Business finance
Machinery and Equipment Loan
Finance the machine on the machine, and keep your working capital for running it.
Loans for new and used industrial machinery, medical and construction equipment, from ₹5 lakh to ₹5 crore, at rates from about 10.5% p.a., funding up to 90% of invoice value with tenures up to 7 years.
- Rate from
- 10.50% p.a.
- Amount
- ₹5 L to ₹5 Cr
- Tenure
- 1 to 7 years
- Processing fee
- 0.5% to 2% of the loan amount plus GST.
Check machinery loan eligibility
Free pre-screen across our lender panel. No bureau enquiry.
About machinery and equipment loans
Equipment loans are secured by the asset being bought, which makes lenders comfortable with higher amounts and longer tenures than an unsecured business loan. Manufacturer tie-ups, CGTMSE coverage and government subsidy schemes can reduce the cost further for eligible MSMEs.
We arrange finance for CNC machines, printing and packaging lines, medical and diagnostic equipment, construction machinery and commercial kitchens, among others, from banks, NBFCs and captive financiers of equipment manufacturers. We also structure loans for imported equipment and refinancing of unencumbered machinery.
Rate note: Bank and captive finance for new equipment from strong manufacturers starts near 10.5% p.a.; used equipment and smaller firms price higher. Funding: Up to 90% of invoice value for new equipment; 60% to 75% of valuation for used equipment.
Why borrowers choose it
What a machinery and equipment loan through LoansPartner gets you
Up to 90% funding
Preserve cash for installation, raw material and staffing.
Asset-backed pricing
Cheaper than unsecured business credit because the equipment is the security.
Scheme and subsidy support
We identify CGTMSE, CLCSS and state-level schemes your purchase qualifies for.
Manufacturer tie-ups
Captive finance often brings promotional rates for popular equipment brands.
Common uses
- Capacity expansion with new machines
- Replacing ageing equipment
- Setting up a diagnostic centre or lab
- Construction and earth-moving equipment
- Refinancing owned machinery for liquidity
Eligibility
Who qualifies
Norms vary by lender. These are the ranges across our panel; we tell you precisely where your profile fits before you apply.
- Age
- Promoters aged 25 to 65
- Income
- Business turnover and profitability adequate to service the EMI, assessed with projected cash flows from the equipment
- Credit score
- 700 and above for promoters
- Employment
- Manufacturing, healthcare, construction, printing, food processing, logistics and other equipment-intensive businesses. 2 to 3 years of business vintage
- Also
- Proforma invoice from an approved manufacturer or dealer
- Also
- Udyam registration improves scheme eligibility
Documents
What to keep ready
A complete file is the single biggest driver of a fast sanction. We collect everything digitally in one go.
- Entity and promoter KYC
- Last 2 to 3 years' financials and ITR
- Last 12 months' bank statements
- GST returns
- Proforma invoice and technical specifications of the equipment
- Udyam certificate and existing loan sanction letters
How it works
Five steps, one point of contact
- 01
Share the equipment details and quotation, alongside your business financials.
- 02
We shortlist lenders, including captive financiers for the brand, and check scheme eligibility.
- 03
Documents are submitted; the lender assesses cash flows and the equipment's resale market.
- 04
Sanction with Key Fact Statement; the lender pays the supplier directly.
- 05
Equipment is delivered and hypothecated. We stay on for future expansion needs.
Indicative EMIs
What the instalment looks like
Computed at the lowest rate in this product's range. Run your own numbers in the EMI calculator.
| Loan amount | 2 yr | 3 yr | 5 yr | 7 yr |
|---|---|---|---|---|
| ₹5,00,000 | ₹23,188 | ₹16,251 | ₹10,747 | ₹8,430 |
| ₹10,00,000 | ₹46,376 | ₹32,502 | ₹21,494 | ₹16,861 |
| ₹25,00,000 | ₹1,15,940 | ₹81,256 | ₹53,735 | ₹42,152 |
| ₹50,00,000 | ₹2,31,880 | ₹1,62,512 | ₹1,07,470 | ₹84,303 |
| ₹1,00,00,000 | ₹4,63,760 | ₹3,25,024 | ₹2,14,939 | ₹1,68,607 |
Lenders
Where we place machinery and equipment loan files
A selection from our panel. The best lender for you depends on your profile, city and the property or asset involved.
FAQs
Machinery and Equipment Loan questions, answered
Can I finance used machinery?
Yes, with select lenders, at 60% to 75% of assessed value and shorter tenures. The machine's age, make and resale market matter.
Is CGTMSE coverage available for equipment loans?
Eligible micro and small enterprises can get collateral-free term loans through banks under the CGTMSE guarantee, which can reduce or remove the need for additional security. We help you check eligibility.
How is a machinery loan different from a business loan?
A machinery loan is secured by the equipment, so it offers higher amounts, longer tenures and lower rates. A business loan is unsecured and faster but pricier.
Related products
Sometimes a different product is cheaper. We will say so.
Business Loan
Unsecured business loans from ₹2 lakh to ₹1 crore for proprietors, partnerships and companies, at rates from about 14% p.a., with tenures up to 5 years and minimal collateral requirements.
- Rate from
- 14.00% p.a.
- Up to
- ₹1 Cr
Working Capital Loan
Working capital facilities from ₹10 lakh to ₹5 crore, including overdraft, cash credit, dropline overdraft and invoice discounting, at rates from about 11% p.a., secured or unsecured.
- Rate from
- 11.00% p.a.
- Up to
- ₹5 Cr
Professional Loan
Collateral-free loans up to ₹1 crore for doctors, chartered accountants, company secretaries, architects and other professionals, at rates from about 10.5% p.a., with tenures up to 7 years.
- Rate from
- 10.50% p.a.
- Up to
- ₹1 Cr
Guides
Read before you apply
Get your machinery and equipment loan shortlist.
Share your requirement in two minutes. Our credit desk pre-screens your profile and calls with lenders, rates and next steps. No fee, no bureau enquiry.