A Machinery Loan is a type of secured financing provided to businesses for purchasing new or used machinery and equipment. This loan helps enhance production capacity and improve operational efficiency by enabling businesses to invest in essential machinery without upfront capital.
| Purpose | Purchase of machinery, equipment, and related assets |
|---|---|
| Loan Amount | ₹1 lakh to ₹10 crores (varies by lender and collateral) |
| Tenure | 1 to 7 years |
| Interest Rate | 9% to 18% p.a. (based on lender and credit profile) |
| Security | Machinery purchased or other collateral |
| Repayment | EMIs (Equated Monthly Installments) |
| Processing Time | Typically 7–15 days |