Machinery Loan without Security in India – New Business, Documents
Machinery Loan in India
Machinery loans are a type of business loan that help manufacturers, and other such business proprietors acquire financing in order to buy and purchase new and more efficient equipment and machinery for their business ventures. This is a great tool for it allows the business to increase its overall productivity while retaining its normal operating parameters.
Machinery loans are a lucrative option since it helps business head and manufactures to get a hold of better and more powerful equipment, which helps them increase productivity and turn a higher profit from sale and distribution.
Documents required for a Machinery Loan in India Without Security:
If you are looking to opt for a loan to facilitate equipment financing, then there are certain documents that must first be procured and made ready.
1. Proof of Business: For proof of business, one must keep at hand a certificate of practice that states the nature of business. This certificate acts as legal proof of the legitimacy of the business and establishes the reason for the machinery loan subsidy.
2. Past accounts: The financing and the accounts for the last 3 years must be attached with the rest of the documents. The accounts for the past 3 years are required to understand the amount of revenue that is earned by the business or company.
3. Residential proof: Proof of residence of the business and/ or office must be provided. For this, the company PAN card or any legal document that has affiliation with the company’s residential address may be provided.
4. Identity proof: For identity proof, the KYC or “know your customer” documents must be attached with the rest of the forms and documents to apply for a machinery loan in India.
Benefits and Advantages of Machinery Loan:
Running and managing a manufacturing business is not an easy task since you are required to meet the target demand for your products. At times, manufacturing units have a deficit of financing and are unable to upgrade and buy better equipment to keep up the target demand.
In such situations, a machinery loan can prove to be beneficial in getting hold of the financing to purchase the upgraded and better-performing machinery to make ends meet.
1. Increased productivity: Having a machinery loan allows the purchase of better equipment that, in turn, greatly increases the overall productivity of the firm. More number of units can be produced in the same or even a shorter period of time, which have a great effect on sales.
2. Quality products: Since machinery loans allow businesses to gain better equipment, the quality of the products that are produced from the upgraded machine is also better and more sophisticated. Better products also imply better sales and increased trust by the customers in the manufacturing company.
3. Reduced chances of a defect: When in the line of manufacturing of any product, you always run the risk of having a defect. This defect may be in the production machine itself or may be in the products that it churns out. By having better equipment through machinery loans, chances for such defects are greatly reduced and increases the finesse of the production chain and the final products.
4. On time production: better equipment allows for having a better turnaround time. Products can be produced within the time limit and can increase the productivity of the manufacturing company as a whole.
Applying for a machinery Loan in India through LendingKart:
LendingKart offers businesses and new startup owners the simple option of getting a business loan. We at LendingKart offer different types of business loans. From working capital loans to MSME loans and Business loan for women, one can find the perfect loan for their business from across 1300 cities in India.
Applying for a business loan on Lendingkart is a simple four-step process that is easy to understand and follow.
Step 1 – Check for eligibility: To apply for a machinery loan for a new business, one must first check if they are eligible to apply for the desired loan. The criteria for eligibility is all spelt out on the site itself, and one simply must compare it to their current situation.
Step 2 – Submit loan application: the next step is to fill out the application form for the desired loan. The application is a completely online process where you simply must fill out the details regarding your business and yourself too. After filling out the online forms, one simply has to click the submit button to do so.
Step 3 – Await sanctioning: After submitting the application form, all one has to do is now wait for the evaluation of your application. After evaluation, an affair sanction is proposed.
Step 4 – Acquire the funds: After evaluation and when your application gets successfully sanctioned, you will receive your machinery loan for a startup which you can then proceed to use to increase productivity and expand your business.
Fees and charges for Machinery Loan on LendingKart
|Interest Rate||1% to 2%*|
|One time Processing Charge||2% of the Loan amount|
|Tenure||1 month to 1 year|
|Loan Amount||Rs. 50,000 to 1 Crore|
|Part Prepayment Charges||Rs. 0|
|Pre-closure Charges||Rs. 0|
FAQs on Machinery Loans
1. When are the fund’s transferred after loan application in LendingKart.com?
After submission and due sanctioning of the loan application, the funds will be transferred in 3 days.
2. Are there any hidden costs or charges for a loan application on LendingKart?
No, there are no extra hidden costs for application or pre-closure for any type of loan on the LendingKart website. All charges and fees are laid out in a detailed fashion.
3. How long is the repayment period for a machinery loan?
The repayment period on equipment financing loans can be as short as 36 months and can even extend out for 10 years. The repayment period highly depends on the amount of machinery loan and the revenue that is earned by the manufacturing business henceforth.
4. How do I calculate the EMI amount on the machinery loan?
You can easily calculate the interest and EMI and even get a stipulated repayment period for certain amounts by using a machinery loan EMI calculator. You can find multiple calculators online and use them freely to adjust your equipment financial proceedings.
5. What is the loan amount on LendingKart.com?
On LendingKart, once can apply for a loan for up to 2 crores in a matter of 3 days.