Quick answer
Machinery Loan: Buy new or used machinery and equipment to grow production capacity. Collateral: the machinery purchased. Typical tenure: 3–7 years. Best for: buying equipment. BankHelpline compares lenders for you free of charge in Mumbai, across India and for NRIs.
By BankHelpline Editorial Team · Reviewed by Sheetal Pawar, Director · Updated
What is a machinery loan?
A machinery loan helps manufacturers and service businesses purchase plant, machinery or equipment. The machinery itself usually acts as security for the loan.
Machinery Loan in Mumbai, Thane & Navi Mumbai
Manufacturers in Mumbai, Thane, Bhiwandi and Navi Mumbai industrial areas can compare machinery and equipment finance from banks and NBFCs. BankHelpline is based in Mumbai and helps borrowers across Mumbai city and suburbs, Thane and Navi Mumbai, the rest of India, and NRIs worldwide – by phone, WhatsApp and email.
Key features of Machinery Loan
- Finance for new and used machinery
- Machinery is usually the primary security
- Repayment matched to the asset's earning life
- Available to MSMEs and large businesses
Who is eligible for a machinery loan?
- Operating business with stable revenue
- Quotation / proforma invoice for the machinery
- Healthy credit history
Criteria differ by lender. Our advisor checks your profile against multiple lenders for free.
Documents required for Machinery Loan
- PAN card
- Aadhaar card or other address proof
- Recent passport-size photograph
- Last 2–3 years ITR with computation of income
- Audited balance sheet and P&L (if applicable)
- Last 6–12 months business bank statements
- GST registration and recent GST returns
- Business registration proof (Udyam, partnership deed, MoA/AoA, etc.)
- Machinery quotation or proforma invoice
Machinery Loan at a glance
| Secured | Yes |
|---|---|
| Collateral | The machinery purchased |
| Typical tenure | 3–7 years |
| Best for | Buying equipment |
How to apply for a machinery loan through BankHelpline
- 1Fill the free enquiry formShare your name, mobile number, city and the product you need. No documents are needed at this step.
- 2Talk to your advisorA BankHelpline advisor calls you, understands your requirement and checks your eligibility with multiple banks and NBFCs.
- 3Submit documents onceShare KYC, income and business or property documents. We help you prepare a complete file.
- 4Get sanction and disbursalThe lender verifies, sanctions and disburses the loan. We follow up until the money reaches your account.
Frequently asked questions
Often yes – the machinery itself is the primary security, and eligible micro and small enterprises may get credit guarantee cover under CGTMSE.
Yes, many lenders finance used machinery after a valuation, usually with a lower loan-to-value ratio than new machinery.
Key facts from official sources
CGTMSE provides credit guarantee cover to lenders for eligible collateral-free loans to micro and small enterprises. — Source: CGTMSE
Udyam registration for micro, small and medium enterprises is free and done online on the government Udyam portal. — Source: Udyam Registration (Govt. of India)
Lenders must give borrowers a Key Fact Statement (KFS) with the all-inclusive cost of a retail or MSME loan before the agreement is signed. — Source: Reserve Bank of India
Written by BankHelpline Editorial Team · Reviewed by Sheetal Pawar, Director · Last updated . Content is researched from official sources such as the Reserve Bank of India (RBI), credit bureaus and lender websites, and reviewed periodically. Rates and charges change often – always confirm the latest terms with the lender.