Machinery Loan
Finance new or used machinery, upgrade equipment, and expand your production capacity. Up to 90% funding from leading banks and NBFCs.
Overview
A Machinery Loan (also called an equipment loan) is designed to help businesses purchase, upgrade, or replace machinery needed for operations. It is widely used by MSMEs in manufacturing, construction, agriculture, and small industries. The machinery itself often acts as collateral, making approvals easier. At ZatpatLoans.com we help you compare 125+ lenders for the lowest rate and best repayment structure on new machinery, used machinery, equipment finance, lease finance, and hire purchase options.
Key Features
Medium to Long Tenure
Repayment from 1 to 10 years to keep EMI manageable.
High Loan Amount
Up to 75%–90% of machinery cost; 100% funding for strong profiles.
Machinery as Collateral
Equipment itself serves as security — minimal additional collateral needed.
Tax Benefits
Avail depreciation and interest deduction benefits under Income Tax Act.
Flexible Structures
Choose from term loan, lease finance, or hire purchase options.
Moratorium Available
3–6 month moratorium possible during installation/commissioning.
Other Services
Eligibility Criteria
- Business vintage of minimum 2–3 years (some lenders consider startups)
- Stable income and consistent profitability
- Good credit score — CIBIL 650 to 750+ preferred
- Eligible entities: Proprietorship, Partnership, LLP, Pvt Ltd, MSMEs, SMEs
- Industry risk and end-use of machinery evaluated by the lender
- Promoter contribution of 10%–25% of machinery cost typically required
Documents Required
- KYC: PAN Card, Aadhaar Card of proprietor/partners/directors
- Business registration / incorporation certificate
- Last 6–12 months current account bank statements
- Last 2–3 years ITR with computation of income
- Audited financial statements — P&L and Balance Sheet
- Machinery quotation / proforma invoice from supplier
- GST registration and last 12 months GST returns
Application Process
Share machinery quotation and business profile to compare lenders and rates
Submit KYC, financial documents, and supplier invoice for application
Bank evaluates machinery, business viability, and credit score
Sanction letter issued, agreement signed, payment made directly to supplier
Best Tips for Machinery Loan
Compare banks vs NBFCs — banks offer lower rates, NBFCs offer faster turnaround.
Check total cost — include processing fees, foreclosure charges, and insurance costs.
Choose tenure carefully — longer tenure reduces EMI but increases total interest.
Verify supplier credibility and ensure machinery has resale value.
Compute ROI — ensure the machinery generates enough income to service the EMI.
Explore CGTMSE scheme for collateral-free machinery loans up to ₹5 Crore.
Maintain a CIBIL score above 700 for the best interest rates and faster approval.
EMI Calculator
Plan your finances with our easy-to-use EMI calculator. Get instant results for any loan amount.
Machinery Loan FAQs
Common questions about machinery loan services.
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Compare rates from 125+ banks. Our experts will find the perfect machinery loan for you.
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