← Back to All Loans

Plant/Machinery Hypothecation Loan

Financing new or second-hand plant and machinery for business expansion, new venture, diversification, construction and erection of machinery, or working capital needs against existing machinery.

Interest RateAs per quantum of loan, fixed by the Board of Directors under the directives of the Reserve Bank of India from time to time.
Maximum AmountSubject to Bank's Exposure Limit
Maximum Tenure60 Months
Calculate your EMI now

Key Highlights

Finance for new and second-hand machinery
Loan against existing machinery also available
Term loan facility
Flexible end-use for business growth
Hypothecation with first charge in favour of the Bank

Eligibility Criteria

Regular membership with 2.5% share linking as per RBI guidelines.
Applicant should have satisfactory banking relations and experience in the proposed business or project.
Exclusive banking relationship with the Bank, unless otherwise required.
Borrower must demonstrate capacity to generate sufficient income to service the loan.

Documents Required

Income proof of applicant and sureties.
PAN Card copy of applicant and sureties.
Project report as applicable.
Purpose proof and machinery quotation / proforma invoice.
Original purchase invoices of machinery.
Valuation report for second-hand or existing machinery.
MSME / SSI Registration Certificate, if applicable.
Partnership deed with registration certificate (for partnership firms).
MOA, AOA, Certificate of Commencement and Board Resolution (for companies).
Collateral security documents, if applicable.
Legal opinion and title search report where collateral is immovable property.
Business license.
No Objection Certificate from existing financing bank, if applicable.
KYC documents as per Bank policy.

Security & Fees

Collateral / Security

First charge hypothecation of plant and machinery financed or existing machinery. 25% for new machinery, 50% for second-hand or existing machinery

🏷️
Processing Fee
As per prescribed Bank's Service Charges.
Check fees and charges

Visit the branch or call us for more details.