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Key Features of Machinery Loans

  • Loan Amount: Up to ₹5 crore based on business needs.
  • Flexible Repayment: Tenure of 1 to 7 years.
  • Competitive Interest Rates: Starting from 8.50% p.a.
  • Quick Loan Processing: Approval within 24-72 hours.
  • Collateral-Free Options: For eligible applicants.
  • New & Used Machinery Financing: Loans for both brand-new and pre-owned equipment.
  • Customized EMI Plans: Based on cash flow and business turnover.
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Who Can Apply for a Self-Employed Machinery Loan?

Our machinery loans are tailored for:

  • Manufacturers & Factory Owners: For upgrading or expanding production lines.
  • Construction & Engineering Firms: To buy heavy-duty equipment like cranes, excavators, etc.
  • Printing & Packaging Businesses: For investing in printing presses and packaging machines.
  • Textile & Garment Units: For purchasing sewing, weaving, and dyeing machines.
  • Small & Medium Enterprises (SMEs): To automate processes and increase efficiency.

Eligibility Criteria for Self-Employed Machinery Loans

  • Age: 21 to 65 years.
  • Business Stability: Minimum 1 years of profitable operations.
  • Credit Score: 700+ preferred for better loan terms.
  • Annual Turnover: Minimum ₹10 lakh to ₹50 crore (varies by lender).
  • Business Vintage: Minimum 1-3 years for NBFC and bank approvals.
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Documents Required for a Machinery Loan

Applying for a machinery loan is simple. You need:

  • KYC Documents: PAN Card, Aadhar Card, Passport, or Voter ID.
  • Business Proof: GST Registration, Trade License, or Business Incorporation Certificate.
  • Income Proof: Last 2-3 years’ ITR and Profit & Loss statements.
  • Bank Statements: Last 6-12 months to verify cash flow.
  • Quotation of Machinery: Invoice or proforma from the equipment supplier.

Why Choose Login to Loans for a Self-Employed Machinery Loan?

  • Tailored Loan Solutions: Get customized loans based on your business needs.
  • Quick Approval & Disbursal: Funds transferred within 24-72 hours.
  • Low-Interest Rates: Competitive rates for self-employed individuals.

How to Apply for a Machinery Loan?

  • Step 1: Check your loan eligibility online.
  • Step 2: Submit your documents and machinery quotation.
  • Step 3: Get loan approval and finalize the terms.
  • Step 4: Loan disbursal to the machinery supplier or your account.

Frequently Asked Questions (FAQs) About Machinery Loans

What is a machinery loan?
A machinery loan is a type of business loan designed to help businesses purchase, lease, repair, or upgrade machinery or equipment. It supports entrepreneurs, startups, and MSMEs by providing funds to enhance productivity and efficiency without straining working capital.
What types of machinery can be financed with a machinery loan?
Machinery loans can finance a wide range of equipment, including:
Manufacturing tools (e.g., machine tools, plastic processing, textile machinery)
Construction equipment
Agricultural machinery
Food processing equipment
Printing and packaging machines
Medical equipment
Loans can cover both new and used machinery, depending on the lender.
Who is eligible for a machinery loan?
Eligibility criteria vary by lender but typically include:
Applicant age: 21–65 years (at loan maturity).
Business vintage: At least 1–3 years of operation.
Credit score: A good credit history (CIBIL score often required).
Business stability: Proof of steady cash flow or revenue.
Indian citizenship (for India-based lenders).
Some lenders may offer loans to startups or businesses with limited credit history at higher interest rates.
What documents are required to apply for a machinery loan?
Commonly required documents include:
KYC documents: PAN Card, Aadhaar, Passport, Voter’s ID, or Driving License.
Business proof: Certificate of practice, GST registration, or sales tax certificate.
Financial documents: Income Tax Returns (last 2–3 years), bank statements (last 6–12 months), audited financials (balance sheet, profit & loss statement).
Loan-specific documents: Pro forma invoice or quotation for the machinery.
Address proof: Utility bills or company PAN card.
Additional documents may be requested based on the lender’s policies.
Do machinery loans require collateral?
In most cases, machinery loans are unsecured, meaning no additional collateral is needed, as the purchased machinery itself acts as security. However, some lenders may offer secured loans (e.g., loan against existing machinery) or require collateral for higher loan amounts or riskier profiles. Collateral-free loans are common for MSMEs and may have higher interest rates.
What is the maximum loan amount for a machinery loan?
Loan amounts vary by lender and depend on factors like business size, financial health, and machinery cost. Typical ranges include:
Up to ₹50 lakh (e.g., Bajaj Finserv).
Up to ₹90 lakh (e.g., Tata Capital).
Up to ₹5 crore (e.g., Poonawalla Fincorp, Axis Bank).
Up to ₹100 crore for larger MSMEs (e.g., Terkar Capital).
The loan-to-value (LTV) ratio is often 75–80% of the machinery’s cost.
What are the interest rates for machinery loans?
Interest rates typically range from 8% to 30% per annum, depending on:
Lender type (banks, NBFCs, or MFIs).
Applicant’s credit score and business profile.
Loan type (secured vs. unsecured).
Examples:
Poonawalla Fincorp: Starting at 9.99% p.a.
Terkar Capital: Starting at 9.5% p.a.
Tata Capital: Starting at 16% p.a.
Rates are subject to change and lender discretion.
What is the repayment tenure for a machinery loan?
Repayment tenures typically range from 12 months to 7 years (60–84 months), with flexible EMI options. Longer tenures help align repayments with business cash flow, while shorter tenures may reduce interest costs.
How can I apply for a machinery loan?
Online Process:
Visit the lender’s website (e.g., HDFC Bank, Bajaj Finserv).
Fill out the loan application form with personal, business, and loan details.
Upload scanned copies of required documents.
Submit the application.
Await verification and approval (usually within 48 hours to 7 days).
Funds are disbursed to your bank account upon approval.

Offline Process:
Visit the nearest branch of the bank or NBFC.
Request and fill out a machinery loan application form.
Submit the form with original and photocopied documents.
Await verification and approval.
Funds are disbursed post-approval.
Some lenders, like Mahindra Finance, offer a hybrid process where you start online and complete documentation offline.
What are the benefits of a machinery loan?
Preserves cash flow: Spreads machinery costs over time, maintaining liquidity for other expenses.
Increases productivity: Enables acquisition of modern equipment to boost output and efficiency.
Tax benefits: Interest payments and depreciation on machinery may be tax-deductible in India.
Collateral-free options: Reduces risk for businesses with limited assets.
Competitive edge: Access to advanced machinery improves product quality and market positioning.
Flexible repayment: Customizable EMIs and tenures suit business needs.
Can startups or new businesses get machinery loans?
Yes, startups and new businesses can apply for machinery loans, though eligibility criteria may be stricter. Lenders may require:
A detailed business plan outlining the purpose and benefits of the machinery.
Higher interest rates for businesses with no or limited credit history.
Government schemes (e.g., MSME loans via SIDBI) or NBFCs like Lendingkart offer easier access for startups.
Are there government subsidies for machinery loans?
While direct subsidies on machinery loan interest rates are rare, several Indian government schemes support MSMEs and startups for equipment financing:
SIDBI schemes: Offer loans with favorable terms for machinery purchases.
NABARD schemes: Support agricultural machinery loans.
MSME loan programs: Provide collateral-free loans at lower rates under schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
These schemes don’t typically subsidize interest but offer easier access and better terms.

List of Machinery Loans OD Banks in India