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HOW TO IMPROVE YOUR ELIGIBILITY WHILE GETTING MACHINERY LOAN?


In recent times, having an advanced machinery or equipment is must to grow your business to next level. Most of the businesses rely upon machinery loans for purchasing top-of-the line assets and meeting upgraded machinery requirements. If you want to expand your business and looking out to "Apply For Machinery Loan" here are some ways to increase your eligibility for qualifying an equipment loan which is mentioned below:

Robust plan on fund usage: Most of the lending institutions offer machinery loan to those applicants who have clear layout of using the borrowed funds. Therefore, create a robust plan on which equipment you will use the funds and why you chose that specific model over other machines. You can also mention the sales figure projected at installing that machinery or upgrading to advanced technology.

Maintain a good CIBIL score: A CIBIL score determines your repayment capacity and creditworthiness. It is advisable to check your credit score before applying for any kind of loan. A good credit score often lies in range of 700-900. Moreover, it also helps you to get more attractive interest rates on machinery loan. One can improve his/her credit history by making timely payments and spending within your limits. In addition to that, one should also avoid filing multiple loan application as it can adversely affect your score.

Keep an eye on your cash flow: One of the key factors to decide your loan approval is cash flow. Every lender review your business’s cash flow before sanctioning you a loan. A strong revenue generation and cash flow will increase your eligibility to get your loan approved. The lenders may also check your debt to income ratio to take an idea, if you have enough funds to repay the loan.

Well-prepared documentation: If you want your loan processing easy and fast, then choose the best lender and keep the necessary documentation ready. You can directly line up the document requirements by checking it on the lender’s website. Some the basic documents required when you "Apply For Machinery Loan Online" or offline are detailed plan, ID proof, business ownership papers, ITRs, audited balance sheet, income proof, latest six months bank statements etc.

Check your repayment capability: Before you apply for a loan, you must check your ability to repay the borrowed amount. You can also use loan EMI calculator to have an idea about the EMI and interest charged on it. Always consider your other monthly expenses and obligations as well as its impact on your cash flow.

Taking a machinery loan to upgrade your business can be a stress-free experience if you establish your credit score, an efficient plan for utilizing the funds and display profits and turnovers in your business. Hence, considering such useful tips before availing a machinery loan can improve your eligibility of borrowing. ShubhBank offers best machinery loan solutions to grow your revenues and business services. So, enjoy our loan scheme with flexible loan tenure, less paperwork and easy loan eligibility criteria. Get in touch with us.

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