Equipment is the necessity and lifeblood of any business for a seamless operational output. To ensure that your business has the apt equipment that is up to date to meet the demand, one needs to maintain a timely upgrade as and when necessary for the business's growth. However, with numerous overheads to sustain your business, at times you may face a financial crunch to draw up the requisite funds to procure new equipment. To offer you relief for this hiccup there are many banks and financial institutions that provide Equipment Loans. An equipment loan is ideal for those businesses that fall under the category of SME or Large Enterprises irrespective of the industry. Banks such as HDFC Bank offer up to 100% financing options depending on the borrower's credentials with swift processing loan applications at competitive interest rates and tenures. This article will walk you through the benefits of Equipment Loan.
Advantage of Equipment Loan
Instant Access to Funds: when it comes to equipment, you don't want any obstacles during your procurement journey to affect your business's productivity. Since time is money for business, you require funds to be disbursed swiftly and in a seamless manner right to your bank account. With an Equipment Loan specific to your requirement, the funds are disbursed to your bank account at times in 24 hours. The Equipment Loan ensures that you have instant access to liquidity for your equipment purchase. It is one of the essential benefits of Equipment Loan.
High Value Amounts in One Go: an Equipment Loan ensures you can obtain large amounts for your equipment in one loan application. For instance, if your equipment amount ranges between Rs. 10 lacs and Rs. 30 lacs, you can set up your loan facility depending on the bank and financial institution. An added benefits of equipment finance is that you can use this amount to either purchase new equipment or upgrade your existing setup. With the flexibility to purchase your requisite business equipment and added convenience of repayment tenures and interest rates, an Equipment Loan is your go-to for anything related to new or existing equipment enhancement to meet your present business objectives magnify your business objectives and scope.
Collateral on Flexible Terms: One of the advantages of Equipment Loan is the collateral required for the loan. As the end-user is specific to only procurement of equipment, most banks consider the equipment purchased in question as a security against the loan. Depending on the bank, the Equipment Loan could be a secured or unsecured loan. In case the loan amount is of a higher value, then the lender may request additional collateral or guarantee from the business's promoter as security.
Utilisation of Funds: Another benefits of Equipment Loan is the flexibility to utilise the funds from an Equipment Loan as and when needed. For instance, the borrower can apply for an Equipment Loan for a value of Rs. 30 lacs, but utilisation can be Rs. 10 lacs if they require to upgrade their current equipment. Most banks offer this flexibility and calculate interest only on the utilised amount for your repayment through EMI. Additionally, repayment of the principal can be completed at the closure of the tenure.
Pre-approved Offer: if you are an existing customer with the bank and hold a clear credit record and score, you can avail an Equipment Loan in less than 24 hours due to the pre-approved facility. You don't require to complete the entire loan process formality, and the bank will need only the mandated loan requirements. The reduction in the documentation and EMI calculation and interest and principal amount can be considered under an Equipment finance tax benefit.
With various benefits offered through an Equipment Loan, now is your time to enhance and expand your business to provide the best productive output through easy financing solutions. Apply for an Equipment Loan or Business Growht Loan through HDFC Bank and make the most of the benefits. To know more, click here.
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*Terms and conditions apply. Business Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.