CreditMantri Finserve Private Limited
4th Floor Sudhama, 36 Vijayaraghava Road,T Nagar, Chennai, Tamil Nadu 600017
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
To run a successful business, one needs the latest equipment and machinery. One should also make sure that the existing machinery is in fine condition to ensure business continuity. Procuring the latest technology tools is an important business process. These machinery & equipment are essential to the long-term asset building needs of the business.
An equipment loan offers a business owner the necessary capital to procure the equipment and machinery required for the business process. These loans are majorly secured loans since the purchased machinery or equipment is hypothecated to the lender. This allows long repayment tenures for the borrower while they continue using the machinery.
About Equipment Loans
Any business owner understands the importance of having the latest technology tools and equipment for their business. These may include medical equipment, computers and office equipment, trucks or other vehicles, data processing machines, servers, heavy machinery, etc. However, purchasing these machinery and equipment will cut in to a major share of the capital. Hence, it is prudent to spread the cost of these equipment through loans, while the capital investment can be utilized for other needs. Equipment loans also offer tax benefits to the business owner.
Equipment loans are generally offered by banks and equipment financing company. They can be used to fund the purchase or replacement of the required machinery and equipment. The purchased equipment acts as a collateral and hence there is no additional security/collateral needed. It helps to spread the cost of equipment over many months or years.
Borrowers can avail up to 95% of the equipment cost as loan. The repayment tenure is usually up to 60 months. The processing time is very quick compared to other loans and requires minimal documentation.
There is a huge number of equipment specific to every industry. Equipment loans are therefore sector specific. These loans can be used for purchase of any equipment that will help in the development of the business venture. It could be a new or used machinery. Some of the equipment sectors are:
The borrower must have a clear understanding of the type of equipment required for his/her business and the lender who can give him/her the best deal. We have enlisted some of the important points to remember while applying for an equipment loan
This differs among each lender. The lenders consider the cost of the equipment and the borrower’s credit standing while deciding the loan amount. Generally, one can avail up to 90% of the purchase cost for new equipment and up to 75% of the purchase cost for used equipment. Amounts of up to Rs. 25 crores are offered.
The purchased equipment is hypothecated to the lender and hence no additional security is required. However, for higher loan amount, the lender may insist on additional collateral.
Individuals, Partnership firms, Corporates, Trusts & Societies, Miners & Contractors are eligible. The should have more than 3 years of business continuity.
The prevailing repayment tenure is between 3 – 7 years with a 6 months moratorium period.
The prevailing interest rates on this loan is between 15% - 20%.
1. State Bank of India
SBI is the foremost choice for any kind of loan in India. They have the largest lending budget and lowest interest rates. They have an exhaustive list of products to cater to every need of the customers. They have a few products to cater to the equipment loan segment.
2. YES BANK
The bank offers Construction Equipment Loan and Healthcare & Printing Equipment loans.
3. Siemens India
4. Mahindra Finance
5. Essel Finance
6. Bajaj Finserv Machinery Loans
7. ICICI Bank – Construction Equipment Loan
These are some of the leading providers of equipment loans in India. The lending rates are very competitive along with attractive offers and benefits for the borrower. However, the borrower needs to clearly chart out the needs and approach the right lender for his loan requirements.
Get low interest loans & Lifetime FREE credit cards
Get customized Credit Health Report
Improve your creditworthiness
12 Month Loans
3 Month Loans
6 Month Loans
Animal Husbandry Loan
Business Instalment Loan
Cash Credit Loan
Cold Storage Loan
Collateral Free Loans
Dairy Farm Business Loan
Ecommerce Loans In India
Faq Loan Against Property
Government Loans For Small Scale Businesses
Home Improvement Loans
Instant Short Term Loans
Kitchen Modernization Loans
Loan Against Credit Card
Loan Against Fixed Deposit
Loan Against Insurance Policy
Loan Against LIC Policy
Loan Against Rent Receivables
Loan Against Securities
Loan Against Shares
Loan For Agriculture
Loan For Beauty Parlours
Loan For Businesswomen
Loan For Chartered Accounts
Loan For Construction
Loan For Day Care Centre
Loan For Land Purchase
Loan For Marraige
Loans For Advocates
Loans For Army Personnel
Loans For Defence Personnel And Widows
Loans For Disabled
Loans For Graduates
Loans For Minorities
Loans For People On Benefits
Loans For Restaurants
Loans For Scheduled Caste
Loans For Schools
Loans For Startup Business
Loans For Taxi Drivers
Loans For Unemployed People In India
Loans For Warehouse
Long Term Loans
Medical Equipment Loan
Micro Small And Medium Enterprises Loan
Personal Loan For Low Credit Score
Personal Loans For Self Employed
Reverse Mortgage Loans
Same Day Loans
Small And Medium Sized Enterprises Loans
Small Business Loan For Women
Small Business Loans
Top Up Loans
Working Capital Loan
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.