How Does Getting a Machine Loan Can Help You Grow Your Business?

Business | Tips & Advice 24 November 2021

For better sales and steady growth, as a businessperson, you need to have the right machinery. Irrespective of your industry, the machines you use have to be at par so that you can warrant maximum production and profit. With the help of the latest technologies, your machinery increases the production many folds and helps reduce the cost of labour/workforce and improve the overall efficiency.

How Does Getting a Machine Loan Can Help You Grow Your Business?

Worn-down machinery or the necessity of a new one may often require capital financing. In such a scenario, if you need capital loan finance, there are many options that can help you in dealing with insufficient funds.

Machinery loans can be taken in the form of a small business loan as well. To further boost the booming economy, the government has introduced several capital financing schemes that can greatly help small to medium businessmen. Let us take a look at the highlighting features of small business loans:

  1. 'Pocket-Friendly Rates
    Facing financial issues can be detrimental to your business. In such a time, getting a capital loan at affordable prices can be a blessing.
  2. Freedom to Choose
    Most banks offer capital loan finance to small businesses allowing a lot of flexibility in loan repayments, tenures, pre-payments etc.
  3. Unsecured Capital Loans
    There are banks that allow certain small loan amounts to start-ups and small businesses without collateral.
  4. Ease of Online Banking
    For a businessman, time is money. And you save a lot of it with online transactions. Online banking also makes money transactions simpler, quicker and convenient.

Now let us take a look at the different working capital loan options that are available:

  1. Credit Guarantee Fund Government Business Loan Scheme

    Credit Guarantee Fund Government Business Loan Scheme, CGTMSE, is probably the most suitable capital loan scheme for MSMEs. While offering collateral-free loans, you can avail of the loan through an authorised rural bank or commercial bank. The loan amount can go up to INR 10 lakhs, and above depending on the eligibility.

  2. MUDRA Loan

    Created to offer capital loan finance opportunities to non-corporate, non-farm micro/ small enterprises, MUDRA loans can be taken from almost all kinds of banks in the private and the public sector including rural banks, corporate banks and small finance banks. To apply for the bank, you can visit the official MUDR website.

    Here are the eligibility criteria you need to look out for. The applicant: can be a non-corporate small businessman/ proprietor including:

    • Shopkeeper
    • Small manufacturing unit
    • Food-service unit
    • Repair shop
    • Machine operator
    • Food processors and others
  3. Credit Linked Capital Subsidy Scheme

    Another credit scheme by the government aimed at technological upgrades of small businesses. This can be an ideal option for your machinery loan, as it gets you a 15% subsidiary on your eligible machinery investment.

    For this capital loan finance, you need to apply as a

    • Single proprietorship business
    • Co-operative or public/ private limited company
    • Partnership firm
  4. Business Loans by Piramal Capital Housing and Finance

    Getting a business loan has been made simpler and easier by PCHF. Speedy disbursals, minimal documentation along with an efficient and proactive 24X7 customer care, ensure that your working capital loan needs are fulfilled at the earliest.

    With Piramal Capital Housing and Finance you can apply for your machinery loans up to INR 25 lakhs. An interest rate of 12.5% makes the loan an affordable option.

    Let us take a look at the eligibility criteria. The applicant:

    • Must be from 21 to 70 years of age
    • Can be either salaried or self-employed

Conclusion:

When you work with machines, you need to be prepared for their natural wear and tear. Working capital loan in the form of a machinery loan can not only help in upgrading and repairing machines, but it can greatly boost the smooth running of your business. So, do not let your production get hindered due to a delayed upgrade of your machine. With the multiple options explained above, make an informed decision about the right capital loan and carve new ways for your company’s success.

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