Technology and upgraded machinery play a pivotal role in making your business grow in leaps and bounds. The latest machinery can give you extra output and that automatically means the cost of labor decreases and the productivity and profit increases. With a machinery loan, you can invest in new machinery that can take your business to new heights. This loan can be availed for upgrading existing machinery too. The interest rate starts from 8.90 % with flexible repayments. If you are thinking of applying for a loan that would give a boost to your business through machinery this article can give you great insight.
The features of Machinery Loan
· It is simple and easy to apply for a machine loan. And the application can be completed online by submitting the necessary documents. The process of approval is usually short time and free of hassles.
· It is not mandatory to avail of such loans without offering any asset as a security.
· The EMI calculators of such loans are available on the websites of banks or other financial institutions and you can get a comprehensive idea about the EMIs.
· The disbursement period can take up to three days which is still pretty fast. Once you submit the required documents to check whether you are eligible for the loan is processed with 72 hours and disbursed.
· The process is really quick and hassle-free and incases if you don't match the eligibility criteria the response from the banks is quick.
· The repayment tenure of such loans is not very long and can typically range from 1 year to 3 years.
Eligibility criteria associated with machinery loan
You can apply for the machinery loan if you are into any kind of business or a trader and the business must be owned by you. Your business must have an existence of more than 3 years and preferably you must be in the same line of business. While applying for this loan you need to own at least one property. The income tax of your business must be filed for at least 1 year. The age limit as per the eligibility criteria for such loans is from 25 to 55 years.
Documents that need to be provided
The process of the loan approval is comparatively simple and the documentation required is minimal. The documents must have your identity proof like Voter card, Aadhar card, Passport, driving license, etc. The documents containing address proofs need to be submitted too like Adhaar card, pan card. You also need to submit documents related to your income proof and the bank statement of the last year. An existing facility sanction letter along with the quotation of the machinery is required for the bank to verify the amount. Also, your KYC and passport size photographs are required.
Application process can be both online and offline and you can select this as per your convenience.
Thoroughly check the schemes and compare it with other banks so that you get the best benefits. Consider all the pros and cons before applying.