What is a Machine Loan?

A Machine Loan is taken to purchase new or imported machinery to improve productivity, automation, or capacity.

Ideal For

• Manufacturing units
• Job work industries
• Packaging, printing, textile units
• Engineering & fabrication businesses

Key Benefits

• Loan up to 75–85% of machine value
• Faster approval than project loans
• Repayment up to 5–7 years
• Improves production efficiency
  
  

New vs Used Machinery

• New machinery: Higher funding & easier approval
• Used machinery: Limited funding & stricter checks

Documents Required

• Quotation / Proforma invoice
• Financial statements
• Bank statements
• GST returns
• KYC of promoters

Common Issues in Machine Loan

• Wrong machine selection
• No capacity utilization plan
• Ignoring AMC & maintenance cost

CA’s Advisory Tip

Align machine loan with subsidy eligibility to reduce effective cost.