Equipment & Machinery Loans
Equipment & Machinery Loan
Tailored Financing for Your Business Growth
At ReaLoan, we understand that acquiring or upgrading equipment, tools, and machinery is a critical investment for your business. Whether you are a manufacturer, industrial fabricator, logistics operator, or service provider, our Equipment & Machinery Loan is designed to help you scale operations, improve productivity, and stay competitive—without straining your cash flow.
Key Features & Benefits
High Loan Amounts: Access substantial funding to procure heavy machinery, factory equipment, automation lines, or specialized tools—typically ranging from INR ₹50 lakhs to several crores (depending on eligibility and asset cost).
Flexible Tenure Options: Choose repayment terms that align with your business cycle—commonly 12 to 60 months—allowing you to match EMIs with revenue flows.
Competitive Interest Rates: Benefit from interest rates tailored to the equipment asset value and your business risk profile; lower borrowing costs compared to short-term unsecured credit.
Secured or Hypothecated Asset Model: Typically secured against the machinery/equipment being financed, enabling lenders to offer lower rates and higher amounts while you retain usage.
Fast & Digital Processing: Submit your application, upload documentation, and track status entirely online via the ReaLoan portal—designed to minimize processing delays and paperwork hassles.
Minimal Disruption to Business: With the loan covering asset acquisition costs, you preserve working capital and maintain liquidity for operations, enabling business expansion without cash‐flow stress.
Eligibility Criteria for Equipment & Machinery Loans
Minimum Turnover Rs. 50 Lakh Per Annum
Business Vintage at least 2 year’s
Collateral cover 2x to 3x
Loan amount 1 Crore to 10 Crores
Tenure up to 5 Years
Equipment & Machinery Loans Upgrade Process
Our Partners simplified the equipment and machine upgrade loan process to ensure a smooth and efficient experience:
Consultation
Fill in basic business and equipment requirement details via our portal. Our team evaluates your business profile and asset cost to propose suitable terms.
Loan Assessment
Compare available loan options with varying tenures and rates, and choose what fits your plan.
Loans Approval
Once the assessment is complete, Our Partner’s expedite the loan approval process. Our goal is to quickly get your business on the path to equipment or machinery enhancement, ensuring minimal waiting time.
Procure and Upgrade
With the machinery loan approved, you can seamlessly procure the necessary equipment or machinery and initiate the loan upgrade. Upon approval, funds are transferred to facilitate your machinery purchase or delivered right to the seller/manufacturer.
Why Choose "ReaLoan" for your Machinery Loans
Over 20 years of banking & finance experience, led by industry expert
Strong partnerships with leading NBFCs and lenders specializing in asset-financing
Transparent and reliable advisory—no hidden charges, no surprises
Dedicated support through every step: Choosing the right asset, assessing cost, preparing documentation, and final disbursal
Documents and processes streamlined to get you asset-ready faster so you can focus on growth
For more information about our Business Loan for small business or More to begin your upgrade journey with ReaLoan, contact us today. Take the first step towards elevating your business and seizing growth opportunities with upgraded equipment and machinery.
Equipment & Machinery Loan in 7 Days
Loan Application Process
FAQs
Who can apply for an Equipment & Machinery Loan in India?
This loan is available to:
Manufacturers
Traders & industrial units
Contractors & fabrication units
MSMEs & SMEs
Private Limited, LLP, Partnership, Proprietorship firms
Start-ups with minimum vintage (depending on lender)
Most NBFCs prefer minimum 1–3 years of business operations.
What types of machinery can be financed?
Most lenders finance:
New industrial machinery
Used/second-hand machinery (selectively)
CNC machines
Packaging units
Manufacturing equipment
Construction machinery (JCB, loader, crane, concrete mixer etc.)
Printing & textile machines
Medical & diagnostic equipment
Food processing machinery
Loan approval depends on machine age, resale value & dealer invoice.
What is the loan amount I can get?
Banks/NBFCs generally offer:
₹5 lakh to ₹25 crore for MSME & industrial machinery
Higher limits available based on business turnover and machine cost
Some lenders finance up to 75–100% of machinery invoice value
Large project-based finance may exceed Rs. 25 crore through structured credit.
What is the interest rate for Machinery Loans?
Rates vary based on:
Applicant profile
Business vintage
Machine type
CIBIL score
Cash flow & banking stability
Typical interest rate range:
NBFCs: 12% – 18%
Banks: 9.50% – 14%
Private lenders: 14% – 20%
Is collateral required for an Equipment or Machinery loan?
For new machinery, many lenders offer:
Hypothecation-based funding (machine itself becomes the security)
Sometimes additional collateral may be required for:
Higher loan quantum
Weak financials
High-risk industries
Used machinery loans
What documents are required for a Machinery Loan?
Common documents include:
KYC of business & promoters
GST Certificate / Trade License / ROC documents
Last 12 months bank statement
ITR + Audited Financials (last 2–3 years)
Proforma Invoice of Machinery
Existing loan details & EMI statements
Business registration documents
Some lenders also require site inspection and technical evaluation.
How long does it take to get the machinery loan approved?
Typical timeline:
NBFCs: 3–7 working days
Banks: 7–15 working days
Private lenders: 48–72 hours (express funding)
Approval time depends on document readiness & machine inspection.
Can a startup apply for a Machinery Loan?
Yes — provided the startup has:
Minimum 6–12 months of operations
Proper GST filings
Purchase orders or confirmed business pipeline
Good repayment ability
Many NBFCs also check promoter’s personal CIBIL score (650+ preferred).
Do lenders finance used or second-hand machinery?
Yes, but with conditions:
Machine age < 7–10 years (varies by lender)
Verified valuation report required
Funding usually 50–70% of machine value
Only reputable dealer invoices accepted
Is CIBIL score important for Machinery Loans?
Yes.
For business owners & directors:
650+ score is preferred
Lower scores may require collateral or higher interest rates
Strong financials can compensate for borderline scores
What charges apply to Equipment & Machinery Loans?
Typical charges include:
Processing fee: 1% – 2%
Technical evaluation fee: As applicable
Documentation charges: ₹2,000 – ₹15,000 (varies by lender)
Foreclosure charges: 2% – 5%
Penal interest: 2–3% per month on overdue amount
Can I get 100% funding for machinery?
Yes, some NBFCs offer:
100% invoice value funding for specific industries like textiles, packaging, medical equipment
However, approval depends on credit profile and machine type.
Is credit insurance required?
Some lenders may mandate:
Credit life insurance for promoter
Machinery insurance against physical damage
This helps reduce lender risk and enables better loan terms.
Can I get top-up or enhancement on existing machinery loans?
Yes, based on:
Existing repayment track record
Current machine value
Updated balance sheet
Business growth indicators
Many NBFCs offer top-ups after 6–12 EMI payments.
What happens if I miss an EMI?
Consequences:
Late payment penalty
Penal interest
CIBIL score impact
Risk of machine hypothecation enforcement if default continues
Always maintain EMI discipline to avoid credit issues.
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