Recent advancement in technology has magnified the scope of boosting a business’ productivity through the usage of upgraded equipment. This has led most businesses to invest in purchasing new machinery and equipment to be on par with the ongoing market trends.
For this, most businesses are relying on equipment financing loans to not strain their working capital. While several business-owners are taking full advantage of the equipment finance, there is a common myth among small-business owners that machinery or equipment loans are only for ventures that generate substantial revenue. Contrarily, equipment financing in India is available for both small and big-scale companies.
How to get easy equipment financing in India 2021?
In 2021, a large number of businesses are applying for equipment finance to harness the robust growth experienced by companies in different sectors. While equipment finance loans can be secured as well as unsecured in nature, most borrowers prefer to opt for collateral-free credits.
This effectively reduces the borrower’s risk in case of a default and also aids in deciding whether to lease or buy equipment for manufacturing businesses especially.
Thus, to avail of unsecured equipment financing in India, individuals must follow these easy steps –
- Search for the right financial institutions when looking for equipment financing since there are many lenders in the market. Only the right lender will be able to offer the best equipment loan interest rates, low processing fee, no hidden charges and hassle-free documentation.
- Once the lender is fixed, borrowers can apply for the loan instantly. Before applying, individuals must check their eligibility criteria and the documents required to avoid delay or loan rejection.
- The online business loan application is the most preferred medium to apply for equipment financing for its easy accessibility from anywhere, anytime.
- After a successful loan application, lenders or financial institutions verify the borrower’s eligibility and documents. If every factor is in order, the equipment financing loan will be approved and transferred to the borrower’s business account within some time.
What are the advantages of equipment financing?
Many industries benefit from equipment financing, and due to this, the demand for business loans to finance equipment purchase is on the rise.
- Equipment finance offered by NBFCs is mostly collateral-free in nature.
- Many financial institutions will provide pre-approved offers to ease out the loan application process for the borrower.
- Equipment financing offers flexible loan options to borrowers to repay at their convenience.
- These loans come with competitive interest rates depending on the borrower’s repaying history and credit score.
- With equipment finance, there is improved business productivity, faster turnaround time and greater ROI.
What are the different types of equipment financing schemes?
There are different types of equipment loans offered by various financial institutions to cater to specific business needs. The types of credits are as follows –
- Manufacturing equipment loan: This loan is offered to individuals looking to purchase equipment to manufacture goods.
- IT and office equipment loan: This loan is exclusively designed for businesses that need computers, laptops, servers, projectors and other IT equipment.
- Construction loan: This loan type is for construction business companies to purchase and invest in equipment for the same.
- Medical equipment loan: This type of loan is offered especially for the medical industry to provide equipment related funding to hospitals, laboratories, clinics, and likewise.
- Electronic and appliances: This loan will provide a loan amount for electronics and appliances for related businesses.
Many financial institutions like Bajaj Finserv extends pre-approved offers that help to simplify and accelerate loan approvals. These offers are available on a range of products, such as personal loans, business loans and more. You can check your pre-approved offer by submitting your name and phone number.
Through these equipment financing methods, new entrepreneurs and existing business owners can avail funds to promote and enhance their venture’s productivity.