What Is Machinery Loan And How It Works?
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What Is Machinery Loan and How Does It Work?
Machinery and Equipment are the crucial parts of any business module. Without this, the production process is incomplete. But the new startups and the previous ones that want to update the machines required huge finance for this. Taking an appropriate machinery loan from Ziploan can fulfil that requirement.
These days, many financial institutions provide suitable business loans to the borrower after proper verification of all the details. India's government also implemented specific new schemes to offer MSME loan and promoted small business sectors to make the economy stronger.
Various business sectors, like packaging, manufacturing, and construction, heavily depend on machinery and equipment to complete their tasks on time. However, the purchase of new machinery can be a costly affair for a new or small business. We offer machinery loans to help SMEs purchase equipment that can give them an edge over competitors.
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What is a Machinery Loan?
Modern and updated machinery and equipment are an integral part of any business. The state-of-the-art pieces of machinery are required because of their flawless results and the quality of the products they deliver.
But buying machinery is an expensive investment which not every business can afford in one go. So, machinery loans can be availed to meet this requirement efficiently.
A machinery loan is a type of business loan which can be used by manufacturers and other business owners to acquire machinery for their business ventures.
It helps the business to increase its overall productivity without spending a higher amount on purchasing machinery. It helps the business owners to get hold of better equipment and increase their profit from higher sales and distribution.
This is a type of business loan in which the manufacturers and Business owners can take loans and buy the necessary machines to meet the business requirements. Setting up new and advanced machinery boost up the production process with little investment. Through the machinery loan, the business owner can get advanced machinery and an excellent chance to generate more profit by doing more sales and distributions.
We offer machinery loans ranging from Rs. 1 lakh to 5 lakh at attractive interest rates and flexible loan tenures. Our eligibility criteria are very easy to meet, and we require minimal documentation to process the application.
To avail of a loan for machinery, visit our website and check your business loan eligibility. If you meet our eligibility, fill out the loan application form with your information and the loan amount that you require. Next, upload the documents on our website. We will process your application, and if you meet the eligibility criteria, we will approve your application.
After signing the contract with us, the funds will be credited in your bank account. Once you get funds, you can use the funds to buy equipment or machinery as per your requirements.
The machinery loan amount varies from 1 lakh to 7.5 lakh rupees, and the interest rate is not so higher. As the loan tenure is more, the business owner will get ample time to clear the loan amount.
However, the financial institution has set specific terms and conditions for the loan. The term and conditions vary for different organizations. First, you have to meet the eligibility criteria, and then after particular document verification and processing of the application, the MSME loan amount gets sanctioned.
Previously it was a hectic process to fill the application form and running to the bank repeatedly. But now, you can fill the application form instantly from your home, and you do not have to run to the bank repeatedly. To fill the application for first visits the Institution's official website, fill the application form with your information but the required amount of MSME Business loan and submit it.
In the next step, you will be asked to upload the documents to the website. Then the processing of the application will start. One of the executives will review your application form, and if you have met the requirement, then your form will be approved immediately.
Finally, you have to sign a contract with the financial institution, and after that, the loan amount will be credited to you. After that, you can use the fund in buying the necessary machinery for your venture.
Here are three steps process to machinery loan apply online from ZipLoan:
1) Submit Application - Simply enter your personal, business, and financial info to receive an machinery loan offer.
2) Upload Documents - Upload digital copies of your documents in a single-step process for verification.
3) Get Sanctioned - Receive your loan approval and disbursal within 3 working days*.
What is a machinery loan?
A machinery loan helps you obtain financing to buy new equipment for your business. It helps you improve business productivity, without affecting normal operations.
How do machinery loans work?
Equipment financing refers to a loan used to purchase business-related equipment, such as a restaurant oven, a vehicle or a copier scanner.
Who needs equipment financing?
Any business owner who wants to buy new machinery or wants to upgrade one can avail machinery loan from Ziploan.
Why do we finance equipment?
Financing equipment helps maintain cash flow and greater certainty in budgeting by setting customized rent payments to match cash flow and even seasonal cash flows.
Solving Real problems
I have been running my business for over twelve years but have not been able to undertake expansion activities. I applied to Ziploan and they cleared my loan application in a very short span of time.
I approached Ziploan for an equipment finance loan. Their eligibility criterion was easy to fulfill because it required only 2 years ITR and 10 lacs of annual banking credit.
I always thought that loans and credit facilities were only available to large businesses with significant turnover. I never thought I would be eligible to qualify for a business loan too. Ziploan is boon for small enterprises like me.
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