There are types of commercial equipment loans that are offered by banks and NBFCs based on the requirements of the business owners and enterprises. Thus the types of commercial equipment loans are as follows:

• Manufacturing equipment loan

This loan is for those people who want to use this equipment for manufacturing goods in their business.

• IT and office equipment loan

This type of loan is exclusive for office businesses that needs IT equipment like computers, laptops, projectors, servers, and other office supplies and electronics, etc.

• Construction equipment loan

This type of loan is for business companies who are into constructing and the loan will provide equipment used in construction.

• Corporate Aviation equipment loan

This type of loan is for the aviation industry and the loan will provide equipment related funding that can be used at airports and in-flight.

• Medical equipment loans

This type of loan is for the medical industry and the loan will provide equipment related to hospital and clinical items.

• Electronic and appliances

This type of loan will provide a loan amount for electronics and appliances for a company.

Commercial Equipment loan can be availed to purchase types of machinery and equipment as mentioned below:

The term extension is based on the nature of the equipment and the life expectancy of the equipment. Only some lenders would be agreeable to extend the term of an equipment loan beyond the fixed expected useful life of the equipment itself.

• First-time User ( Buyers )
• Hirers of Construction, earthmoving, concrete and material handling equipment & plant hirers
• Small and medium contractors of Government and private agencies, viz., irrigation, public works department, national and state highways, etc.
• Small and medium quarry/mine owners/operators
• Small and medium industries requiring construction and material handling equipment for captive usages
• Contractors of various civic and municipal bodies

There are benefits for business owners who are availing for equipment loans, some of the benefits are mentioned below and they are:

• Some of the lenders offer up to 100% finance for new equipment, many at 90% or low
• Equipment Finance offered by banks and NBFCs are mostly collateral free or termed as unsecured loans
• Mostly the financial institutions will give pre-approval in equipment finance, so it will be a hassle-free procedure for the borrowers
• Flexible loan option is provided to customers to repay the amount as per their convenience and budget
• Interest rates offered are competitive and shall depend on the repayment history and creditworthiness of the borrower

Indian Loan Bazaar is a unique business loan provider because we understand the difficulties SMEs face in acquiring financing from traditional banking institutions. We also know how important it is to have a steady cash flow to stay one step ahead of the competition and make the most of every growth opportunity. This is why we have designed small business loans, specifically for the financing needs of SMEs and MSMEs in India.
The benefits include:

• Easy online application process – No need for multiple visits to the bank or standing in long queues
• Loan amount ranging from as little as ₹5 lakhs to as much as ₹50 lakhs, depending on the type of unsecured business loan you choose
• Minimal paperwork
• Customized credit underwriting criteria to meet the unique needs of different types of SMEs
• Flexible repayment with loan tenures ranging from 6 months to 3 years, depending on the loan product
• Low prepayment charges

• The individuals from corporate, partnerships, trust, proprietorship, public firms, private firms, contractors (from a construction site or mining activity)

• The minimum age should be 21 years when availing for a loan and maximum of 65 years at the time of maturity of the loan
• The company should be making a profit for the last 3 years and is stable (geographical basis) in the business for the last 2 years
• Income Tax Return (ITR) statements for the last 2 years

A person must be either:

• A self-employed individual, sole proprietorship firm, company, partnership firm, limited liability partnership, or private trust
• A captive customer, mine owner, or a contractor

They must have:

• Minimum of 2 years’ business experience
• Ownership of construction equipment
• Favorable track record with the existing bank over the past 12 months

• Any individual/partnership firm/company with more than one year of Business Stability
• Captive customers, Contractors, and Plant Hirers
• The applicant should be a local resident for at least 2 years in the approved location
• First-time owners can be funded at the discretion of the Bank

• Any individual/partnership firm/company with more than two years of business experience
• The existing owner of construction equipment
• Applicants using equipment for self-purpose, mine owners, and contractors