(Machinery and Equipment) Financing
You can use our (HP) Hire Purchase facility to finance your purchase of machinery & equipment. This is a funding arrangement for your machines and equipment purchase whereby we will pay the retailer directly. The Bank acquires & retains licit proprietorship of the financed asset, while you become the hirer. The proprietorship of the financed asset will be transmitted to you when the final instalment is fully paid. This is un-like a term loan wherever the debtor holds legal title to the goods from the outset.
At Commercial Banking, we provide / offers financing for a wide range of machinery & equipment. With our eye-catching rates of interest & flexible re-payment period, you can now acquire the machinery & equipment you need / want for your business whereas better managing your cash flow.
With eye-catching Machinery & Equipment Financing Package, you’ll be able to finance the purchase of your assets with ease. We offers competitive rate of interest and maximum financing of up-to 90% of the estimate or purchase price, either is lower, with a maximum loan tenure of 4 yrs.
Documents needed / required:
The credit officer may require extra documents during the credit evaluation.
How much loan can I avail of and how is the quantum decided?
The loan quantum is decided based on your requirement, credit assessment & re-payment capacity. However, it is limited to Rs. 25 crore.
What can be approved as security?
We accept an ample range of securities. The hue cycle includes land & real estate property, plant & machinery, equipment, Fixed Deposits, Deposit Certificates, (KVP), (NSC), securities issued by Central & State Governments, gold a& other cash equivalents, life insurance policies, and many others.
How long will it take to get the loan?
The loan will be processed with-in 10 working days provided everything is in order.
How do I re-pay my loan?
You have the flexibility of opting for Equated Instalment, Bullet Re-payment or Ballooning Re-payment (depending on the needs / requirements of your business). (PDCs), (ECS) mandate or Electronic Transfers are all accepted means of payment.
Can I pre-pay the loan?
Yes, you can pre-pay the business loan. Foreclosure charges at 2% shall be applicable on the principal outstanding.