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What is a Machinery Loan?

These are loans that assist companies in purchasing machinery and equipment in order to establish or develop a company or industrial unit. This is an excellent tool because it helps the company to boost overall efficiency while maintaining regular operating parameters.

Machinery loans are a profitable choice because they enable business owners and manufacturers to obtain better and more efficient machinery, allowing them to improve efficiency and benefit from sales and distribution.

Eligibility Criteria to Get a Machinery Loan

  • You must be a business owner or trader owning a small or medium-sized business
  • The age of your business must be minimum of 3 years
  • You should have filed ITR for your business for the last 2 years
  • Your age should be between 25-60 years

Benefits of a Machinery Loan

1. Increased productivity: Having a machinery loan helps you to buy better equipment, which in turn boosts the company's overall productivity.

2. Products of higher quality: Because machinery loans enable companies to acquire better equipment, the quality of the products manufactured by the upgraded machine is also higher and more refined.

3. Reduced defect risks: Getting better equipment by machinery loans reduces the risk of failures and improves the finesse of the supply chain and finished goods.

4. Production on time: Improved equipment allows for a quicker turnaround time. Products may be manufactured in a timely manner, increasing the overall efficiency of the manufacturing business.

Top Lenders for Machinery Loans in India

Bank Name Loan Amount  Interest Rate  Processing Fees Other Details

HDFC Bank

Up to 100% finance on commercial and construction equipment

8.71% – 15.52%

Up to 1% of the loan amount on new loans

Up to 1.5% of the loan amount on used loans

Overdue EMI interest of 2% per month shall be charged on the unpaid EMI amount

Bajaj Finserv

Up to Rs.32 Lakhs

Starts from 18%

Up to 2% of loan amount + GST

No collateral or guarantor required

Lending Kart

Rs.50,000 – Rs.1 crore

1 – 2% per month

2% of loan amount + GST

Repayment tenure of 1 month to 1 year, to suit your needs

DHFL (Dewan Housing Finance Corporation Limited)

As per your needs 

Based on your eligibility

2% of loan amount + GST

Repayment tenure of up to 6 years

Bank of Maharashtra

Up to Rs.20 crore

Based on your eligibility

  •  

Repayment tenure of up to 7 years

Ziploan

Rs. 1 lakh – Rs. 5 lakh

Based on your eligibility

3% of the loan amount + GST

Repayment tenure of 12 months – 24 months


Note: Various NBFCs, Small Finance Banks, and Micro Finance Companies provide machinery loans without requiring collateral. These entities' interest rates can differ depending on the applicant's profile and type of company. The Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation and the Small Industries Development Bank of India are two government-sponsored schemes that provide machinery loan subsidies (SIDBI).

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