Equipment Financing

Bank/NBFC	Interest rate (p.a.) (2021)	Type of Equipment Loan
Bajaj Finserv	19% onwards	All equipment
Bank of Baroda	Competitive interest rate	Construction and mining equipment
Tata Capital
HDFC bank	15% onwards	For commercial or construction equipment only
ICICI bank	At its sole discretion of bank	Construction loan
Kotak Mahindra bank	8.90% onwards	Farm equipment Construction equipment
Siemens Financial services		Tailored financial solutions to drive business models of the future.
Profectus Capital		Profectus Capital offers lending solutions for both the manufacturing and service sectors. For the manufacturing sector, they offer term loans for capital expenditure and working capital demand. They also offer shorter tenure viability assessed loans at quick turnarounds, typically for equipment funding. ROI starts from 14.50% p.a. onwards.
Tata Capital		A good Loan to Value of 70 to 80% of the equipment value – enjoy lower interest rates and easier accessibility to your equipment term loan.
HDB Financial services		HDB provide finance to a broad spectrum of customers, which include: First time User ( Buyers ) Hirers of Construction, earth moving, Concrete and material handling equipment & plant hirers Small and medium contractors of Government and private agencies, viz., irrigation, public works department, national and state highways, etc. Small and medium quarry/mine owners/operators Small and medium industries requiring construction and material handling equipment for captive usages Small and medium industries requiring construction and material handling equipment for captive usages Contractors of various civic and municipal bodies Tenure up to 48 months Financing for a whole range of construction equipment such as, Backhoe Loaders, Excavators, Mini Excavators , Tipper/ Dumpers, Transit Mixers, Self Loading Concrete Mixers , Cranes (Pick N Carry, Heavy Duty, Tower & Derrick ,Telescopic , Crawler), Wheel Loaders, Compactors, Road Rollers, Pavers, Dozers, Graders, Compressors, Drills, Hot Mix Plants, Concrete Pumps/ Boom Placers, Crushing Plants, RMC Plants, Rock Breakers, WMM Plants, DG Sets, Fork Lifts, Reach Stackers, Piling Rigs and others Up to 100% finance on asset cost Finance for Used equipment (Re-finance & Re-purchase) Top-up on existing loans Customized financing solutions to meet individual requirements Simple documentation and easy processing

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned fee & charges.

There are certain eligibility criteria set up by banks, some of the eligibility criteria are as follows:

• The individuals from corporate, partnerships, trust, proprietorship, public firms, private firms, contractors (from construction site or mining activity)
• The minimum age should be 21 years when availing for loan and maximum 65 years at time of maturity of loan
• The company should be making profit for last 3 years and is stable (geographical basis) in the business for last 2 years
• Income Tax Return (ITR) statements for last 2 years

The documents will be required when applying for equipment loan. It is use to verity your details and will help you to take the loans. Thus the following documents will be needed to submit when applying for equipment loan, they are as follows:

• KYC documents
• ID proofs: Aadhar card, PAN card, Passport, Voter’s ID
• Resident address proof
• Business address proof
• Business registration proof :- Partnership deed/ Certified copies of MOA / AOA
• Last 6 months’ bank statement
• Recent passport size photos of applicant or co- applicant
• Last two years of income tax returns and audited financials
• Details of suppliers and machineries name

There are benefits for business owners who are availing for equipment loans, some of the benefits are mentioned below and they are:

• Some of the lenders offer up to 100% finance for new equipment, many at 90% or low
• Equipment Finance offered by banks and NBFCs are mostly collateral free or termed as unsecured loans
• Mostly the financial institutions will give pre-approval in equipment finance, so it will be hassle-free procedure for the borrowers
• Flexible loan option are provided to customers to repay the amount as per their convenience and budget
• Interest rates offered are competitive and shall depend on the repayment history and creditworthiness of the borrower

There are types of equipment loans which are offered by banks and NBFCs based on the requirements of the business owners and enterprises. Thus the types of equipment loans are as follows:

1. Manufacturing equipment loan

This loan is for those people who want to use this equipment for manufacturing goods in their business.

2. IT and office equipment loan

This type of loan is exclusive for office business that need IT equipment like computers, laptops, projectors, servers and other office supplies and electronics etc.

3. Construction equipment loan

This type loan is for business companies who are into constructing and the loan will provide equipment used in construction.

4. Corporate Aviation equipment loan

This type of loan is for aviation industry and the loan will provide equipment related funding that can be used at airports and on-flight.

5. Medical equipment loans

This type of loan is for medical industry and the loan will provide equipment related to hospital and clinical stuff.

6. Electronic and appliances

This type of loan will provide a loan amount for electronic and appliances for a company.

Equipment loan can be availed in order to purchase types of machinery and equipment as mentioned below:

• Compactors
• Fork Lifts
• Crushing Plants
• Drills
• Road Rollers
• Compressors
• Dozers
• Tipper/Dumpers
• Hot Mix Plants
• Wheel Loaders
• Reach Stackers
• Cranes
• Backhoe Loaders
• Excavators
• RMC Plants
• Graders
• Concrete Pumps
• Transit Mixers
• Pavers
• Rock Breakers
• DG Sets, etc.

The tenure option for most of the banks will be 5 to 7 years, but mostly it will depend from which bank you are availing loan and the nature of your business.