India is home to millions of small businesses that are thriving every day. There are approximately 42.50 million Small and Medium Enterprises (SMEs) in India. These SMEs employ millions of people, make a significant contribution to the GDP, and form a huge share of the manufacturing sector.
Any business requires a lot of human resources, capital, and physical resources to grow and expand. If you are a small business owner, each asset addition can make a huge difference to the revenues and turnover.
SMEs that are production-based require new machinery or an up-gradation in their existing machines from time to time. These machines play a crucial role in generating revenue for the business. But raising a huge capital for the purchase of a machine is likely to be an evident setback in the process. However, banks and NBFCs provide loans to businesses for buying machines. To make these loans more convenient for the applicant, collateral-free machine loans are also available.
Why avail a Machine Loan?
A machine loan can help increase the scale at which the business is working. For a small business, it is very important to keep up with the customer demand and seize every chance to expand the customer base. In case your demand increases, cater to them efficiently, and stick to the commitments made, your business capacities need to expand too. To process the demand, you may need additional machines and extra equipment. Machine purchase is often a big investment. In such a case, a small business loan comes handy. A loan without collateral would be a blessing at this point!
A collateral-free machine loan is a loan that you can avail to buy machinery without keeping property or assets like vehicles, gold, shares, and stock as an assurance of payback. By availing of a collateral-free machine loan, you can buy the machines that give the required boost to your business. The machine you purchase can be new or used the capital can be used in any way you wish to until it is strictly business-related. The benefits of availing collateral-free machine loans include the cost getting eventually paid from the profits that will be generated by the new machine. Also, the stress on working capital will be reduced.
However, before availing of a machine loan the applicant must do a detailed study of their requirements. They must consider if they really require a new machine, or a secondhand machine will work fine for them. Also, they should plan out for space to install the machine beforehand. An increase in productivity post buying a new machine over their existing one also play a crucial loan deciding on purchasing a machine and getting a loan for the same.
EFL is a leading NBFC that has a hassle-free loan approval process. Over the years they have introduced various types of loans that are crafted to ease the loan process for our customers. EFL understands the financial challenges, SMEs have to face in their everyday operations. Through its products and services, EFL seeks to understand and solve these challenges so that small businesses never face any difficulties in their growth journey.
EFL’s collateral-free machine loan comes with many additional benefits such as:
- Maximum loan amount: Up to 75% of the equipment value or Rs. 3 Cr
- Longer loan term: Maximum duration of 5 year
- Interest rate: Flexible interest rates based on the customer’s profile
- Quick approval: Fast disbursal and transfer within 7 working days
- Online processing: Apply online from your home’s safety
Eligibility for approval of collateral-free machine loan requires:
- Vintage of Business: Details of the applicant’s business and their active years
- Turnovers Last year: A fiscal year’s total turnover records
- Average account balance: Bank statement to determine the average balance in the applicant’s account
General document requirements before applying for collateral-free machine loan at EFL:
3 years balance sheet and ITR
• 12 months bank statements of all banks
• GST returns for the current year
• KYC – Aadhar and PAN
• Residence and factory ownership proof
• Proforma Invoice/Quotation
Now that you are ready to apply for EFL’s collateral-free machine loan, download the EFL app on your Android or iOS smartphone to create an account. The process for application is simple, straightforward – fill in your business details, loan requirements and upload the required documents to move to the next step.
You can easily track your loan application status from your EFL app or EFL Customer Portal. If you fulfill all the criteria, EFL will credit the funds to your business account within a week of application. To know more, click here: