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A machinery loan is a financing solution designed to help businesses acquire, upgrade, or repair essential equipment that supports their production activities. For manufacturers of all sizes, having access to the right machinery is key to improving efficiency, maintaining productivity, and staying competitive.
Periodic upgrades or the purchase of new machinery can significantly enhance a business’s profitability and operational edge. At SMFG India Credit, we support small business owners and MSMES by providing tailored working capital loans and machinery loans to make sure that they receive the right kind of financial support to grow their businesses.
Keep reading to learn more about the features of our machinery finance solutions, the eligibility criteria, and the application process you can expect.
SMFG India Credit supports small business owners and MSMES by offering tailored machinery finance solutions that help them scale their operations. Whether you're seeking a loan for machinery purchase or looking to upgrade existing equipment, our collateral-free business loans are designed to meet your machinery requirements conveniently. Some of the benefits of our machinery loans include:
Unsecured Loans
We offer unsecured business loans, requiring no collateral, to finance the purchase or upgrade of business equipment and machinery.
Substantial Loan Amount
You can access a machinery loan of up to INR 1 crore* to purchase, replace, or upgrade essential equipment.

Repayment Tenure
We offer flexible repayment terms that range from 12 to 60 months*, so that you can comfortably align EMIs with your cash flow.
Machinery Loan Interest Rate
You can benefit from competitive interest rates that help you keep the cost of capital on the lower side.
Quick Disbursement
If you meet the eligibility criteria and submit the necessary documents, the machinery loan can be disbursed within as little as 72 hours*.
Foreclosure Terms
Under certain conditions, you have the option to foreclose your loans with any additional fees or charges*.
There are certain eligibility criteria that you need to meet if you want to take out a loan for machinery purchase. Some of these include:
*Please note that these are the basic eligibility criteria. The final eligibility will depend on several factors, including SMFG India Credit’s policy at the time of loan application.
Remember to check your eligibility through our business loan eligibility calculator. We have kept the paperwork to a minimum and disburse the equipment finance within a few days of signing the contract.
Here are some of the basic business loan documents that are required. Please note that, depending on their availability and the nature of your business, additional documents may be asked for.
Understanding the machinery loan interest rates, as well as the associated fees and charges, is an important part of your application. It can help you get a better understanding of the overall loan cost and make informed borrowing decisions. Here’s a breakdown of the key charges:
|
Fee Type |
Applicable Charges |
|
Machinery Loan Interest Rate |
15.50% - 24.25% per annum |
|
Loan Amount |
Up to INR 1 crore* |
|
Loan Tenure |
Up to 60 months* |
|
Processing Fee |
Up to 2.75% of the total loan amount + GST |
|
Late Payment Charges (Applicable for Payment Default) |
2% per month (24% per annum) on overdue amount calculated on day to day basis payable from the relevant due date till date of actual payment. |
|
Repayment Instrument dishonor Charges per presentation |
INR 500 |
|
Loan Cancellation Charges (Loan Cancelled Before First EMI) |
INR 1,000 + GST |
Applying for a machinery loan with SMFG India Credit is a simple and easy process. Just follow these step-by-step guidelines:
Begin your online machinery loan application here by selecting the "Business Loan/SME Loan" option. Enter the required information, upload the necessary documents, and specify the desired loan amount and repayment tenure. Ensure all documents are current and accurate to avoid processing delays.
Once your application is submitted, you’ll receive a quick update on whether it is eligible for further processing. If eligible, a reference number will be generated – keep it safe for future reference. An SMFG India Credit representative may contact you if any further information or clarification is needed.
Your machinery loan application will go through a detailed verification process, including document checks and address verification. Upon successful verification, you’ll receive a tailored loan offer outlining critical details, such as the approved amount and interest rate. After final approval, the amount will be disbursed directly to your account.
If you have more questions on how to get your loan for machinery purchase in India sanctioned, simply call the SMFG India Credit customer service team on our toll-free number 1800 103 6001 or email us at [email protected]. Alternatively, you can also visit your nearest SMFG India Credit branch to speak to a representative.
Upgrading or expanding your business operations shouldn’t be delayed due to a shortage of funds. A machinery loan from SMFG India Credit can provide the financial support you need to invest in quality equipment, improve productivity, and stay competitive in your industry.
With flexible repayment options, minimal documentation, and quick disbursals, our machinery finance solutions are designed to support small businesses and MSMEs across India. Apply online today!
With the rustic flair of desi music and subtly infused humour, this video tells a story of a small retailer who was able to grow his small business with a loan. Watch now and enjoy!
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
Yes, in certain cases, loans may be granted for used machinery. It’s best to check with your lender for specific details and any conditions.
At SMFG India Credit, the maximum tenure for a machinery loan is 60 months*.
A loan for machinery purchase is a type of business loan that provides funds to buy, upgrade, or repair machinery. The loan amount is repaid in EMIs over a fixed tenure, along with the applicable interest.
Typically, documents include identity proof, address proof, business existence proof, bank statements, income tax returns (ITRs), and CA-audited financials. Additional documents may be requested based on your profile and the lender’s policy.
An MSME machinery loan is a financial product specifically designed to help micro, small, and medium enterprises purchase or upgrade their production equipment. These are often collateral-free and tailored to the business’s needs.
Investing in machinery through a loan helps preserve working capital, supports business expansion, and can increase productivity and profitability without a large upfront cost.
Yes, most financial institutions, including SMFG India Credit, offer loans for purchasing new machinery.
Yes. Machinery loans are well-suited for buying new equipment, enabling businesses to enhance operations without straining existing finances.
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Insurance disclaimer SMICC is registered with the Insurance Regulatory and Development Authority of India (IRDAI) as a Corporate Agent. IRDAI Registration No.: [CA0098] CIN No. U65191TN1994PLC079235. The insurance policy is a contract between the customer and the insurance company, and policy is underwritten by insurance companies. SMICC acts only as the distributor and is not responsible for any risk, policy issuance, claim settlement/repudiation etc. Insurance is the subject matter of solicitation. Purchase of insurance is voluntary and subject to insurer underwriting and policy terms and conditions. Customers are advised to read the policy terms and conditions, benefits, exclusions, claim settlement carefully before purchase. Kindly note that “Insurance Products” are not mandatory for the purpose of the application and disbursement of loan. It shall be the sole discretion of the customer, by providing explicit consent, to avail such insurance along with the Loan.
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