Machinery Loan

A machinery loan is a type of business loan taken for the purpose of financing the purchase of new machinery or equipment for a business. Modern business tools and state-of-the-art equipment are a great way to expand your business but finding the right financing for them can be difficult at times. Machinery loan amakes equipment financing easy and removes any roadblocks in achieving business success.

Product Offerings

LoanGenie’s machinery loans involve the following features –

• Loan Amount – We offers a wide range of customized loan options ranging from Rs. 5 lakhs to Rs. 75 lakhs to meet machinery upgrade needs, both big and small
• Loan Tenure – Our machinery  loans can be issued for a tenure that ranges from 12 months (one year) to 36 months (three years)
• Interest Rates – We charge competitive interest rates on our machinery loan offerings, starting at 19%
• Multiple Product Offering – Our machinery loans offer businesses flexibility and can be customized to meet unique business needs
• No Collateral Needed – Getting a  business loan for machinery with Us is hassle-free as we do not ask for any collateral
• Structured EMI Options –We offer businesses the flexibility to choose an EMI option that is best-suited to meet their budget
• Easy Eligibility – Even if others may say no, we will not. Rather, we will closely work together with you to design a loan that is custom-made for you

Features and Advantages

Equipment financing via a machinery loan offer the following advantages –

• Higher Productivity – A machinery loan allows you to upgrade to newer technologies using which you can produce more units in lesser time. As a result, you will experience greater sales and be able to meet your customer needs in a timely manner
• Better Quality – Naturally, as you upgrade to newer machinery, you will be able to manufacture products that are high in quality, strengthening the trust your customers have in you
• Faster Turnaround Time – The machinery you invest in via machinery finance solutions will improve your manufacturing efficiency and result in timely delivery of products. With faster turnaround time, you can meet your production targets and improve your business relations
• Higher Profits – Improved productivity will naturally improve sales, leading to greater ROI. Moreover, the increase in productivity will reduce the cost per unit, further enhancing your profits

What is the Eligibility for Machinery Loan?

To get a machinery loan with Us, you must meet the following eligibility criteria –

• You must be within 25 to 65 years of age
• Your business turnover must show an upward trend
• Your business must have been profitable for three consecutive financial years
• Your balance sheet must be audited by a registered Chartered Accountant

What are the Documents Required for Machinery Loan?

The following documentation in addition to the duly filled loan application is required for the approval of a machinery loan witUs–

• Photo Identity Proof – copy of Voter ID/Passport/Driving License/Aadhaar Card
• A copy of certified bank statements of the last six months
• Business Proof documents – Trade License/Sales Tax Certificate/Sole Proprietorship Declaration/ Partnership Deed/Income Tax Returns along with computation for the last two years/Profit and Loss Statement and Balance Sheet for the last two years

General Charges 

The following three components make up the general charges –

• Interest Rate- The rate at which you are required to repay your business loan, inclusive of the Principal amount and the interest amount, is known as the interest rate of a business loan
• Processing Fee – Processing fee is a one-time fee charged by lenders at the time of processing the loan application. It is non-refundable even if the loan does not get sanctioned
• Penal Interest/Additional Interest – Penal interest is the rate of interest that will be charged on delayed monthly instalments. The borrower will now be required to pay the delayed instalment inclusive of the additional interest

The following are the miscellaneous charges involved under machinery loan –

• Bounce Charges– Bounce charges are those charges that are levied in case your EMI gets bounced. In other words, these charges are levied when you miss an EMI payment due to insufficiency of funds in your bank account
• Mandate Rejection Service Charge – Mandate rejection service charge is the charge levied on the rejection of any of the services rendered by the lender
• CCOD Annual Maintenance Charges – CCOD Annual maintenance charges are the charges levied on those who have chosen a flexible funding option such as Cash Credit or Overdraft. It is charged for the maintenance of the Overdraft account.
• Document Processing Charges – There are a number of documentation stages that need to be completed – business loan agreement, indexing, etc. The charge levied on the processing of such documents is known as document processing charges
• Outstation Collection Charges – If the cheque you have issued for payment has been made to a non-local branch, lenders will levy an outstation collection charge for the collection of such cheques
• Statement of Accounts – To get your Statement of Accounts – a bank statement wherein is given a list of all transactions made from your bank account during a given period, a certain amount will be charged. But this amount will be charged only for a hard copy, the soft copy being free of cost.
• Loan Cancellation Charges – Loan cancellation charges are levied by the lender when you wish to cancel your business loan following the process of loan disbursement
• Instrument Swap Charges – If you wish to exchange or swap your business loan liability or the cash flow with a different financial instrument, you can do so after paying instrument swap charges.
• Duplicate Repayment Schedule – You will receive a repayment or amortisation schedule from your lender – a table that displays how your loan evolves over time. If for some reason, you need a duplicate of this schedule, you can apply for a new one, available in both hard and soft copies. While the soft copy is free of charge, a certain fee will be charged for a hard copy.
• Duplicate NOC – If you end up losing your NO Objection Certificate by any chance, you can apply for a new one after paying a certain fee
• Post-Dated Cheque Charges – If you make an EMI payment using a post-dated cheque – one in which the date mentioned is subsequent to the date in which the cheque was drawn, you will be charged a fee known as post-date cheque charge