Business Loan · Instant Approval

Machinery Loan

Eyeing new equipment to lift your business but unsure about the finances? An equipment machinery loan gives you the fiscal backing to buy it — without squeezing your cash flow.

Interest from 7.50% p.a.

Secured & Unsecured Options

Tenure of 12 to 60 Months

High Loan-to-Value Ratio

Last Updated: 30-06-2026

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Quick Guide

What is a Machinery Loan?

An equipment machinery loan is business financing for acquiring or upgrading new machines and repairing old ones. Small, medium and large enterprises, startups and self-employed professionals can all qualify — and productivity improves without a rupee leaving your working capital.

The financing runs secured or unsecured: pledge the purchased machinery (or another asset) and the loan turns secured. Beyond flexible repayment, machinery loans in India bring tax benefits, minimal documentation and a high loan-to-value ratio — a convenient route to machine upgrades and growth.

Machinery Loan EMI Calculator

Loan Details

Loan Amount₹500000

₹1,000₹10,00,00,000

Interest Rate12%

1%50%

Tenure24months

6 months180 months

Results

Monthly EMI₹23537

Total Payable₹564882

Interest Amount₹6488211.5%

Principal Interest

Features & Benefits of Machinery Loan

Efficiency in Business

Advanced machinery speeds up production and sharpens operational efficiency.

Enhanced Productivity

Modern equipment turns out premium-quality products faster, lifting your standing in the market.

Competitive Advantage

New equipment cuts downtime, raises output and locks in higher production quality.

New Equipment or Machinery Purchase

Buy new machines to meet growing demand and raise standards — without dipping into working capital.

Existing Equipment Repairing or Replacing

Fixing or swapping out faulty machines keeps processes uninterrupted and productivity steady.

Reduced Repair Expenditure

Investing in new machinery ends the cycle of repair bills and surprise breakdowns.

Flexible Loan Repayment

Easy EMIs protect your cash flow, and some lenders tailor repayment terms to the business.

— Eligibility —

Machinery Loan Eligibility Criteria

Meeting these simple requirements is all it takes:

Business Vintage

The business must be operational for a minimum of 2 to 3 years

Business Type

Some loans are available for MSMEs or specific sectors only; for instance, agriculture and manufacturing

Minimum Turnover

Steady yearly turnover and supporting proof are compulsory — the loan amount depends on it

Credit Score

750 or above gives businesses the best chances of approval

Documentation

Business licenses, financial records, tax returns and similar documents are crucial

Documents Required for Machinery Loan

— Documents —

Keep these basics ready for a fast online approval:

Identity Proof

Aadhaar Card

PAN Card

Address Proof

Rent agreements

utility bills

voter ID (for individual applicants)

Business Registration Proof

Business license

GST registration

Financial Documents

Audited account statements for the last two years

bank account statements for the past six months

invoices

details of the machinery cost from the respective supplier

Quick & Easy Process

How to Apply for a Machinery Loan?

Apply online in just a few simple steps

Step 1

Pin down exactly what machinery your business needs.

Step 2

Compare lenders on rates, terms and conditions to find your best fit.

Step 3

Confirm you meet the eligibility bar, including a credit score of 750 or above.

Step 4

Run the EMI calculator, adjusting tenure and amount until the numbers suit your finances.

Step 5

Submit the application together with all required documents.

Step 6

Wait for the approval to come through.

Loan Categories

Rates, tenures and charges vary between lenders and states — compare through Janmudra without touching your credit score.

Bank/NBFC	Interest Rate (Per Annum)	Loan Amount	Processing Charges
HDFC Bank	7.50% - 14.93%	As per requirement	1% - 1.5%
Kotak Mahindra Bank	Up to 24%	As per requirement	Up to 3%
Bajaj Finserv	9.75% - 30%	Up to Rs. 50 Lakh	3.54%
Axis Bank	9% - 14.50%	As per requirement	0.30% or Rs. 10,000 (whichever is lower)

Machinery Loan Interest Rate & Applicable Charges

The charges that apply across different parts of the loan are tabled below:

Particulars	Charges
Purpose	Acquire new or pre-owned machinery and upgrade existing equipment, boosting productivity and efficiency
Eligibility	New startups, small and medium companies, large enterprises, proprietors, and self-employed individuals
Interest Rate	Depends on the lender, loan type, business profile and credit history — generally lower when the loan is secured
Processing Fee	Typically 1% to 1.5% of the loan amount
Collateral Requirement	The machinery itself or another pledged asset for secured loans; unsecured loans available at higher rates and stiffer terms
Repayment Tenure	Typically 12 to 60 months, varying by lender
Interest Rate Type	Fixed: same rate throughout the term · Floating: rate moves with market fluctuations
Business Vintage	Most providers require a minimum of 2 to 3 years of business history