What is equipment financing?

2 min read

Equipment financing refers to a credit facility that helps you finance all the equipment and machinery-related needs of your business. Using machinery loans you can buy, lease, upgrade or repair equipment quickly.

Some of the benefits of equipment financing from Bajaj Finserv include:

  • Loans of up to Rs. 55 lakh with approvals within 24 hours*
  • Affordable rate of interest
  • Transparent fees and charges
  • Collateral-free finance
  • Flexi loan facility

To apply for a machinery loan from Bajaj Finserv, you will have to keep the following documents handy:

  • KYC documents
  • Proof of business ownership
  • Income tax returns filed for the last 1 year
  • Profit and loss statements and balance sheets of the previous 2 years

*Conditions apply

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Frequently asked questions

What is equipment finance?

Equipment finance is a type of business loan that provides money to purchase or lease equipment needed for business operations. This type of finance allows businesses to obtain the necessary equipment without having to pay for it all upfront.

What is an example of equipment financing?

Let us assume that you are the owner of a manufacturing firm. Your factory needs a new piece of heavy machinery that costs Rs. 20,00,000. Through equipment finance, you can purchase the machine with little to no upfront cost and make monthly payments over time, often with a fixed interest rate.

Is equipment financing a Term Loan?

Yes, this is generally a Term Loan, with a fixed tenure and set interest rate.

Who is eligible for equipment financing?

Equipment financing is available for businesses that need to buy or use new or upgraded equipment, such as machinery, vehicles, or technology. The eligibility criteria for medical equipment finance by Bajaj Finance include:

Nationality: Indian
Age: 24 years to 80 years *
CIBIL Score: 685 or higher
*Age should be 80 years or less at the end of the loan tenure.

What are the benefits of equipment financing?

Equipment financing can help businesses improve their cash flow, conserve their working capital, access state-of-the-art equipment, and gain a competitive edge. Equipment financing can also offer flexible repayment options, and competitive interest rates.

What is the difference between asset finance and equipment finance?

Asset finance is a broad term that covers various types of financing related to the assets of a company. Equipment finance is a specific type of asset finance that involves the purchase or use of equipment for business purposes. Equipment finance can be either secured by the equipment itself or by other assets owned by the company.

Can one take loan to buy medical equipment?

Bajaj Finance offers Medical Equipment Finance, through which you can get loan of up to Rs. 6 crore to purchase medical equipment.

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