and milling machines |
| Food processing and packaging | Packaging lines, filling machines, and sealing units |
| Plastic processing | Injection-moulding machines and blow-moulding units |
| Textile and garment | Weaving, stitching, and knitting machines |
| Woodworking equipment | Cutting saws, planing machines, and edge banders |
| Printing and packaging | Offset printers, digital printers, and packaging units |
| Pharmaceutical manufacturing | Tablet presses and blister-packaging machines |
| Medical and healthcare equipment | Diagnostic machines and imaging equipment |
| Other industrial machinery | Eligible manufacturing or processing equipment |
Bajaj Finance assesses machinery finance applications based on the applicant’s eligibility, equipment requirements, documentation, and applicable loan terms.
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Frequently Asked Questions
Overview
What is the maximum amount of machinery loan?
The maximum loan amount for machinery purchases can go up to 2 crore or more, depending on the lender’s policy and the applicant’s credit profile.
Can we get a loan on old machinery?
Yes, some lenders do offer loans for used or second-hand machinery, subject to certain conditions such as machine age, residual value, and usage.
What is the interest subsidy on a machinery loan?
Under government schemes like the Credit Linked Capital Subsidy Scheme (CLCSS), eligible borrowers can receive an interest subsidy of up to 15 percent on machinery loans, capped at 15 lakh.
What is the tenure for a machinery loan?
Machinery loan tenures generally range from 12 months to 8 years, depending on the loan amount and the repayment capacity of the borrower.
How does a loan for machinery work?
A machinery loan functions like any other business loan. The funds are used to purchase or service machinery, and repayments are made through EMIs over a defined tenure, based on the lender's terms and the borrower's eligibility.
What is the processing fee for a machinery loan?
The machinery loan processing fee charged by Bajaj Finance is up to 4.72% of the loan amount, inclusive of applicable taxes, and is deducted upfront. Since the applicable fee may vary based on the approved loan terms, applicants should review the final charges in the loan agreement before accepting the offer.
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Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.