Machinery Loan Online - Apply Now and Get up to Rs. 80 Lakh

To meet the machinery loan eligibility requirements from Bajaj Finance, your business must have been operational for at least 3 years, and you generally need a CIBIL score of 685 or higher. Applicants must also meet the applicable age and financial criteria.

Example

Ramesh runs a plastic components manufacturing unit in Pune that has been operational for 5 years. He applies to Bajaj Finance for an equipment finance loan of Rs. 40 lakh to replace three injection-moulding machines. After meeting the applicable eligibility and assessment requirements, he receives approval within 48 hours and selects a 60-month repayment tenure. 

He opts for the Flexi Hybrid Loan variant, which provides interest-only EMIs during the initial 24 months, helping him manage repayments while the upgraded machinery is put to use. This machinery finance arrangement allows him to plan his cash flow around the facility's repayment terms.

You generally need 7 categories of documents to apply for a machinery loan from Bajaj Finance. These help verify your identity, income, business operations, financial position and equipment purchase details.

Additional documents may be requested for equipment loans depending on the applicant’s profile and the machinery being financed.

A machinery loan can help businesses purchase or replace essential equipment, with financing of up to Rs. 80 lakh and up to 80% of the eligible machinery cost.

A longer repayment tenure can lower your monthly EMI but increase the total interest payable over the loan period. Compare repayment options using the machinery loan EMI calculator before applying for business equipment loans.

Businesses can acquire machinery either through a loan or by leasing the equipment. The key difference is ownership: a machinery loan allows the borrower to own the asset, while a leasing arrangement generally gives ownership to the lessor.

As a general guide, a machinery loan may suit businesses that need long-life assets such as CNC machines, packaging units or food-processing equipment for regular use. Leasing may be worth considering for technology or specialised equipment that becomes outdated quickly. Compare the total cost and ownership terms before choosing either option.

Small businesses may be able to obtain financing for used machinery, subject to the lender’s conditions and assessment of the equipment. Approval for second-hand machinery finance generally depends on its age, condition, residual value and intended use. 

There is no universal machine-age limit across lenders; the equipment may need to remain operational and retain sufficient value throughout the loan tenure. Applicants may also need to provide a valid quotation or invoice with the machine’s purchase details. 

The lender will assess the business’s vintage, repayment capacity and credit history. Some lenders may require collateral for used machinery. Bajaj Finance offers unsecured business loans from Rs. 2 lakh to Rs. 80 lakh for eligible applicants, which may be considered for other business funding requirements.

You can fund an upgrade to new machinery through a Bajaj Finance machinery loan of up to Rs. 80 lakh, with interest rates starting at 14% p.a., subject to eligibility. The old machinery being replaced does not automatically need to be pledged as collateral.

To apply for machinery finance, keep these conditions in mind:

• Business vintage and credit score: Your business should have at least 3 years of operations, and you generally need a CIBIL score of 685 or higher.
• New machinery details: Provide a valid quotation or invoice for the new replacement machinery.
• Financial documents: Keep your ITRs for the last 2 years and bank statement for 1 year ready.
• Equipment assessment: Bajaj Finance assesses the proposed new machinery purchase and the applicant’s eligibility.

Eligible applicants may receive approval within 48 hours, subject to verification. Check your loan offer online before applying.

A new business with less than 3 years of operations may face additional scrutiny when applying for equipment loans, as Bajaj Finance’s standard machinery loan eligibility criteria require at least 3 years of business vintage. You can consider these steps to strengthen your funding options:

• Explore guarantee-backed lending: Ask eligible lenders about financing under CGTMSE or CGFMU. These schemes provide credit guarantees for qualifying loans but do not guarantee approval or remove the lender’s eligibility checks.
• Build your credit profile: Maintain a CIBIL score of 685 or higher and demonstrate consistent cash profits where possible.
• Consider a co-applicant: A co-applicant or guarantor with an established financial profile may strengthen an application, subject to the lender’s policy.
• Assess repayment capacity: Business equipment loans should fit your projected cash flow and operating costs.

New businesses should use a machinery loan EMI calculator to check whether the repayment commitment is manageable.

Bajaj Finance equipment loans cover a range of industrial and manufacturing machinery, helping eligible businesses access machinery finance for equipment purchases across different sectors. The equipment must meet the lender’s assessment and applicable loan conditions.

Bajaj Finance assesses machinery finance applications based on the applicant’s eligibility, equipment requirements, supporting documents and applicable loan terms.