Machinery Loan
Finance new or used industrial machinery — with or without collateral/security — for MSMEs across Gujarat.
What is a Machinery Loan?
A Machinery Loan is a targeted credit facility that finances the acquisition of industrial plant, equipment, and machinery — new or used (second-hand). Available with or without collateral: CGTMSE-backed options allow machinery loans without security or property mortgage, making it accessible for first-generation entrepreneurs. The machinery itself serves as primary hypothecation. Ideal for manufacturers in Ahmedabad, Rajkot, Surat, and across Gujarat looking to upgrade technology, add production capacity, or replace aging equipment.
Who is Eligible?
- Existing manufacturing MSMEs and mid-size enterprises
- Enterprises with at least 2 years of operations and positive net worth
- Purchase from OEM, authorized dealers, or verified used / pre-owned machinery markets
- Collateral-free eligibility under CGTMSE for loans up to ₹5 Crore
- Minimum turnover as per bank norms (typically ₹50 L+)
Key Benefits
- Available without collateral or security under CGTMSE guarantee cover
- Finance for both new and used / pre-owned industrial machinery
- Finance up to 100% of machinery cost (select schemes)
- Flexible tenure of 3–7 years
- Linked with CLCSS for additional 15% capital subsidy on eligible machinery
- Quick processing — often 10–15 working days
Documents Required
Step-by-Step Process
Need Assessment
We identify the machinery requirement and match it to the best loan product.
Documentation
We prepare the loan file including financial analysis and machinery quotations.
Bank Submission
Application is submitted to the shortlisted bank or NBFC.
Inspection & Appraisal
Lender inspects the unit and appraises the machinery value.
Disbursal
Loan is disbursed directly to the machinery supplier.
Frequently Asked Questions
Can I get a machinery loan without security or collateral?
Yes. Machinery loans up to ₹5 Crore are available without collateral or additional security under the CGTMSE guarantee scheme — the machinery itself is hypothecated to the lender, so you don't need to pledge property or other assets.
Is an MSME loan for machinery different from a regular machinery loan?
An MSME loan for machinery is a machinery loan extended to a Udyam-registered MSME, which unlocks priority-sector interest rates and CGTMSE collateral-free cover. We structure the same machinery loan as an MSME loan wherever your enterprise qualifies, to get you the best rate.
Can I get a loan for used or second-hand machinery?
Yes. Loans are available for used / pre-owned machinery purchases, not just new equipment — subject to the lender's valuation and remaining useful life assessment of the machine. We help identify lenders who actively finance used machinery purchases.
What is an unsecured machinery loan and who qualifies?
An unsecured (collateral-free) machinery loan is financed purely against the machinery being purchased, with no property or personal guarantee required beyond CGTMSE cover. Existing MSMEs with 2+ years of operations and healthy turnover typically qualify.
Can I take a loan against machinery I already own?
Yes — term loans against existing, unencumbered machinery are available for working capital or expansion needs, based on the current appraised value of the equipment.
Interested in a Machinery Loan?
Tell us your requirement and we will assess your eligibility in 24 hours — for free.
Apply Now +91 97146 31847