Machinery Loan
Today in the world of fierce competition and ever changing client’s product requirement, it is necessary to automate, upgrade and improve the efficiency of shop floor with various new types of machinery and equipment.
Machinery loans can be seen in the various categories of business.
Agro based Enterprises
The agro based Enterprises means Enterprises engaged in the above activities-Tamarind Processing, Noodles, Pepsi coca-cola, Milk and Milk Products, Pulses, Confectionary, Soya products, Bio Fertilizers, Jagri, Jagri Powder etc.
Forest/Mineral/Wood based Enterprises
Forest, mineral and wood based Enterprises means Enterprises engaged in the activities of herbal products, electrical switch boards, saw mill, wooden furniture etc.
Food based Enterprises
Food based Enterprises means Enterprises engaged in the activities of- Baby food, Custard apple, Jam, Jelly, Juice, Pickles, Ayurvedic medicines etc.
Leather based Enterprises
Leather based Enterprises means Enterprises engaged in the activities of- Ladies and Kids Foot wears, Ladies Purses and Bags, School bags, Sheet Cover etc.
Rubber/Plastic/Paper based Enterprises
Rubber, Plastic, Paper based Enterprises means Enterprises engaged in the activities of- Screen Printing, Offset Printing, Corrugated Boxes, Digital Flex Printing, PVC pipes, Card Board Boxes, etc
Chemical based Enterprises
Chemical based Enterprises means Enterprises engaged in the activities of- Chemical products, Chemical Services, Chemicals & Pharma Industries etc.
Metal & Engg. based Enterprises
Metal & Engg. based Enterprises means Enterprises engaged in the activities of Steel Furniture, Rolling Shutters, Deserts Coolers, Wire nails etc.
Electric/Electronic based Enterprises
Electric/Electronic based Enterprises means Enterprises engaged in the activities of- Decorative Bulbs series, Emergency Light Mfg. Units, TV Repairing Units, Auto Horns, Radio, Transistor Assemble Units etc.
Ready made Garments based Enterprises
Ready made Garments based Enterprises means Enterprises engaged in the activities of Readymade Garments, Knitting Sweaters etc.
Service based and other Enterprises
Service based and other Enterprises means Enterprises engaged in the activities of Hotels, Bore well, Computer training institute, Software development, Repairing and Servicing units, Tailoring, Xerox, Typing centers etc.
Documents required for processing Machinery Loan
- At least 20% of the money to be infused by the company to buy the equipment.
- Minimum 2 years of ITR filed and profitability to be shown in the Balance Sheet.
- No bad remarks on company or promoter, Court cases, Legal hearing etc.
- Basic CIBIL criteria to be met
- Machine purchased to be hypothecated to lender till the repayment of the loan is done.
- Standard M/c’s are funded by any lender since customized machines won’t fetch any buyers in secondary markets in event of default.
- Usually, amount lent is inclusive of 80% of the total Invoice value which is inclusive of GST. Flexible payment options are available with lenders, with moratorium, without the moratorium etc.