Getting A Loan Against Machinery – An Overview

Loan against machinery can be a feasible option for an individual if he/she is willing to purchase new equipment for business or is planning for business expansion. Through this facility, individuals can avail of a substantial loan amount against their expensive machinery kept as collateral and use them for various business-related purposes.

Mortgage loan against machinery can be easily availed by individuals if he/she meets the necessary eligibility criteria and produce a specific set of documents to their preferred lending institution.

Applicants have to make sure that they fulfill the following eligibility criteria for loan against property process.

• The applicant’s age should be within 25 to 55 years.
• He or she should have full ownership of the set-up and equipment mortgaged against the property.

An individual should be a part of an enterprise that has a record of three years of business operation.

Other than that, the required lists of documents needed to apply for a loan against property is as follows – 

• The individual should provide their KYC documents that include their Aadhaar Card/PAN Card/Driving License.
• Loan seekers have to provide a record of the functioning years of their business.
• They have to provide bank statements for the last three years.
• Applicants have to produce their identity and address proof. 
• 2 passport-sized photos of the applicant.

Individuals can avail advances in the form of a loan against property even for promoting their small business endeavors. With benefits like high loan value and flexible tenor and affordable interest rates, this option stands perfect to fund all types of business ventures.

Additional Read: Loan Against Property Tax Benefits