India’s capital city, Delhi, is hailed as the commercial centre of the country. With thousands of businesses operating in the city, the need for capital also remains quite high among business owners. Thus, to meet these funding requirements, lenders offer loan against machinery in Delhi. Most of the people not aware of this type of loan. Loan against your machinery is a type of mortgage loan offered by financial institutions. By availing this loan, you can make maximum utilisation of your assets to fund other aspects of your business. With numerous benefits and attractive interest rates, this loan can make it easier to fulfil various plans and objectives regarding your business.
What Does A Loan Against Machinery Entail?
A loan against machinery can be used to fulfil various purposes like purchasing new equipment, repair work for existing gear or other capital expenditures. To avail this loan, you need to pledge collateral in the form of any of your existing high-value equipment or machinery. The loan will be provided according to the value of the equipment you have pledged.
Such an advance is an excellent way to meet multiple financing needs. For instance, leading financial institutions such as Bajaj Finserv offers Machinery Loans of up to Rs. 30 Lakh to meet any financial requirement.
Additionally, Bajaj Finserv gives exclusive pre-approved offers for existing customers that make availing loans faster and easier. These pre-approved offers are available on various financial products, including, home loans personal loans, business loans, etc.
Why Should You Apply For A Loan Against Your Machinery?
There are several benefits that you can enjoy if you avail a loan against plant machinery. For instance –
- Easy Availability
Since you are mortgaging your machinery against the loan, financial institutions sanction the funds easily.
- Substantial Short-Term Loan Amounts
When you apply for a loan against POS machinery or against any other machinery, you are utilising available assets to generate liquidity, vital in financial constraints.
- Flexible Repayment Tenures
This type of loan comes with a flexible tenure. Some institutions like Bajaj Finserv offers multiple tenure options to help all borrowers easily plan their finances according to their repayment capabilities. You must know how to determine the ideal tenure for your loan to avail maximum benefits.
- Attractive Interest Rates
The interest rate applicable on this loan is determined based on the current MCLR. Since the loan is against collateral, the financial institution providing the loan can liquidate the asset in the event of a default. That is why the interest rates are lower than unsecured loans. Borrowers must check all fees and charges involved prior to applying for a loan against property.
Thus with several benefits, availing a loan against machinery in Delhi is an easy way to acquire funds to invest in your business.
How to Apply for this Loan?
Applying for the loan is simple enough if you know the specific facts about the required eligibility criteria, value of machinery to be mortgaged, etc. Check with the list provided below to ensure that your application process goes without a hitch.
- Check Eligibility Criteria
You need to meet some simple eligibility criteria to qualify for this loan. Self-employed individuals need to be between the ages of 33 and 58 and a resident of India to avail the loan. He should also be working in any of the public or private companies of the country.
Self-employed individuals, on the other hand, can apply for a loan if they are a resident of India and between the ages of 25 to 70 years. They should also have a regular source of income.
- Knowing The Value Of The Machine You Will Mortgage
Knowing the value of the machine you will mortgage is crucial because your loan amount will depend on it. For instance, if you seek loan against card swipe machinery, you will receive the loan as a percentage of the value of the said machine.
Thus, make sure that you have an estimate of the machine beforehand to make sure there are no glitches in the process of applying for the loan.
- Know the Documents Required
Salaried and self-employed individuals seeking the loan will have to submit certain specific documents like ID proof, address proof, salary slip for salaried individuals, bank statements for self-employed individuals, etc. to the financial institution.
Therefore, it is crucial to know which documents are required by your lender to make sure you have them ready to submit while applying.
With the above knowledge, you can apply online to avail a loan against machinery in Delhi. Do not forget to calculate your monthly repayment amount in advance to ensure that your future finances are secure. Also, avoid common mistakes while applying for a loan against property to avoid rejections.