All You Need To Know About Machinery Loan Interest Rate
If you are a farmer who works with agricultural equipment, you need to read this article till the end. As a farmer, you understand the importance of machinery, yet you are forced to cut down on the cost of machines because you have limited capital. What if there was a facility that could help you borrow funds to either buy, lease, or even repair and upgrade your machines? Yes, you read that right! That is exactly what is machinery loan.
This loan helps you increase productivity and improve the efficiency of your business without hurting your working capital. Machinery loan in India is a boon for farmers as it takes a huge burden off their shoulders. It is the greatest aid that new and old farmers can expect to get financial help from. Don't believe us? Consider the case of Ramesh. Ramesh is a farmer who grows soybeans. He receives tons of orders for soybeans, however, the orders are always delayed because he has no machine for threshing. He has employed manual labor and has had to pay the employees by the hour. Not only was this slow but he was incurring a lot of losses since most of the money was going toward paying her employees. When his son suggested buying a fully automatic threshing machine Ramesh barely had any funds to buy it. Borrowing a machinery loan in such situations can be of great help.
Machinery Loan Interest Rate
The interest rate on machinery loan is the percentage of interest that has to be paid with EMI each month during the entire repayment tenure. LTF offers the most affordable interest rate for machinery loans starting from just 10.75%. Here are some factors that affect machinery
loan interest rate:
• Business stability: This loan is procured mostly by farmers and therefore while offering you a suitable rate of interest, banks check the stability of your business. If your business has been stable for years, you are more likely to be offered a lower rate of interest.
• Credit rating: Your credit score plays a vital role when banks decide the interest rate for your machinery loan. It goes without saying that a good credit score will give you a low machinery loan interest rate.
• Criminal background: Any sort of criminal background, whether major or minor, will result in the immediate rejection of the machinery loan. Banks always check this criterion so make sure that you stay away from trouble.
Machinery Loan Calculator
A machinery loan calculator is a tool to help you plan your expenses before and after borrowing the machinery loan. Using this calculator, calculate your monthly EMI based on the interest rate and loan tenure. This way you will be sure of the amount that will go out of your pocket each month in the form of repayments. Using a machinery loan calculator is a must as this loan can decide the success or failure of your business. Taking each step with extreme caution is an absolute requirement. With a machinery loan calculator, you are taking the right steps in the right direction.
Are you still running your business with the technology of the 90s? It's time to upgrade! Borrow a machinery loan and keep up with the times by purchasing new and useful machines.
Machinery Loan Eligibility
To apply for a machinery loan you should be between 18 to 65 years old and you should have all the valid documents articulated with the size of land holdings and per acre yield.