What comes to your mind when you think of a machinery loan? The name of this loan is pretty indicative about what it really means, i.e. it is a machinery purchases loan for businesses, MSMEs and other manufacturing/services companies. A machinery purchase loan is basically called a machinery loan in contemporary financial parlance. It has to be admitted, however, that machinery loans are key elements for future growth as far as almost any manufacturing or other business is concerned, i.e. any company wherever there is a need for equipment/machinery for operations, production and so on.
Why is a machinery loan so important for any production based organization? This is basically because machinery is the lifeblood of these businesses and to churn out products faster and better, new equipment has to be purchased continually in tandem with upgradation of old machinery and tools to newer ones for ramping up overall productivity and output. Every organization engaged in manufacturing or even in some particular service sectors, requires a loan for machinery purchases. These loans help these companies buy all the equipment they require without having to expend a huge amount of money in one go. They can simply scale up faster with better machinery and repay the loans within the prefixed tenure while boosting their business activities and subsequently turnover alike.
Now, if you want a machinery loan in Pune, Bangalore & Chennai for your business, you will have several kinds of options to choose from. There are dedicated machinery loans for MSMEs that are tailored to offer greater convenience and faster business growth. Machinery loans here are suited for micro, small and medium manufacturing units alike in almost any stage of their lifecycle. Finance and refinance are provided to new and used machinery depending on your requirements.
Here are the 5 Things that you should know about machinery loans-
- No Collateral/No security deposit is often the norm for customers applying for machinery loans. This gives rise to greater peace of mind and keeps one free from the hassles of having to mortgage any asset.
- Repayment Tenure up to 7 years- For facilitating greater convenience and flexibility for entrepreneurs and MSMEs, repayment tenure up to 7 years can be selected in order to make cash flow smoother.
- Loan Amounts Are Offered Up to 90% of Machinery/Equipment Value- In order to help MSMEs and entrepreneurs scale up faster with the latest equipment, loan amounts up to 90% of machinery/equipment value are offered in many cases.
- Zero Pre-Payment Charges- You will not have to encounter hefty pre-payment charges when you pay off your loan with any surplus funds. This also ensures maximum convenience for business borrowers. However, this depends from one organization to another.
- Swift Fund Disbursal- Post verification, disbursal of funds is made in quicker time as compared to other loans in order to give businesses and MSMEs fast access to much needed capital for buying machinery and scaling up operations.
TAB Capital, a digital lending FinTech NBFC offers the finance solutions that specially cater to any MSME’s financial need. You can check out machinery loan offered by TAB Capital for MSMEs which offer a truckload of benefits along with instant approval & smooth disbursal.