Finance for Plant, Machinery, and Equipment (New/Used)

Equipment loans fund the purchase of new or used machinery, vehicles, and production equipment through asset‑backed term credit with EMIs structured to cash flows. Sanctions are based on project viability, machine valuation, LTV, and borrower profile, with primary charge on the financed asset. [11][3]

MSME machinery loans generally fall under Priority Sector Lending (PSL) and can be collateral‑free via CGTMSE for eligible borrowers, reducing security gaps; higher tickets may use hybrid security with partial collateral and guarantee cover. Vendor tie‑ups and OEM quotes often speed appraisal and disbursement. [13][18][15]

Tenures typically range from 12 to 96 months for NBFC/bank equipment finance, with moratorium options during installation; used machines may have shorter tenures and lower LTV based on age and residual value. [5][3][11]