🔑 Key Features of Equipment Financing Loans
| Feature | Description |
|---|---|
| Purpose | To purchase new or used equipment/machinery/tools |
| Loan Amount | Usually covers 80% to 100% of equipment cost |
| Loan Tenure | Typically ranges from 1 to 7 years, depending on asset lifespan |
| Interest Rate | Varies between 8% – 16% depending on lender, credit, and asset type |
| Collateral | The equipment being financed (self-secured loan) |
| Ownership | Borrower owns the asset after full repayment |
🏠Who Uses Equipment Financing?
Manufacturing companies (CNC machines, injection molding units)
Construction firms (excavators, cranes, cement mixers)
Farmers (tractors, harvesters)
Healthcare clinics (X-ray, MRI, dental chairs)
Logistics firms (commercial vehicles, GPS tracking systems)
âś… Benefits of Equipment Financing
Preserves cash flow (no large upfront payment)
Equipment can start generating revenue while you repay
Tax benefits through depreciation and interest deduction
Quick approval with minimal paperwork
Flexible repayment options (monthly, quarterly, etc.)
Apply Loan
đź“‹ Documents Typically Required
KYC documents (PAN, Aadhaar)
Business registration & GST
Last 6–12 months bank statements
Income tax returns (last 2 years)
Equipment quotation/invoice
Existing loan repayment track record (if any)
🧮 Want a Loan Calculator or Help Choosing a Lender?
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The type of equipment
Estimated cost
Your business profile
Loan duration preference