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Finance new plant and equipment with the machine itself as security, over a tenure up to 7 years.
A machinery loan funds a new machine using the machine as the security. Because the lender holds a charge on a real, valuable asset, the rate is well below an unsecured business loan and the tenure can be matched to the working life of the equipment.
CNC and lathe machines, injection moulding machines, printing presses, packaging lines, generators, medical equipment such as scanners and dental chairs, commercial kitchen equipment, and construction equipment. Lenders typically fund 70% to 85% of the invoice value, and many will include GST and installation cost in the funded amount.
This is the part most borrowers get wrong. A machine with a fifteen-year life financed over three years creates an EMI the early cash flow cannot support. Financed over seven, the machine comfortably pays for itself. Ask for the tenure your production plan actually justifies.
MSME units may qualify for the CGTMSE guarantee, which lets a lender fund without extra collateral, and for interest subvention under some state and central schemes. Eligibility depends on your Udyam registration and your sector.
We get the quotation assessed before the file goes in, so the funding percentage is agreed rather than discovered late. We also compare lenders on the total cost, since machinery loans often carry documentation and inspection charges that never appear in the headline rate.
No separate property is needed in many cases. The equipment is hypothecated to the lender until the loan closes.
Several lenders fund the invoice inclusive of GST, freight and installation, so your own outlay is much smaller.
Up to 7 years, so the EMI stays in line with the cash the machine actually generates.
The asset qualifies for depreciation and the interest is a business expense. Confirm the treatment with your CA.
| Business vintage | At least 2 to 3 years of operation |
|---|---|
| Funding | 70% to 85% of the machine invoice value |
| Margin | 15% to 30% to be brought in by you |
| Financials | Last 2 years ITR with audited financials showing positive profit |
| Registration | Udyam registration helps, and is required for CGTMSE-backed funding |
These are typical criteria. Individual lenders vary, and we will tell you which ones are flexible on your particular case.
You do not need any of these to enquire. We only ask for documents once we know which lender we are approaching.
Pre-filled with this product's own rate band and limits.
Pre-filled with the indicative rate band for New Machinery Loan. Move the sliders to match your own case.
Ten crore one lakh fifty thousand
4 yr 11 mo
Your monthly EMI
₹20,34,857
for 4 yr 11 mo
These numbers are indicative. Your actual offer depends on the lender. Most loans in India are floating rate, so the EMI can change when the RBI moves rates.
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