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Tata Capital offers Machinery Loans to help businesses update their existing machinery and scale to greater heights. Keeping in mind the rapid advancements in technology, the latest machinery and equipment are necessary for the success of any business. For manufacturing businesses, procuring top-of-the-line machinery is even more crucial to ensure maximum productivity. They not only help them reduce the dependency on manpower but also allow them to meet peak season demand for their products. Businesses who need machinery finance to buy new machines can opt for a machinery loan in India.

What is a Machinery Loan?

A machinery loan is typically provided to business owners to buy new machines or equipment. Also known as machine loan finance, this is a special type of business loan that can be taken exclusively for buying new machines or upgrading existing equipment. Several lending institutions provide machinery loan for new business in India to ensure financial roadblocks don’t hinder them from achieving success.

With a Tata Capital machinery loan, you can get machinery finance of up to Rs. 90 lakhs with simple eligibility criteria and minimal documentation. Moreover, our machinery loan interest rate is among the lowest in the market, starting from just 16% per annum*.

Product Offerings

Apart from the affordable machinery loan interest rate, our loan for machinery purchase comes with the following offerings:

  • Loan Amount

    We offer customized machinery finance from Rs. 0.40 lakh to Rs. 90 lakhs so that you can meet all your requirements with ease

  • Loan Tenure

    Our machinery loans are issued for the tenures of 12 months to 60 months so that you can plan your repayment conveniently

  • Interest Rates

    Our machinery loan rate of interest is very competitive, starting from just 16% per annum*

  • Customized Products

    Our machinery loans are highly customizable. You can choose your machinery loan interest rate, amount, and tenure as per your business needs

  • No Collateral

    We do not ask for any collateral or security for providing a loan for machinery purchase

  • Multiple EMI Options

    With our machine loan finance, you can choose to pay your machinery loan EMI as per your income pattern

  • Easy Eligibility

    We believe in supporting every business owner in India, and that’s why we offer machinery loan for new businesses as well as large enterprises with simple eligibility

Features and Benefits of a Machinery Loan

Tata Capital can be your perfect machinery finance partner with a machinery and equipment loan. Here are some advantages of getting our machine loan finance for your business:

Higher Business Productivity

If you’re into a manufacturing business, you are dependent on machines for the production of your goods. By procuring modern machines with new-age technologies, you can improve your business productivity to exceptional levels. As a result, you will be able to achieve greater sales and fulfill your customers’ needs in time.

Better Quality

Newer machines and equipment not only help in improving the quantity of your production but also the quality. When you upgrade your business machinery, you can manufacture top-quality products. This helps in strengthening the trust of your customers and gaining an edge over your competitors.

Higher Profits

By improving your production quantity and quality, you can escalate your profit margins in no time. Investing in modern machines can also help you reduce the dependency on humans and minimize your production costs. Moreover, a lower machinery loan rate of interest with Tata Capital makes these machines highly affordable, further enhancing your profits.

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Eligibility Criteria & Documents Required for a Machine Loan

Tata Capital offers machinery loan for new businesses as well as established companies. To avail of a machinery loan from us, you are required to fulfill the following eligibility criteria:

  • Your age should be at least 21 years at the time of applying for the business loan and not more than 65 years at the time of the last EMI

  • Your credit score should be at least 675 or more

  • Business should be profitable

  • Minimum 2 years business stability

  • Banking balance should be at least Rs. 5000

    • Please note that we may also ask for some other eligibility requirements at the time of loan processing.

    When applying for a machinery loan, you must produce the following documents:
     

    • Identity proof (Aadhar card, PAN card, Driving Licence, passport, etc.)
    • Address proof (Aadhar card, rent agreement, utility bills, etc.)
    • Other relevant KYC documents
    • Business ownership proof
    • Income tax returns (ITR) for the last 1 year
    • Balance sheets and profit and loss statements for the last 2 years

Machinery Loan Interest Rate and Charges

At Tata Capital, we levy three types of charges on machinery loans - General Charges, Miscellaneous Charges, and Foreclosure Charges. The details of the particular charges under these three categories are mentioned below:

General Charges

Here are the general charges applicable on a Tata Capital Machinery Loan:

Type of Fee Applicable Charges

Interest Rate

Starts at 16% p.a.*

Processing Fee

Upto 4% of the loan amount

Stamp Duty

As Applicable

Penal/Additional Interest Rate

3% on Overdue amount per month
  • Interest Rate - It is the rate at which the interest would be charged on your machinery loan. Machinery loan rate of interest at Tata Capital starts from 16% per annum*
  • Processing Fee - It is a one-time fee charged by the lender for processing your machinery loan application. This fee is non-refundable even if the loan doesn’t get sanctioned
  • Stamp Duty - It is a legal fee that you will have to pay for the preparation of your loan agreement. It can vary from one state to another
  • Penal Interest or Additional Interest - It is the interest that will be charged over and above your existing machinery loan interest rate in the case of delayed EMI payment

Miscellaneous Charges

The table below depicts the miscellaneous charges applicable to your Tata Capital Machinery Loan:

Type of Fee Applicable Charges

Prepayment / Foreclosure Charges

Foreclosure charges on Term Loan Facility:
**4.5% on the principal outstanding at the time of foreclosure + Applicable Taxes

No foreclosure is allowed in first 9 months.6.5% charges if foreclosed within 9 months

 

Foreclosure charges on Top Up:
2.25% on the principal outstanding at the time of foreclosure

Foreclosure charges shall be levied only if new rate is lower than existing rate.

 

**Foreclosure Charges in Dropline Facility:
4.5% on the Dropped down limit amount + Applicable taxes

No foreclosure is allowed in first 9 months.6.5%charges if foreclosed within 9 months

Processing Charges

As Applicable

Payment Instrument swapping

 

Rs. 550/-

Dishonour Charges

Rs 600 for every Cheque/ Payment Instrument Dishonor

Mandate rejection service charges

Rs. 450/-

(Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by Borrower’s bank for any reasons whatsoever.)

Annual Maintenance Charges (Dropline facility)

First Year: 0.75% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month


Subsequent Years: 0.50% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month

Document processing charges

Rs. 1999/-

Cancellation charges

2% of the Facility amount OR

Rs. 5750/- Whichever is higher

Duplicate Repayment Schedule

Rs. 550/-

Duplicate NOC

Rs. 550/-

Statement of Account (SOA)

Customer portal – Nil

Branch walk in – Rs. 250 /-

Foreclosure Letter Charge

Customer portal – Nil

Branch walk in - Rs 199/-

Post Dated Cheque Charges Rs

Charges Rs 850

section 138 and section 25 filing

At Actual

Arbitration Filing

At Actual

Receiver Order

At Actual

Notice

At Actual

Legal Notice

At Actual

Lawyer fees

At Actual

Execution of award

At Actual

Note: 
 

  • The amounts are net of taxes such as GST, etc.
  • GST, other Government taxes and levies as applicable, will be payable on all fees and charges in above mentioned

 

  • Bounce Charges - Bounce or dishonor charges are levied by the lender if your EMI gets bounced. This usually happens when you miss your EMI payment due to the lack of funds in your bank account
  • Mandate Rejection Service Charge - A mandate rejection service charge is levied if you reject any of the services rendered by your lender
  • CCOD Annual Maintenance Charge - If you have opted for a Cash Credit or Over Draft facility on your machinery loan, you might have to pay a CCOD annual maintenance charge. This charge is levied for the maintenance of your CC or OD account
  • Document Processing Charge - Your machinery loan application involves several stages of documentation, including the preparation of your loan agreement, indexing, etc. The lender charges a document processing charge for processing such documents
  • Outstation Collection Charge - If you have issued payment cheque(s) to a non-local branch, your lender may levy an outstation collection charge for the collection of your cheque(s)
  • Statement of Accounts - If you want a hard copy of your statement of accounts, i.e., the list of transactions made from your bank account during a given period, you may have to pay this charge
  • Loan Cancellation Charges - If you wish to cancel your machinery loan after its disbursal, loan cancellation charges would be applicable
  • Payment Instrument Swapping - If you wish to change or swap your payment mode with a different financial instrument, you might have to pay a payment instrument swapping charge
  • Duplicate Repayment Schedule - The first copy of your loan repayment or amortization schedule is free. However, if you want a duplicate copy of your loan repayment schedule, you will have to pay a fee for it
  • Duplicate NOC - A No Objection Certificate or NOC would be sent by your lender once you’ve repaid your entire loan amount. If you end up losing this NOC, you can apply for its duplicate copy by paying a duplicate NOC fee
  • Post-Dated Cheque Charges - If you’re issuing post-dated cheques or PDCs for EMI payments of your machinery loan, you will be charged a fee known as post-dated cheque charges

Foreclosure Charges

Below are the foreclosure charges applicable on Tata Capital Machinery Loans:

Type of Fee Applicable Charges

Part-Prepayment/ Prepayment/ Foreclosure Charges

Foreclosure charges on Term Loan Facility:

  • No Foreclosure and Part Payment is allowed in First 9 months from the date of disbursement. 6.5% charges if foreclosed/ part-prepaid within 9 months from the date of disbursement
  • 4.5% on the principal outstanding at the time of foreclosure


Part-Prepayment/ Prepayment/ Foreclosure charges on Top-up:

  • 2.25% on the principal outstanding at the time of foreclosure
  • Foreclosure charges shall be levied only if new rate is lower than existing rate.
     

Part-Prepayment/ Prepayment/ Foreclosure Charges in Dropline Facility:

  • 4.5% on the Dropped down limit amount
  • No foreclosure and Part- Payment is allowed in first 9 months. 6.5%charges if foreclosed/ part-prepaid within 9 months
  • Part-Prepayment/ Prepayment/ Foreclosure Charges - If you wish to make a pre-payment on your machinery loan, whether in part or full, the lender will levy a foreclosure charge. These charges are not applicable on loans taken with floating interest rates
  • Part-Prepayment/ Prepayment/Foreclosure Charges for Top-Up - If you have taken a top-up loan on your machinery loan and want to make a pre-payment on it, whether in part or full, the lender will levy a foreclosure charge for a top-up
  • Part-Prepayment/ Prepayment/Foreclosure Charges on CCOD - If you availed of a Cash Credit or Over Draft facility on your machinery loan and want to foreclose it, the lender will levy a foreclosure charge on CCOD
  • Part-Prepayment/ Prepayment/Foreclosure Letter Charge - If you want to foreclose your loan, you will have to ask for a foreclosure letter from your lender. The soft copy of this letter is usually free, but the lender may levy a foreclosure letter charge for providing a hard copy

How to Apply for a Tata Capital Machinery Loan?

 

Apply for a Tata Capital Machinery Loan Offline


Several lenders allow you to apply for a machinery loan in India through their websites. With Tata Capital, you can apply for a machinery and equipment loan in the following ways:

  • Branch

    Visit your nearest Tata Capital branch, and our representatives there will guide you through the entire loan application process

    Locate a Branch

Apply for a Tata Capital Machinery Loan Online


Several lenders allow you to apply for a machinery loan in India through their websites. With Tata Capital, you can apply for a machinery and equipment loan in the following ways:

  • Online

    Apply online through our website and get your loan approval instantly

    Apply Now

  • Virtual Assistant

    Take the help of our 24x7 virtual assistant to apply anytime and from anywhere

  • Phone Call

    Call us on our customer care number at 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply through your mobile phone. You can also request a call-back

    Request a call back
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Popular FAQs

Can we get a loan for used machinery?

Yes, you can get a loan for used machinery. Depending on the eligibility criteria set by the lender, you can apply for a loan to service your used machinery.

What is the tenure for machinery loan?

Your machinery loan tenure depends on how much time you need to repay the loan. Tenures are available on a short basis, such as 36 months as well as a long basis, such as ten years. 

How does a loan for machinery work?

A loan for machinery work is similar to other financial loans. This specific category caters to loans for servicing or procuring machinery and has eligibility criteria for the business to qualify for.

What kind of documentation is needed for a loan for machinery?

Similar to other loans, machinery loans have similar documentation requirements. They are:

  • Proof of identity
  • Proof of address
  • Colour photographs of the business owners
  • KYC documents for business
  • Proof of income
  • Facility sanction letter
  • Quotation price of the machine to be purchased

What is a loan for MSME machinery?

A loan for MSME machinery is granted to businesses willing to service or purchase new equipment. The main requirement to qualify for this loan is to come under the qualification as a micro, small or medium enterprise.

Why taking out a loan for machinery makes financial sense?

Since new equipment can cost a lot of money, you might need money to use for daily operations rather than buy new equipment. A loan for machinery can help you focus on buying equipment without having to sacrifice your daily operations, which is why it makes good financial sense.

Can we move a loan for machinery to a different bank?

As a machinery loan comes under a business loan, it can be moved to a different lender to avail of better interest rates. 

Why are interest rates on loans for machinery so cheap in comparison?

Because machinery loans offer collateral through the equipment, the interest rates are lower than other types of loans. This acts as a sense of security for the lender in case of payment defaults.

Can I obtain a loan from MSME to purchase machinery?

Yes, you can avail of a business loan as part of the MSME enterprises. You will only have to meet the requirements set by the institution to avail of a loan.

Do banks offer loans for new machinery purchases?

Yes, there are various lenders offering loans for new machinery purchases. However, they would all have varying eligibility criteria, so it’s important to go through them before choosing a lender.

Can you buy new machinery with a loan?

Yes, you can buy new machinery with a loan. Lenders offer machinery loans to enterprises willing to purchase new equipment for their operations. 

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Machinery Loans

If you’re into a manufacturing business, you may need to install the latest machinery or equipment in your factory.

You can apply for a machinery loan with us to fund the purchase of your business-related tools or equipment.

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MSMEs are the second-largest employer in India after the agriculture sector.

To help these MSMEs grow and flourish without being affected by financial hurdles, Tata Capital offers MSME loans or SME loans at competitive interest rates.

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If you’re unsure of the total loan amount that you may need for your business, you can avail of a business loan overdraft facility or an overdraft business loan.

With Tata Capital, you can get an OD loan for business of up to Rs. 90 lakhs at an affordable interest rate.

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Tata Capital’s small business loans are tailor-made loans to help micro and small businesses in India meet their urgent monetary requirements.

You can apply for a new small business loan online and get the funding from the comforts of your home or office.

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