Machinery Loan Rates For Better Equipped Machinery

It is almost impossible to imagine manufacturing sectors without machines. Machine installation has already given rise to a substantial change in the way a company operates. It is a sign of how well your company can perform major tasks in processing and production of products. It very vital to have an equipped reliable machinery for the success of your business.There are different ranges of machineries that provide your company a competitive edge in the market. Most of the small and medium companies opt machinery loans for huge equipments either to replace a faulty, broken machine or upgrade to an advanced machinery. It is preferable to take loans  to purchase rather than leasing a machinery.What are the benefits you derive from taking machinery loan?First and foremost, upgrading machines aids to improve the operational efficiency of the company.For some of the financial institutions, indemnity of any asset to acquire loan is not required. This reduces the chances of putting your business at stake and declines the  risk for the company.There are financial institutions who grant “line of credit”- a unique facility allowing to borrow at intervals with different frequencies to a specified credit limits and can also be converted into term loans when necessary. This facility is suitable for businesses that carry recurring needs of cash for the purchase of equipments and other supplies.Tenure for repayment is provided upto 7 years, which in turn helps in attaining smooth cash flows.90% of the machinery value is provided as loan amount aiding MSME sector to be updated with latest equipments.Post verification, disbursal of funds are made quicker compared to other loans.Very few financial institutions offer flexible prepayment facility, which allows you to prepay the first three EMI’s of your loan, which can relieve you from the burden.Machinery loans meet simple eligibility criteria, maintain better transparency.Machinery loans benefit companies to invest in required equipment without having to spend a huge amount at once.CHARGES APPLICABLEInterest rate would be applicable to customers on the basis of many factors such as client’s profile, credit score and tenure of loan etc.Extra Stamp duty charges shall also be as applicableAdditional Documentation Charges (allotted by financial institutions)Many banks at their sole discretion reserve the right to alter the processing fee and rate of interest from time to time.Eligibility-Any individualPartnership firmCurrent holder of construction equipmentCompany exceeding two years of businessSole discretionApplicant utilizing equipments for self objectiveMine ownersContractorsTHE DOCUMENTS REQUIRED FOR PEOPLE RECEIVING SALARYProof of Identity:- Passport/Driving Licence/Voters ID/PAN Card(any one).Proof of Residence:- Leave and License Agreement/Utility Bill(not more than 3 months old)/Passport(any one).Latest 3 months Bank Statement(where salary/income is credited).Salary slips for last 3 months.2 Passport Size Photographs.IT returns of last three yearsLast six months Individual, Partners and Directors Saving bank- bank statements LIST OF DOCUMENTS FOR SELF-EMPLOYEDKYC Documents:- Proof of Identity;Address proof;DOB proof.Proof of Residence:- Leave and License Agreement/Utility Bill(not more than 3 months old)/Passport(any one).Income proof(audited financials for the last two years).Latest 6 months Bank statement.Office address proof.Proof of residence or office ownership.Proof of continuity of business.
Saurabh Jain
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Machinery Loan Rates For Better Equipped Machinery

Saurabh Jain
Blog
17th Aug, 2017
Machinery Loan Rates For Better Equipped Machinery

It is almost impossible to imagine manufacturing sectors without machines. Machine installation has already given rise to a substantial change in the way a company operates. It is a sign of how well your company can perform major tasks in processing and production of products. It very vital to have an equipped reliable machinery for the success of your business.

There are different ranges of machineries that provide your company a competitive edge in the market. Most of the small and medium companies opt machinery loans for huge equipments either to replace a faulty, broken machine or upgrade to an advanced machinery. It is preferable to take loans  to purchase rather than leasing a machinery.

What are the benefits you derive from taking machinery loan?

  • First and foremost, upgrading machines aids to improve the operational efficiency of the company.

  • For some of the financial institutions, indemnity of any asset to acquire loan is not required. This reduces the chances of putting your business at stake and declines the  risk for the company.

  • There are financial institutions who grant “line of credit”- a unique facility allowing to borrow at intervals with different frequencies to a specified credit limits and can also be converted into term loans when necessary. This facility is suitable for businesses that carry recurring needs of cash for the purchase of equipments and other supplies.

  • Tenure for repayment is provided upto 7 years, which in turn helps in attaining smooth cash flows.

  • 90% of the machinery value is provided as loan amount aiding MSME sector to be updated with latest equipments.

  • Post verification, disbursal of funds are made quicker compared to other loans.

  • Very few financial institutions offer flexible prepayment facility, which allows you to prepay the first three EMI’s of your loan, which can relieve you from the burden.

  • Machinery loans meet simple eligibility criteria, maintain better transparency.

  • Machinery loans benefit companies to invest in required equipment without having to spend a huge amount at once.

CHARGES APPLICABLE

  • Interest rate would be applicable to customers on the basis of many factors such as client’s profile, credit score and tenure of loan etc.

  • Extra Stamp duty charges shall also be as applicable

  • Additional Documentation Charges (allotted by financial institutions)

  • Many banks at their sole discretion reserve the right to alter the processing fee and rate of interest from time to time.

Eligibility-

  • Any individual

  • Partnership firm

  • Current holder of construction equipment

  • Company exceeding two years of business

  • Sole discretion

  • Applicant utilizing equipments for self objective

  • Mine owners

  • Contractors

THE DOCUMENTS REQUIRED FOR PEOPLE RECEIVING SALARY

  • Proof of Identity:- Passport/Driving Licence/Voters ID/PAN Card(any one).
  • Proof of Residence:- Leave and License Agreement/Utility Bill(not more than 3 months old)/Passport(any one).
  • Latest 3 months Bank Statement(where salary/income is credited).
  • Salary slips for last 3 months.
  • 2 Passport Size Photographs.
  • IT returns of last three years
  • Last six months Individual, Partners and Directors Saving bank- bank statements

LIST OF DOCUMENTS FOR SELF-EMPLOYED

  • KYC Documents:- Proof of Identity;Address proof;DOB proof.
  • Proof of Residence:- Leave and License Agreement/Utility Bill(not more than 3 months old)/Passport(any one).
  • Income proof(audited financials for the last two years).
  • Latest 6 months Bank statement.
  • Office address proof.
  • Proof of residence or office ownership.
  • Proof of continuity of business.

Saurabh
Blog Author

 

One of the Co-founders, Saurabh serves as an active advisor to several SaveDesk’s portfolio companies and also works closely with them to improve business performance, select key management personnel, ensuring statutory and financial oversight and compliance supported by various agreements.Prior to SaveDesk, Saurabh spent seven years with Standard Chartered Bank commercial banking team as an associate director, where he was responsible for client management,financial analysis, portfolio management and large ticket deal’s execution in South India. Saurabh holds an MBA in Marketing from the Institute of Technology Management, and graduated with Honors degree in Electrical and Electronics Engineering from RGPV, Madhya Pradesh

 

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