The unprecedented situation surfacing due to the onset of the COVID-19 pandemic has tremendously impacted companies worldwide. Indian SMEs are facing a severe money crunch, especially in the manufacturing sector. To combat the challenges faced by manufacturing companies, a machinery loan that focuses on quick disbursal and low-interest rates will help in getting the business back on track. Today, India’s best NBFC companies are offering dozens of customized options for taking a loan for your equipment.
As most of the global manufacturing hubs are closing their plants, the need for bringing good products into the market is exponentially increasing. Keeping up with the customers’ rising demands and the changing trends in the market becomes tougher when the production capacity of a manufacturing plant is restricted due to the unavailability of machines.
Another complication faced by business owners is the increasing maintenance cost of old machines. With time, a machine’s manufacturing capacity is challenged by its worn-out mechanism dangling on the last thread of life. Getting new machines will speed up the process of production while reducing the maintenance cost of the machines.
The process of applying for a loan becomes easier when someone guides you through it. Every SME with the goal of improving its current state of business can contact Indifi to get a quick disbursal of a loan through a completely transparent process. Cost-cutting has become so common for businesses that the high-interest rates on loans act as barriers between the new equipment and owner. The low-interest rate on loans at Indifi breaks this barrier to create the roads that take businesses to better profits.
Another major benefit of opting for a machinery loan through an NBFC like Indifi is collateral-free loan availability. If you’re looking to advance your offerings by upgrading your machinery, keep reading to learn more about the eligibility criteria and perks of getting a business loan from Indifi.
What are Machinery Loans?
Equipment is the life of every manufacturing company. As the industry trends and the demands of the consumer changes, it becomes the responsibility of the business owner to purchase new types of equipment to keep the business working smoothly. Ignoring these requirements will result in substantial long-term losses for the company. To ensure that the pressure on the shoulder of the manufacturing sector in India is minimum, government banks and NBFCs provide machinery loans to the manufacturing companies.
Working hand in hand with the banks, fintech companies like Indifi create a frictionless mechanism for business owners to apply for loans. While searching for platforms to apply for a business loan, reliability, authenticity, transparency, and quick disbursal, are the essential requirements of business owners. A company with years of experience and connection with many vendors can guarantee a fast processing of the application and customized loan plans to fit any business’s needs. In addition to all these features, Indifi sanctions the loans without any guarantor, and it does it with the minimum number of required documents.
Benefits of Availing Machinery Loans
Start-ups, and micro, small, and medium-scale companies have a hard time managing their expenses, as the maintenance cost of the existing machinery puts a period to their dream of upgrading their services. By availing a business loan through Indifi, you can get the following benefits at any stage of your production cycle.
- Collateral-free loan: Unsecured loan available
- Quick Disbursal: Application is approved within 3 to 5 days
- Multiple Vendors: For securing customized loans at the lowest interest rate
- Increase in Business Revenue: With the support of the latest types of equipment
- Increased customer satisfaction: By providing them with the required products
Eligibility Criteria for Machinery Loans
For availing a business or machinery loan from Indifi, the applicant needs to meet the following eligibility criterias, failing which, the application will not be processed further.
- Applicant’s Age: The applicant’s age should not be less than 21 years, and not more than 65 years on the date of applying.
- Company’s Age: The business entity should be a minimum of 2 years old.
- ITR: The company must have filed its Income Tax Returns in the previous year from the date of application. The company’s ITR must be at least INR 1.5 lakh per annum.
- Turnover: The annual turnover of the company must be more than INR 10 lakh.
- Other Requirements: The business premises, or the applicant’s house must be in his name or the name of his blood relative.
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Companies need to produce the required documents while applying. If any of the documents are missing, the processing time of the application will increase, causing further inconvenience to the applicant. Indifi offers equipment loans based on the authenticity and the details mentioned in the documents submitted with the application.
Here is a list of required documents.
- Identity card (Aadhar card or Voting ID)
- Latest passport size photographs of the applicant
- PAN card
- Company’s Financial Reports for the last 3 years from the date of application
- KYC documents of the company
- Details of the machines purchased in a business
- A copy of the ITR filings from the last two financial years
Getting a Machinery Loan from Indifi
From customized to priority sanction of loans, Indifi connects the dots to ensure a hassle-free process for getting loans. With the use of internal algorithms, the loan repaying capacity of the applicant is tested quickly so that the process of sanctioning the loan becomes easier and faster.
- Customized loans: By partnering with multiple vendors, Indifi presents a wide range of loan options to fit the needs of small and medium enterprises individually.
- Online Application: Right from the ‘information seeking’ process to the disbursal of loan, every process happens online. The applicant has to upload the required documents after filling the form for the process to take place smoothly.
- Transparency: The applicant can check the status of their application from the website at any time.
- Low-interest rates: With flexible repayment options and low-interest rate on the principal amount, Indifi creates an applicant-centric system for availing machinery loans.
- Minimal Documentation: By using an internal algorithm that verifies bureau score, credibility, and viability of the business and procures other required data from relevant sources, Indifi does most of the job of the applicant. This is why the process only demands the basic KYC and business details from the applicant.
By pairing technology with finance, Indifi has created a platform that allows business owners to avail of machinery loans from the convenience of their homes. As the process is entirely online and transparent, the applicant is informed of their application status at every stage.
Machinery Loan Frequently Asked Questions
- What is an equipment loan?
Equipment loan or machinery loan comes under the category of business loans for companies in the manufacturing sector. These companies can avail machinery loans for purchasing types of equipment that help in the smooth operations of their business or for upgrading their products.
- Who provides these equipment loans?
The source provider of the equipment loans is the NBFC companies, and government banks. You can avail the machinery loan for your business from Indifi in an unsecured format. This means that your loan will be sanctioned without the need for a guarantor or collateral.
- Is it necessary to take equipment loans?
In the world of the manufacturing business, it is essential to manufacture your products using the latest technology to get better profits and clients. An equipment loan will help in upgrading your services for your clients and customers, while inspiring a jump in your revenue numbers.
- Am I eligible to take an equipment loan?
Any start-up, small scale company, or medium scale company in the manufacturing sector is generally eligible for taking an equipment loan. Other factors of eligibility are described below.
- The age of the applicant must be between 21 years to 65 years on the date of application.
- The business entity under which the application is processed must be at least 2 years old.
- The company must have filed its Income Tax Returns (ITR) in the previous year from the date of application.
- The ITR of the company should be more than INR 1.5 lakh per annum.
- The business or house premises must be in the name of the applicant, or the name of an applicant’s blood relative.
- The annual turnover of the business must be more than INR 10 lakh.
- What are the perks of taking equipment loans from Indifi?
Indifi is one of the topmost Indian NBFCs (Non-Banking Financial Company) in the financial-technology sector. We provide quick machinery loans for micro, small, and medium scale companies, with benefits as listed below.
- Collateral free loans
- Guarantor not required for availing any loan.
- Transparent processing of the loan application
- Disbursement of equipment loan within 3-4 working days of application
- Comfortable repayment terms
- Low-interest rates without any pledge
- Online facility for application
- Which documents are required for availing a machinery loan from Indifi?
The basic documents required for availing a machinery loan from Indifi are listed below.
- The latest passport size photograph
- Identity card, like the voting card of the applicant
- Company’s KYC documents
- PAN card of the applicant
- Financial Report of the company for the last 3 years
- A copy of the ITR filed by the company in the last 2 years
- Details about the machines bought in the business
- Can I track my loan application status?
Yes. Indifi features a transparent operating process to keep the customer informed regarding the status of their application at all steps. The customer can track the details of their application from the website of Indifi. In case of any query regarding the process, you can contact the customer service team at email@example.com.
- Will I get better profits after taking a machinery loan?
Availing a machinery loan will give you the freedom to experiment with the latest types of equipment in the industry. You can enjoy the profits generated by the products created through the new machines without any worry. Only when your products are in trend with the new demand of the customers or clients will you generate better revenue. Indifi provides machinery loans at the lowest interest rates, with flexible repayment options.
- Do I need a good CIBIL score for availing a machinery loan?
No. You don’t necessarily require a good CIBIL score for availing a business or machinery loan from Indifi. We use a range of proprietary algorithms for checking the credibility of a company. Through multiple checking parameters, we analyse the repayment capacity of the borrower in the fastest way possible.
- Indifi considers which parameters before sanctioning a machinery loan?
Indifi considers the financial reports of the previous years, ITRs, business viability of the company, vintage, bureau score, income, and location of the business, along with many other factors before sanctioning a machinery loan.
- How long does it take to get the machinery loan sanctioned from Indifi?
After a rigorous and thorough checking process at Indifi, we sanction your machinery loans within 3 to 5 working days of receiving your application (if you have correctly submitted the required documents). The amount will be disbursed into your account within one day after it has been sanctioned by our teams.
- Are the machinery loans offered by Indifi secured?
To ease up the process of availing loans for our customers, Indifi provides unsecured business and machinery loans with multiple features. Without demanding for a guarantor or collateral, the loan is sanctioned based on Indifi’s special algorithms and diverse benchmarks.
- How much finance can I avail of through Indifi’s machinery loan?
Indifi gives you the chance to borrow 80% of your equipment’s cost. But, before applying for the machinery loan, you must check the eligibility conditions. The application will only be processed further if the applicant and the company are eligible for the loan.
- Do I need a guarantor for availing the business loan?
No. Indifi allows you to avail an unsecured loan without the need for a guarantor. We have in-house algorithms to check the business viability of your company, and the loan repayment capacity of the applicant.
- What are the stages of availing a machinery loan through Indifi?
The process for availing a machinery loan through Indifi is listed below.
- Checking the eligibility of the application
- Procedures for the sanctioning of loan