Equipment Financing Loans

LoanPao offers equipment financing loans to help businesses in India 2025 acquire essential machinery and equipment. Whether you’re a small business, MSME, or large enterprise, our network of over 500 RBI-compliant lenders provides tailored solutions with competitive rates and flexible repayment terms.

What is Equipment Financing?

Equipment financing loans are designed to fund the purchase of machinery, tools, or technology required for business operations. These loans can cover equipment like manufacturing machines, medical devices, construction tools, or IT hardware, enabling businesses to enhance productivity without straining cash flow.

Key Features of Equipment Financing Loans

  • Loan Amount: Up to ₹50 crore, depending on business needs and lender policies.
  • Interest Rates: Competitive rates starting from 8% p.a. (subject to credit profile and collateral).
  • Tenure: Flexible repayment periods from 1 to 7 years.
  • Collateral: Secured loans may require the equipment itself or other assets as collateral; unsecured options available for smaller amounts.
  • Quick Disbursal: Funds disbursed within 3-7 days after approval.
  • Tax Benefits: Interest paid on equipment loans may be tax-deductible under Section 36(1)(iii) of the Income Tax Act.

Eligibility Criteria

Ensure your business meets these requirements to qualify for an equipment financing loan:

Criteria Requirement
Business Type Proprietorship, Partnership, Pvt. Ltd., LLP, or MSME
Business Vintage Minimum 2 years of operation
Annual Turnover ₹50 lakh or above (varies by lender)
Credit Score CIBIL score of 650+ for business or promoter
Collateral Equipment or other assets for loans above ₹25 lakh
Documents GST returns, ITR, bank statements, business registration

Documents Required

Prepare these documents for a smooth loan application process:

  • Identity Proof: Aadhaar, PAN, or Passport of business owner/partners.
  • Business Proof: GST registration, Shop Act License, or Company Registration.
  • Financial Documents: Last 2 years’ ITR, 6 months’ bank statements, audited balance sheets.
  • Equipment Details: Quotation or invoice for the equipment to be financed.
  • Collateral Documents (if applicable): Property papers, FD certificates, or other asset documents.

Benefits of Equipment Financing with LoanPao

Boost Productivity

Acquire modern equipment to enhance operational efficiency.

Flexible Terms

Choose repayment schedules that suit your cash flow.

Trusted Lenders

Access 500+ RBI-compliant banks and NBFCs.

How to Apply

  1. Visit our application page or call +91-971-769-5334.
  2. Submit business and financial documents for assessment.
  3. Get loan offers from our lender network within 48 hours.
  4. Choose the best offer and complete documentation.
  5. Receive funds in 3-7 days after approval.

Frequently Asked Questions

Loans can finance manufacturing machinery, medical equipment, construction tools, IT hardware, and more.

Collateral is typically required for loans above ₹25 lakh, but unsecured options may be available for smaller amounts.

Yes, most lenders allow prepayment with minimal or no penalties after a lock-in period. Check terms with your lender.

Contact us at +91-971-769-5334 or apply online via our application form.