Machinery Loan for MSME (Micro, Small, and Medium Enterprises)

Trusted by over 5,000 businesses across 20+ cities and towns. Loans worth over 500 crores sanctioned so far.

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Trusted by over 5,000 businesses across 20+ cities and towns. Loans worth over 500 crores sanctioned so far.

Machinery Loan for MSME (Micro, Small, and Medium Enterprises) in 2023

Machinery loans are a type of business loan designed to help SMEs in India finance their equipment purchases. With the Indian government’s focus on promoting domestic manufacturing and increasing exports, machinery loans have become a critical financing option for businesses looking to invest in modern and efficient equipment. Our machinery loan page provides comprehensive information to help business owners make informed decisions about their financing needs.

Machinery Loans are provided to a Manufacturer to buy machinery both Imported and Indian. It is available both for existing Manufacturers and startups looking forward to starting their business, expanding their production capacity or for product improvisation.  But, since our mission is to EMPOWER MSMEs Financially irrespective of their number of years in business, our machinery loan services are available for startup manufacturers as well.

What is the Eligibility Criteria for Machinery Loan?

  • Applicants should be 21 years and above
  • Applicant with good credit score and repayment history
  • The firm/company must have procured all the relevant statutory permissions and licenses to start with Manufacturing Business

Calculate EMI on your equipment finance required for your business in just 3 Easy Steps, Click here 

What are the Benefits of Machinery Loan for MSME?

  • It helps to buy new equipment/machinery for manufacturing business
  • Flexible loan repayment options with easy EMIs
  • Machinery loan for startups is an additional benefit for new businesses
  • Collateral-free loans to buy plant & machinery
  • Moratoriums of Minimum 3 months to maximum 24 months provided 
  • Attracts Government Subsidies ranging from 15% to 200% of the cost of machinery
  • Phase-Wise Disbursements are permissible.
  • Interest charged on per day/amount utilization basis

How to get Government Subsidy for Machinery?

  • There are multiple Government Subsidy schemes for Machinery in India. These Subsidies are given by various state Governments as well as Central Government too. 
  • Eligibility for Government Subsidy for Machinery Loan depends on which loan the Manufacturing Unit has availed to buy machinery 

What is the Interest Rate for Machinery Loan?

Interest rates offered for machinery loans may vary depending on business requirements and the financial institution. However average cost of interest for Machinery Loan ranges from 9.50% to 15% per annum.

What are the Documents Required for Machinery Loan?

  • KYC documents of the applicants along with the firm/company, such as PAN Card, Aadhaar, Udyam, Utility Bills (Water and Electricity Bills)
  • Relevant Business Licenses 
  • Provisional/ Commercial Invoices of the Machinery 
  • 3 Years Income Proof. 
  • Additional documents, as required by the financial institution

Which Loans are given to buy/purchase Machinery?

  • For Indian Machinery, Term Loan of 5 to years is given, repayable in EMI’s after the end of Moratorium.
  • For Imported Machinery, there are multiple debt instruments/loans:
  • Term Loan in INR (TL)
  • Foreign Currency Term Loan (FCTL)
  • Letter of Credit  (LC)

What about Machinery Loans without Collateral Security? (UNSECURED MACHINERY LOAN)

Under Government sponsored CGTMSE scheme, any Manufacturing Business irrespective of number of years in business is eligible for Machinery Loan Without Collateral Security.