HOW TO AVAIL A MACHINERY LOAN FROM SHUBHBANK

Nowadays it is necessary to upgrade and improve the efficiency of manufacturing unit of business with various types of machinery and equipment in the ever-changing world of client’s product requirement. Machinery loans are availed by any business owner to improve the productivity and efficiency of their business. ShubhBank provides you with best suited machinery loan to purchase the new and automated machinery. The most common type of equipment that are availed by equipment loan are earth moving equipment, CNC machines, industrial machines, medical machines, precision tool cutting equipment etc. We provide you the complete guide of how to "Avail a Machinery Loan" from ShubhBank.

CONDITIONS FOR EQUIPMENT LOAN:

• You have to show the minimum 2 years of ITR and profitability in the Balance Sheet.
• No bad remarks on company of any court case.
• CIBIL criteria to be fitted.
• The amount borrowed is inclusive of 80 % of the total invoice value which is inclusive of GST.

BENEFITS OF MACHINERY LOAN:

• Quickest loan sanctioning
• Depreciation/Tax benefits
• Funding up to 80% of invoice value
• Flexible repayment option

REQUIREMENTS OF MACHINERY LOAN

Two Years of Business Existence:  We usually fund the project backed by renowned investors to assure the business continuity and the performance of the business.

Good CIBIL Score:  Credit Information Bureau India Limited is a rating agency which, maintains and rate your credit risk, which we use to assess your credit history and determine your eligibility basis and track record of the past repayments on loan. An outstanding credit history is the prerequisite to determine your loan eligibility.

Robust Business Plan: We need to have a robust business plan to meet the terms of funding. Your business plan should be well designed in a few paragraphs giving the crux of the business. Most of the times the quantum is funded directly to the seller than company account, unless it’s a reimbursement of machinery already purchased.

Company Profile: We seek company’s profile to have insight about the company’s vision and products line. Educational qualification and experience of business are sought to make sure about the person behind the business.

Cash Flows: We check your financial recordings confirming the cash flow before "Equipment Loan" is sanctioned. The financial reporting is what we consider while funding business loan requirement.

Loans are offered by various lending institution depending upon the cost of funding. The lending rate of interest offered by banks would vary between 9.5%-12.5%, which is usually backed by some security as collateral along with CIBIL, Credit Rating and Equipment Type. The rate of interest for NBFCs starts from 12.75% -15% & is offered without security or you can say it as collateral free. Machines bought are itself used as collateral by lending institution till the time of complete repayment. The processing fee for all machinery loans typically ranges between 0.5%-1.5%. ShubhBank provides access to multiple lenders and bring insight to attractive interest rates, flexible repayment options, products offered and structures best suited for all business requirement.