Machinery loans are taken to purchase upgraded machinery and equipment. With the help of machinery loan, businessmen do not need to spend a large part of the working capital. In this article, we will tell you what is a machinery loan and how to get it.
The businessman always wants to give 100 percent to his manufacturing unit. But its success and failures depend on the product / service quality and the time taken in production. Factors that affect the quality of the product are the machinery used.
Machinery and equipment are important assets in a manufacturing business. It is very important that its running wheels do not stop. But existing machinery or equipment may become obsolete due to new technological advances. If it is not rectified in time, the old machinery can have a negative impact on the business. Therefore, it is necessary to buy updated machinery or equipment so that the business continues to produce to its full potential.
What is machinery loan?
There are many lenders who give machinery loans in India. You can either take new machinery or upgrade existing machinery by taking loan. The customer can also pay his money in EMI by purchasing new machinery. You can take machinery loan with security or without security, according to your need. Online lending companies are becoming very popular among customers. In Pune, Delhi, Gurugram, Haridwar and other parts of the country, there are many people who give loans online.
What are online lending companies?
Online lending companies are NBFCs, which provide special business loans to medium, small and small scale industries such as machinery loans, working capital loans, term loans, capital loans and flexi loans. There is also a loan application form on the website of online lending companies. They offer loans through basic qualifications, lower interest rates and fewer documents.
What is eligibility for machinery loan?
Most NBFCs and online lending companies give loans for business up to Rs 5 lakh. To get a loan, the turnover of the previous year should be Rs 10 lakh. The business owner should have his own office premises or house. Also, he has filled the ITR of 2.5 lakh last year.
Equipment loans can be repaid in a flexible period of 6-24 months. Apart from this, if you repay the loan ahead of time, then online lending companies do not charge any kind of foreclosure charge.
What are the advantages of machinery loan?
There are several advantages of machinery loans, which are:
– New or latest machines can be purchased only by paying margin money. Therefore you do not need to spend money from working capital.
– Income tax is exempt on the payment of loan EMI. It also saves a lot of money.
– In addition to quantity, product quality also increases with the introduction of new and upgraded machinery.
– The cost of production from new machines also decreases.
How to get a machinery loan
Machinery loans can be acquired online through a lender’s website or mobile app. You do not need to go to the lender yourself. Online lenders give you the convenience of filling the business loan application online. All information sought in loan application like name, address, contact number etc. should be filled.
After this, you can upload documents in the form of PDF. Keep in mind that the document is information given by the customer as evidence and submit it in the form of a PDF. After submitting the documents, the representative of the lender will further process the loan application form.
If the loan has been approved then the amount will come in your account in a few days. If the application has been rejected, you will be sent a reply with the reason via e-mail or message.