If you are running a business, you most likely use at least one form of machinery, regardless of your company's industry. This machinery is likely to be most important to your company's effective functioning. Most machines are costly, and it might be too expensive for you to buy all the machines with the number of other business costs you have to take care of.
Fortunately, there is an option to seek a loan for machinery purchase to support your funding needs! Deciding whether a loan for machinery purchase is right for your company would depend on many factors. However, machine financing may be a good choice if you depend on expensive machines to run your business.
How Important is it for MSMEs to seek a Loan for Machinery Purchase?
- Micro, Small and Medium Enterprises (MSMEs) account for most businesses worldwide and are important for job creation and global economic development.
- MSMEs are regarded as the backbone of the Indian economy.
- Getting a loan quickly is difficult for most of MSMEs. It is the second most mentioned difficulty faced by MSMEs to grow their businesses in emerging markets and developing countries.
Features of Loan for Machinery Purchase:
- A loan for machinery purchase is the best option for MSMEs.
- It is available at a competitive rate of interest.
- At Kinara Capital, no collateral is needed.
- It is easy to apply, and MSMEs don't need many documents.
What we do at Kinara Capital
- At Kinara Capital, we believe in transforming lives, livelihoods, and local economies by providing fast and flexible loans.
- We do not need any collateral to give loans to small business owners.
- We offer a term loan to purchase new or used machinery or other assets for your business expansion.
- The loan is given for the period between 12-60 months.
- The rate of interest is starting at 21% per annum, on a reducing rate basis
- Small businesses can apply for a loan amount from Rs. 1 lakh to 30 lakhs for working capital, asset purchase, and other business expansion needs.
Get a Collateral-free Machine Loan in 24-hours
Benefits of Loan for Machinery Purchase:
Raising the Potential Revenues of Your Business
If you obtain a loan for machinery purchase, it could increase the overall efficiency of your business. For instance, if you run a trading or manufacturing business, getting additional machinery could help you complete and deliver your orders faster. You might also be able to take on more clients
Increase in Productivity and Quality
A machinery loan helps you upgrade to newer technology to produce more units in less time. Higher productivity will lead to higher profits. You will satisfy your client's demands quickly. Naturally, as you upgrade to newer equipment, you will produce high-quality goods and increase your clients' confidence. So, it's a win-win situation.
Funds Get Available Quickly
Approval and disbursal of machinery loan is not at all time-consuming. This means you can have quick access to the funds for getting the machinery. If you buy machinery at the right time, you can complete your orders quickly. At Kinara, we need minimal documents. You can apply on our website and get the loan quickly.
How to Get the Loan for Machinery Purchase at Kinara Capital?
Step 1: Eligibility Check
This ensures the basic loan eligibility of whether the customer passes the basic criteria for availing the loan.
Step 2: KYC Verification - Personal and Business
This step consists of verifying the applicant's & co-applicant's information such as education, PAN, Aadhaar, address proof, business KYC (registration type), bank statement and Udyam registration.
Step 3: Income verification
This step consists of uploading various business documents; there are multiple options if certain documents are unavailable. Below mentioned are the most requested documents:
- - GST verification
- - Bank account with 12 months statement (applicant, co-applicant and business)
- - Machinery details (only for the manufacturing sector)
- - Property (no documents required, only information)
- - Number of employees
Step 4: Loan Application and Approval
This step is mostly about fulfilling loan formalities such as signatures on documents, nominee and loan sanction details. Currently, business owners can check their eligibility on their own by filling in their details on the website in just 1 minute. After which, a loan officer will contact them if they have passed the eligibility check. The loan officer will then follow up and process the rest of the application.
Kinara Capital is now able to disburse a loan within 24-hours. Kinara Capital's loan process is dependent on 150+ parameters. Our unique data-driven process allows us to give flexible loans to a wide variety of MSMEs.
- Machinery Financing
- Asset Purchase Loan