As a business owner, it is necessary to understand the significance of any equipment or tool that allows performing in your line of duty. Every businessman needs some equipment at one point; some may need the use of machinery for a short period of time while others may need it for a longer time.
A machinery loan provides business owners with a mandatory amount of capital to fund start-up expenses and to gain financial help. Just like other loans, the business loan is offered at a pre-set interest rate. It also works as an excellent tool for corporate since it increases productivity while maintaining its normal operating parameters.
It is not an easy task to run and manage the manufacturing business as you are required to meet the concerned demand for your products. There are times when manufacturing units are unable to procure better equipment to keep the required demand.
Benefits of machinery loan for business owners
Latest technology
With the help of unsecured machinery loan, it becomes quite easy to purchase the updated machinery and equipment that eventually increases production and efficiency. The procurement of new technology helps you outshine your competitors.
Latest technology
With the help of unsecured machinery loan, it becomes quite easy to purchase the updated machinery and equipment that eventually increases production and efficiency. The procurement of new technology helps you outshine your competitors.
On-time production
The better machinery enables a better turnaround time. Within the time limit, the products can be produced and also help to maximize the productivity of the manufacturing company as a whole.
The better machinery enables a better turnaround time. Within the time limit, the products can be produced and also help to maximize the productivity of the manufacturing company as a whole.
Less paperwork
There is minimal documentation required in this loan process as there is no collateral involved as security. Due to this, the machinery loan is processed and disbursed quickly.
There is minimal documentation required in this loan process as there is no collateral involved as security. Due to this, the machinery loan is processed and disbursed quickly.
Long tenure
The repayment tenure is approximately seven years thus, making it convenient and flexible for MSMEs to repay the amount. Also, it helps to make the cash flow smoother. Also, not forget to confirm the machinery loan interest rate on the total amount. Check machinery loan emi calculator to ensure the payable amount and monthly installment in the given tenure.
The repayment tenure is approximately seven years thus, making it convenient and flexible for MSMEs to repay the amount. Also, it helps to make the cash flow smoother. Also, not forget to confirm the machinery loan interest rate on the total amount. Check machinery loan emi calculator to ensure the payable amount and monthly installment in the given tenure.
Instant funds
When it comes to buying equipment, you need to act immediately and carefully so that the business’s productivity is not affected. In this type of loan, the funds are transferred within 24 hours, keeping the need in mind as compared to other loans. Also, it ensures that you do not waste any time in using the capital to boost your business.
When it comes to buying equipment, you need to act immediately and carefully so that the business’s productivity is not affected. In this type of loan, the funds are transferred within 24 hours, keeping the need in mind as compared to other loans. Also, it ensures that you do not waste any time in using the capital to boost your business.
Better cash flowOne of the major advantages of machinery loans is that you can easily find financing with no down-payment. This enables you to make use of your working capital for other immediate needs.
Easy creditAt the time of applying for this loan, you do not have to arrange for collateral in the form of property or other corporate assets. The best thing about this type of loan is that it is available on a completely collateral-free basis.
Lesser chances of a defectThere are times when there is a defect in the production machine itself but with the help of machinery loan, chances for such defects are largely reduced and maximizing the finesse of the final products and production chain.
Documents required for machinery loan
To avail the machinery loan without security, all you need to do is submit the minimal documentation. Some of the important documents include:
To avail the machinery loan without security, all you need to do is submit the minimal documentation. Some of the important documents include:
Passport size photo
KYC documents
PAN card, AADHAR card
Business proof – certificate of business existence
Important financial documents
Previous month bank account statement
GST receipt of the proprietor
Last balance sheet audited by CA
Eligibility criteria for machinery loan
To avail the instant loan, you will have to fulfill the following machinery loan eligibility criteria as mentioned below:
KYC documents
PAN card, AADHAR card
Business proof – certificate of business existence
Important financial documents
Previous month bank account statement
GST receipt of the proprietor
Last balance sheet audited by CA
Eligibility criteria for machinery loan
To avail the instant loan, you will have to fulfill the following machinery loan eligibility criteria as mentioned below:
You should possess 25-55 years of age
Your business should hold a period of at least 3 years
You should have filled your business’s Income Tax returns for minimum 1 year
Other necessary financial documents at the time of verification
Apart from this, here is a list of business loan customer profiles that it considers:
Your business should hold a period of at least 3 years
You should have filled your business’s Income Tax returns for minimum 1 year
Other necessary financial documents at the time of verification
Apart from this, here is a list of business loan customer profiles that it considers:
Self-employed professional (SEP) – People practicing CA, CS, architects, and allopathic doctors fall under this category. Documents showing proof of qualification also need to be submitted.
Self-employed non-professional (SENP) – People who are retailers, proprietors, traders & manufacturers, service providers, entities, partnerships, limited liability partnership, private limited & closely held limited companies can avail this loan.
Self-employed non-professional (SENP) – People who are retailers, proprietors, traders & manufacturers, service providers, entities, partnerships, limited liability partnership, private limited & closely held limited companies can avail this loan.
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