Machinery Loan Myths and Facts

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Myths Facts about Machinery Loan
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Machinery Loan or Machinery Finance is a
financial product that is used by MSMEs to
purchase new machinery or upgrade old machinery
for their production or business expansion needs.
There exists many a myth regarding machinery
loans that makes people believe that it is
something that is difficult to get. Well, it
might have been in the past but with rapid
technological advancement and growth of FinTech
NBFCs (Non-Banking Finance Companies) providing
machinery finance, the scenario is quite
different now! Machinery Loans are now Faster,
Easier and much more Affordable!
So its time to bust those myths and look at the
top 5 machinery loan facts! Here goes
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Myth Fact - 1
Myth
Fact
Best source for Machinery Loan is Traditional
Banking Institutes
NBFCs are right solution which provide Quick
Machinery loan to MSMEs

• Conventional banks dont want to loan out smaller
  amounts of machinery loans to MSMEs
• Huge amount of paperwork to be done makes the
  entire process extremely complex and delayed
• Interest rates at banks are quite high

• NBFCs willingly provide machinery loans to MSMEs
  sectors
• Minimum documentation as basic KYC and bank
  statement makes process quick and hassle free
• Much lower interest rates are provided

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Myth Fact - 2
Myth
Fact
Machinery Loans need a lot of collaterals
Machinery loan can be availed without any
collateral
Collateral
That myth is only true for conventional banks who
are still plagued with outdated protocols when it
comes to loaning money to MSMEs.
Machinery loans can be obtained easily without
mortgaging your additional assets or business
equipment.
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Myth Fact - 3
Myth
Fact
Machinery loan is Quick and Hassel Free
Machinery Loans take long time for approval and
disbursal
In the case of traditional machinery finance
source, MSMEs have to go through the cumbersome
paperwork process long waiting time for
verification and approval.
In modern FinTech machinery financers,
disbursement happens in just 2 working days in
fast and hassel free manner just what is required
for MSMEs to get their innovative idea up and
running.
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Myth Fact - 4
Myth
Fact
Machinery loan go up to 90 of the machinery value
Low percentage of the machinery value
90

Machinery loan comes with low percentage of the
machinery value
Machinery loan amounts even go up to 90 of the
machinery value so that entrepreneurs can start
off and expand their business quickly and
efficiently.
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Myth Fact - 5
Myth
Fact
No pre-payment charges for Machinery Loan
There are pre-payment charges for loan repayment
That is true for traditional lending sources.
With FinTech players of the market, there are no
pre-payment charges on loan pre-payment at all!
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To know more about Machinery Loan
Visit www.tabcapital.co.in