EQUIPMENT & PLANT FINANCE

Machinery Loan 2026 Interest Rates, Eligibility & CLCSS Subsidy

Finance new or used machinery from ₹1 lakh to ₹10 crore with term loans, equipment finance, and government-backed CLCSS subsidies, compare machinery loan offers from 30+ banks on PaisaOne.

Loan Quantum

₹1 Lakh to ₹10 Crore+

LTV Ratio

70% to 90% Invoice Value

CLCSS Subsidy

15% Capital Subsidy

Tenure

36 to 84 Months

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Key Features & Benefits of Machinery Loans

High Loan-to-Value (LTV)

Banks finance up to 70%–90% of the machinery invoice value with minimal margin money.

Asset Hypothecation

The equipment itself acts as primary collateral, reducing additional property mortgage requirements.

CLCSS 15% Upfront Subsidy

MSMEs in 51 specified sub-sectors receive up to ₹15 lakh direct government capital subsidy.

New & Used Machinery

Flexible term loans available for both brand new machinery and certified second-hand equipment.

Trusted Partners

Top Lenders Offering Machinery Loan 2026s

SBI SME Machinery

SIDBI Equipment

Tata Equipment

BOB MSME

Bajaj Machinery

HDFC Equipment

SBI SME Machinery

SIDBI Equipment

Tata Equipment

BOB MSME

Bajaj Machinery

HDFC Equipment

Machinery Loan 2026 – Key Features

Loan Amount

₹1 Lakh to ₹10 Crore+

Interest Rate

9.00% to 16.00% p.a.

Repayment Tenure

36 to 84 Months

Security

Hypothecation of Machinery

Before applying

Eligibility Criteria

Make sure your business meets these basic requirements.

Sole proprietorship, partnership, LLP, or private limited company
Minimum 1-2 years of operational history (startups covered under CLCSS/CGTMSE)
Annual turnover of ₹10 lakh to ₹25 lakh minimum
CIBIL score of 700+ for PSBs (650+ for NBFCs)
Proforma invoice from authorized machinery manufacturer or certified dealer

Keep ready

Documents Required

Keep these documents handy to speed up your application.

Proforma Invoice / Quotation from Machinery Supplier
Machinery Technical Specifications & Asset Life Sheet
Aadhaar & PAN Card (KYC identification)
Udyam Registration Certificate (Mandatory for CLCSS subsidy)
Audited Financials & ITR (Last 2-3 years)
Bank Account Statements (Last 12 months)

How It Works?

Get Quotation

Obtain official proforma invoice and technical specs from machinery dealer.

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Submit Application

Apply online or at bank branch with Udyam Certificate and supplier invoice.

Technical Appraisal

Bank verifies machinery valuation, asset life, and productive capacity.

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Supplier Payment

Loan amount is disbursed directly to machinery vendor after margin contribution.

Finance Your Plant & Machinery with Subsidised Rates

Up to 90% Funding

CLCSS Subsidy Support

Flexible 7-Year Tenures

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Frequently Asked Questions

Clear answers to common questions about machinery loan 2026

Most banks require a minimum annual turnover of ₹10 lakh–₹25 lakh, verified through GST returns and bank statements. For higher machinery loan amounts, lenders typically require documented turnover at least 1.5–2x the annual loan repayment obligation to confirm adequate debt-servicing capacity.

Yes. Apply online at udyamimitra.in for CLCSS-subsidy-linked machinery loans, or through SBI, HDFC Bank, ICICI Bank, Bajaj Finserv, and Tata Capital's business banking portals for general equipment finance. Some NBFCs offer fully digital machinery loan processing with disbursals within 7–10 working days.

Key documents include Aadhaar, PAN, Udyam Registration Certificate, business registration proof, GST returns (12 months), audited financials (2–3 years), ITR, bank statements (12 months), and the machinery supplier's proforma invoice. CLCSS applicants need an additional CLCSS application form routed through an empanelled nodal bank.

Private banks and NBFCs can sanction machinery loans in 7–15 working days for borrowers with complete documentation and strong financials. PSBs processing CGTMSE-backed or CLCSS-linked loans typically take 20–45 working days due to technical machinery appraisal, bank visits, and subsidy routing requirements.

Yes. Select banks and NBFCs provide loans for used machinery, typically capped at machinery that is not more than 5–7 years old and in good working condition. A certified valuation report is required, and lenders generally apply a higher margin (20%–40%) compared to new machinery purchases.

The lender must provide written reasons for rejection. Common reasons include insufficient turnover, low CIBIL score, or machinery type outside eligible categories. You may address the gaps and reapply, approach a different lender, or raise a grievance at samadhan.msme.gov.in if the rejection appears unreasonable.