Equipment Loans
Equipment loans are considered ideal for customers who own business whether SME or large enterprises requiring long life equipment needs, who prefer the ownership and the associated tax benefits of owning equipment’s through loans. There is also the option of equipment leasing which includes operating leases, finance leases, hire purchase arrangements and other customized products. However, when you own an equipment through a loan the ownership benefits are varied.
Types of Equipment Loans
- Construction Equipment:
This type of loans are taken by construction companies and businesses for equipment that is necessary for construction. - Manufacturing Equipment:
This type of loan is seeked by people with people who require to use equipment’s for manufacturing goods. - Corporate Aviation:
People who are in the corporate aviation industry will seek loan for the same mainly to deal with airport and on-flight equipment. - Automobiles and Allied Industries:
Any businessmen who has requirements in their automobile and related industries including manufacturing of parts, assembling or related manufacturing can avail this type of equipment loan. - IT and Office Equipment:
This is exclusive of the equipment necessary for any business that obviously has to function with an office and hence needs IT equipment’s such as computers, servers, projectors, other office supplies and electronics. - Electronics & Appliances:
This is to take a loan amount for electronic and appliance for a company to function reasonably. - Health Care:
For any business related to healthcare, loans can be taken to buy equipment’s and goods required for the business to run smoothly.
Equipment Loans Interest Rates Details
Bank | Interest rate | Type of Loan |
HDFC bank | 15% onwards | Commercial or construction equipment |
Kalupur bank | 9.50% onwards | Manufacturing and service sector |
Kotak Mahindra bank | 8.90% onwards | Farm and Constructionequipment |
Documents Required to Apply
The following are the document needed to submit for Equipment Loan application process:
- PAN card, Aadhar card and Voter’s ID
- Resident Address Proof
- Business Located Address proof
- Business registration Proof
- Last Past months’ Bank statement
- Passport size photos of applicant
- Two years of income tax returns & Audited financials
- Suppliers and Machineries name in Detail