Quotation-led capex · vendor is in the story
Machinery & Equipment Loan
Plant and equipment on term EMI
The machine should be paid over the years it earns. Disbursal is often to the dealer. Working capital stays for raw material.
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Indicative ticket
₹5 Lakh – ₹2 Crore+
Tenure
Up to 7 years
Security
Asset hypothecation; additional security if required
Category
Term & expansion
Term & expansion
Finance plant, tools and equipment so capex does not drain MSME working capital.
Finance the machine that will earn over several years. Quotation, installation and EMI from post-install cash flow — not from working capital.
Overview
Machinery should be paid over the years it earns, not from the cash meant for raw material. A machinery loan (or hypothecation-based term loan) keeps working capital free for stock and wages.
Lenders look at the vendor, invoice, promoter contribution, installation, and whether the asset is standard or highly specialised. Imported machinery needs extra paperwork (IEC, proforma, duty).
We start from the quotation: what is being bought, why output or quality improves, and how EMI is serviced from the existing or expanded business.
What this facility offers
- New machinery widely accepted; used assets case by case
- Tenure often 3–7 years depending on asset life
- Vendor invoice / proforma based processing
- Can be paired with a WC limit so the unit does not starve cash after installation
- Suitable for CNC, packaging, food processing, printing, fabrication and similar MSME plant
Start from the proforma, not from an EMI app
Make, model, whether it is standard or specialised, new or used, imported or domestic. Installation, power load and insurance sit on the file. A WhatsApp quote without a vendor GSTIN is not a quotation.
Used machinery is a different grid
Age caps, valuation, extra margin. Possible — not a slogan. Imported lines add IEC, Bill of Entry and duty. We list that before you pay an advance you cannot recover.
Margin, installation, insurance, power
The lender’s disbursal is often to the dealer. Your contribution, GST on the invoice, erection, and a factory that can actually take the load sit on the file. A machine in a rented shed without a NOC is a delay, not a surprise.
Working capital for the extra raw material the new line will eat is a separate product. If that WC is missing, the term loan EMI starts before the cycle can feed it — the usual first-year stress we try to prevent on this page.
Unlike WC, this is not a 90-day turn. Unlike LAP, the primary security is usually the asset plus the enterprise — not the family house as the first idea. Unlike project finance, a single standard CNC does not need a 40-page DPR.
Do not fund from this page
- CC used as a piggy bank for plant
- Vehicle hypothecation
- Civil work without a machine
Make, model, used vs new, how output pays
- Vendor invoice and contribution
- How output pays EMI
- Premises and power
Plant that should earn over the EMI years
- Replacing old plant to cut rejection
- Adding capacity for a confirmed order
- Automation to reduce labour bottleneck
Units with a vendor quote, not a wish
- Factories, workshops, processors, and equipment-led service MSMEs
Capex tests — asset, premises, power
- MSME in manufacturing, processing or asset-heavy services
- Clear end-use and viable contribution
- Ability to install, insure and operate the asset
Proforma, vendor GSTIN, contribution
- Quotation or proforma invoice
- Udyam, KYC, financials, banking
- Factory / premises proof
- Collateral papers if the lender requires additional security
Quotation → lender → often dealer disbursal
Typical desk timeline: 3–5 weeks with vendor quotation
- 1
Login and share your brief
Create your MSME desk account or log in. Tell us city, Udyam band, turnover range and the purpose of funds in one clear sentence. Consent is recorded before any lender share.
- 2
Vendor quotation and contribution
Machine quote, brand, new vs used and your margin are captured. Tenure is matched to useful life — not a 7-year EMI on a 3-year payback asset.
- 3
Document checklist and vault upload
Promoter KYC, Udyam, GST, banking and purpose papers are listed product-wise. You upload once to the vault; we tell you what is missing before the file goes to credit.
- 4
Asset inspection if required
Lender may inspect the machine or vendor. End-use is checked against the quotation on the file.
- 5
Lender login and credit processing
The file moves to a partner bank, NBFC or HFC that matches your profile. Queries on GST vs banking, end-use or security are coordinated with you — we do not promise sanction from this website.
- 6
Sanction letter and agreement
If approved, you receive the lender’s sanction with rate, tenure, security and covenants in writing. Read processing, insurance and prepayment clauses before signing — they vary by institution.
- 7
Disbursal to vendor or as per sanction
Many lenders pay the vendor directly. Hypothecation on the machine is created; insurance may be assigned to the lender.
Ready to start?
Quick apply for Machinery & Equipment Loan without creating an account — or login if you want vault KYC and status tracking on your desk.
Machinery-loan questions
Can I buy second-hand machinery?+–
Some lenders allow used assets with valuation, age caps and extra margin. It is case-specific, not a blanket yes.
Civil-only or WC-only needs other pages
- MSME Business LoanTerm funding for expansion, stock, new units and long-term growth of registered MSMEs.
- Commercial Vehicle LoanFinance trucks, LCVs, pickups and business vehicles used in the MSME, not family cars as a pretext.
- Project & Expansion LoanStructured funding for a new unit, capacity expansion or a defined MSME project with a use-of-funds plan.
Figures are indicative. Not an offer. Sanction, rate and security rest with the bank, NBFC or HFC. Scheme names are not a website promise.
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