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LoanDhara
Machinery & equipment finance

Machinery Loans for Manufacturers and MSMEs

Explore financing for new production machinery, equipment upgrades and capacity expansion. We help you understand the options and prepare a well-documented application — the lender assesses it and makes the credit decision.

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Manufacturing business owner beside a CNC machining centre and finished metal parts on his factory floor

Use cases

Suitable business use cases

  • Add production capacity

    Buy additional machines to take on larger orders or new product lines.

  • Upgrade ageing equipment

    Replace older machinery to improve output quality, uptime and efficiency.

  • Automate a process

    Invest in CNC, packaging, testing or material-handling equipment.

  • Meet a new contract

    Equip your unit for the specifications of a new customer or tender.

Key eligibility factors

Lenders weigh these and other factors according to their own credit policies.

  • Business vintage and operating track record
  • Turnover, profitability and cash flows reflected in financials and bank statements
  • Credit history of the business and its promoters
  • Existing borrowings and repayment conduct
  • Type, cost and supplier of the machinery, and its expected contribution to output
  • Your own contribution (margin) towards the machinery cost, as the lender may require
  • Security or collateral as per lender policy, or eligibility for CGTMSE cover where applicable

Commonly requested documents

Indicative only — the exact list depends on the lender, your constitution and the proposal.

Business & promoter KYC

  • PAN of the business entity and of promoters / partners / directors
  • Address and identity proof of promoters, as required by the lender
  • Udyam Registration certificate (where registered)
  • GST registration certificate (where applicable)
  • Constitution documents — partnership deed, LLP agreement or MoA/AoA

Financial records

  • Income tax returns, typically for the last 2–3 years
  • Audited or provisional financial statements (balance sheet, P&L)
  • Business bank statements, often for the last 6–12 months
  • GST returns for recent periods (where applicable)

Machinery details

  • Quotation or proforma invoice from the machinery supplier
  • Supplier details and machine specifications
  • Project report or capacity note for larger proposals, if requested

Existing borrowings

  • Sanction letters and repayment schedules for current loans
  • Loan account statements showing repayment track record

The process

How the financing process works

  1. 1

    Share your requirement

    Tell us about the machine, its cost and how it fits your production plans.

  2. 2

    Review your options

    We discuss the financing routes that may suit your profile and the machinery involved.

  3. 3

    Prepare the application

    We help you organise financials, KYC and the supplier quotation.

  4. 4

    Lender assessment

    The lender evaluates the proposal — this may include a site visit or technical review.

  5. 5

    Lender decision & disbursal

    If sanctioned, disbursal follows the lender's terms, often paid directly to the supplier.

Eligibility, approval, pricing, collateral requirements and disbursal depend on the lender and its applicable policies. LoanDhara does not lend and does not guarantee approval.

Machinery Loan: frequently asked questions

Lenders commonly take a charge (hypothecation) on the financed machinery. Some may also ask for additional collateral or guarantees, or consider CGTMSE cover for eligible micro and small enterprises. This depends on the lender's policy and your profile.

More questions? See all FAQs or talk to an expert.

Ready to explore your options?

Share your requirement and we’ll help you understand the next financing step.

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