4 Easy Steps to Get Machinery Loan without Security in India

A small business owner in need for business finance has to go through a lot of hassle in India. Traditional lenders are slow and set in their age-old ways of approving business loans, which can be detrimental for modern businesses who need to move quickly to occupy critical market space. There are several ways quick business finance can benefit an SME, one of them being plant and machinery acquisition.

Equipment is a critical part of operations for a small business because the production of goods and services directly depends on it. Timely upgrade and maintenance of business equipment ensure that a business stays competitive and profitable. However, equipment finance is as difficult to finance as a small business loan. A lender will usually ask to submit the new equipment as collateral for granting the loan.

Getting a machinery loan without security in India:

If you are shopping for machinery loans that do not require collateral, there are very few lenders who can offer you that service in India. The reason being, the Indian banking sector is suffering from an unprecedented NPA crisis, which has made lenders reluctant to finance SMEs without proper collateral. But NBFC lenders like Lendingkart Finance do offer unsecured loans for purchasing plant and machinery if you satisfy their eligibility requirements.

Here is how you can get a machinery loan without collateral from Lendingkart.

Step 1: Check your eligibility

Lendingkart’s website allows you to check your eligibility for a business loan for buying machinery. Simply complete the sign-up process and enter some basic details about your business. You will be offered a loan quote based on the age and type of your business and your sales/earnings.

Step 2: Accept the quote

Once you choose to accept the loan quote, you can move on to provide additional details about your business and upload your documents. The whole process is online and you only need to upload digital copies of the documents for verification.

Step 3: Wait for verification

You can monitor the progress of your loan through the Lendingkart account. It allows you to get real-time updates on your loan application. Additionally, you can also download the Lendingkart Mobile App for Android smartphones to monitor account activity without having to log in every time.

Step 4: Get your loan for machinery

Lendingkart promises business loans within 3-days of loan application. Since the whole process is online there is no possibility of manual interruptions in the approval, verification and disbursal process. The loan amount is directly credited into your business account, so there is no hassle of depositing demand-drafts in the bank, which is the case with most bank loans.

Details of business loans from Lendingkart:

  • Business loan amount: The ticket size for Lendingkart’s machinery loan is ₹ 50,000 to ₹ 1 crore.
  • Flexible repayment: The minimum loan tenure is 1-month and the maximum loan tenure is 12-month for Lendingkart machinery loans.
  • Lowest interest rates: Lendingkart relies on business analytics for deciding interest rates of business loan, so you get the best rates for your machinery loans.
  • Zero prepayment charges: If you decide to repay your loan early, you can do so after paying the first EMI without any foreclosure charges.

How a machinery loan without security can help your business?

Increased Production: With access to the latest technology your business can enjoy higher production in lesser time.

Higher Quality Product: Use of newer technologies also increases the quality of your product, thus, helping in customer acquisition.

Enhanced Profits: Technology also reduces your production costs and allows you to improve margins on the products and services you sell.

Faster Turnaround Time: With new machinery, you can process raw materials into finished goods faster. Thus, speeding up your sales cycle.

Lower Defects: Goods manufactured using the latest machinery also have lower failure rates and hence help in creating goodwill for your company.

Ready to apply for a business loan? Visit the Lendingkart website to start the application process for your first machinery loan.

Five Key Challenges Faced by India’s Women Entrepreneurs

Every day, the age-old stereotypes of India’s patriarchal society are being broken by enterprising women artists, business leaders and political personalities. The newfound institutional and social support has enabled aspiring women to come out and challenge men in almost every field. The small and medium enterprise industry is no different and many such businesses, helmed by women entrepreneurs, are leading innovation and giving stiff competition to their industry counterparts.

However, India is still in early days of a social revolution that demands equal status for all genders. A women entrepreneur in India faces many challenges in starting and continuing her journey. In today’s post, we discuss the five key problems faced by business women in India.

Social Acceptance for Working Women

While India has become more open to working women in recent years, in most cases the acceptability still comes with a caveat. A working woman is expected to balance her time between household chores and her professional work in most families. This may not be a key challenge for educated young women in cities starting their own business but definitely pose a challenge for married women living in urban or semi-urban areas who discover their calling later in life.

Marketing and Promoting their Enterprise

Another key challenge faced by women entrepreneurs is marketing and promotion of their startup business or SME. The matter is further complicated by the fact that online marketing and promotion has taken center stage in recent years. Since, IT is a male dominated field, women entrepreneurs often face competitive disadvantage when hiring online promoters and agencies to market their business.

Problems in Resource Procurement

Be it leasing a space for running their business or making a deal for raw material supplies, most women entrepreneurs face heavy disadvantage and distrust when starting on their own. Once again, it’s the prevailing social bias and general misconceptions about work ethics of women that hinder their access to raw materials, labor and machinery. Therefore, in most cases, women entrepreneurs end up paying above the base rates for procuring operational resources and supply chain contracts.

Getting Funding for SMEs

A major challenge faced by women entrepreneurs is securing funding for their small business. Here the issue is two-fold. The traditional banking system is still run by India’s lumbering bureaucratic system which is slow, biased and male dominated. This makes it very hard for women entrepreneurs to secure funding from a bank as the ultimate power for approving a business loan rests with the bank officials. On the other hand, Angel investors and venture capitalists who fund startups and promising SMEs often balk at working with women CEDs and business owners. Even if they do agree to fund a small business run by a woman, they often try to take control of the company by creating proxy power centers in the company.

A Patriarchal Social Order

As a whole this article may seem like a rant about women entrepreneurs not getting their due recognition because of the men. Well, it is the truth of the day. The key challenge faced by women all over the world and especially in patriarchal societies like India is the dominance of men. Women entrepreneurs face a lot of gender-based discrimination and harassment while working their way to success and these are not limited to the points mentioned above. Therefore, the existence of a biased social order is, without doubt, the biggest challenge faced by working women.

Our Vision for Empowering Women Entrepreneurs

At Lendingkart Finance, we believe in equality and adhere to the ethos defined in the constitution of India. Ensuring safe working environment for women and empowering them is a part of our vision and mission. One of the main reasons why women in patriarchal societies lag behind men is due to the lack of financial freedom. Here, at Lendingkart, we try to rectify that with our unbiased financial support system for small businesses which relies on business performance rather than social bias for granting small business loans.

We have an online business loan application process which analyzes your business for performance and financial stability and gives instant loan quotes, regardless of your gender. To simplify matters further, we have kept the documentation requirements to bare minimum. Once again, document submission is also done online and our system allows you to track your loan application in real-time as we verify the information provided by you.

If you are a woman entrepreneur looking for quick business finance to meet your working capital requirements or business expansion, Lendingkart can offer you a small business loan within 3-days of application. Furthermore, our unsecured business loans come with lower interest rates than many of the traditional banks and lending institutions out there. We also offer flexible repayment options such as monthly or bi-weekly EMIs that allow you to repay your loans easily.

Lastly, a relationship with Lendingkart Finance also gives you the opportunity to connect and network with like-minded SMEs and startups to grow your small business.

Concluding Thoughts

The business scene is still a tough place for women in India, but despite its hardships, enterprising women continue to find new ways to beat the odds placed against them. For the most part it is their own will power and vision that makes it possible for them to overcome the social and professional challenges; and in a small part it is the help from a younger, more open and pragmatic social and business order.