Used & Imported Machinery Loan

Good second-hand machinery can cost a fraction of new and still have most of its working life left. Financing it is harder, because the lender must be satisfied about the machine's condition, its residual life and its resale value.

How the amount is decided

Not by the price you agreed, but by an independent valuer's report. Lenders typically fund 50% to 70% of the assessed value, and they cap the machine's age, commonly at ten years at purchase and fifteen at loan maturity. The tenure is shorter than for new equipment for the same reason.

Imported equipment

Imported machines are fundable but need a fuller document set: the bill of entry, the customs assessment, proof of payment abroad and an installation certificate. Where the purchase is from an overseas supplier directly, some lenders prefer to structure it as a letter of credit rather than a term loan.

Where the risk sits

A used machine can arrive with problems that a valuation does not catch. Insist on a physical inspection by someone who knows that machine type, and check that spares and service support are still available in India. A machine you cannot service is worth very little.

Where we help

We know which lenders have genuine appetite for used and imported equipment, because most do not. We also arrange the valuation early, so you know the fundable amount before you commit to the seller.