Term loans to
A term loan is given in one shot against collateral security to meet long-term needs of the business — new machinery, expansion or long-term working capital. Loans start from ₹5 lakh.
- Higher amounts
- Ex-banker credit team
- Multi-lender comparison
Term Loan & Machinery Loan, explained simply
A term loan is disbursed in one shot to meet the long-term working capital requirement of the company, against collateral security. It is the right tool for purchasing machinery or meeting any long-term financial requirement of the business.
Lenders look closely at your Debt Service Coverage Ratio (DSCR) — whether your profits comfortably cover all loan repayments. Check yours below before you apply; we will help structure tenure and moratorium so the numbers work.
- Loans from ₹5 lakh against collateral property
- Purchase of new or used machinery and equipment
- Long-term working capital for expansion
- Structured repayment, with moratorium where the project needs it
- Machinery loans: the machine itself can form part of the security
- Comparison across banks and NBFCs
Know your numbers before the bank does
DSCR check Bankability
DSCR = (PAT + depreciation + interest) ÷ (interest + principal repaid in the year) · lenders look for ≥ 1.25
Indicative estimate using standard lending formulas and editable default rates. Final amount, rate and terms are decided by the lender after appraisal.
EMI calculator Formula
EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1] · r = annual rate ÷ 12 ÷ 100 · n = months
Indicative estimate using standard lending formulas and editable default rates. Final amount, rate and terms are decided by the lender after appraisal.
Who qualifies
Business Criteria
- Proprietorship, partnership or private limited company
- Minimum 3 years in the same business; 1 year at the same place
- Profitable for the last 2 years
- Clean repayment track record of at least 12 months
Security Criteria
- Applicant must own office or residence
- Collateral property with clear title, free of encumbrance
- Approved sanction plan for commercial / industrial property
What you'll need
- Photograph of all applicants
- KYC: PAN card + Aadhaar / Passport / Driving Licence
- Residence proof: Passport / Voter ID / Driving Licence / recent electricity or telephone bill
- Office proof: GST registration / Udyam certificate / utility bill of the premises
- Income proof: last 2 years ITR with computation of income and financials
- Bank statement: last 6 months of the main business account
- Constitution proof: MOA–AOA / partnership deed (for companies and firms)
- Existing loans: repayment schedules / sanction letters of all running loans
- Ownership proof: electricity bill / house tax receipt / property papers of office or residence
- Audited financials: last 2 years with audit report and all schedules
- Sanction letter of any existing cash credit / overdraft limit
- Collateral security: papers of the property offered
- Registrations: GST / other government registrations
- Machinery: proforma invoice / quotation (for machinery loans)
Tip: use our document checklist builder to tick off what you have and send the pending list to us on WhatsApp.
When this loan is the right tool
From first question to disbursal, in four steps
Check eligibility
Use a calculator or the 3-step check. No effect on your credit score.
Share documents
Our checklist tells you exactly what's needed — send it on WhatsApp or drop it at our office.
Ex-banker pre-check
Our in-house credit team reviews your file and selects the lenders most likely to approve at the best rate.
Sanction & disbursal
We follow up with the lender until the money is in your account — and stay for after-sales support.
Term Loan & Machinery Loan: your questions answered
Debt Service Coverage Ratio = (net profit after tax + depreciation + interest) ÷ (interest + principal repaid in the year). It shows whether your business earns enough to service its loans. Most lenders look for at least 1.25, and are comfortable above 1.5.
For machinery loans the machine is hypothecated to the lender; depending on the amount, additional collateral property may also be required.
Term loans start from ₹5 lakh.
Minimum 3 years in the same line of business, with at least 1 year of operation at the same place and profits in the last 2 years.
For new machinery or expansion, lenders can allow a short moratorium until the investment starts generating cash. We structure this with the lender.
A term loan funds long-term assets and is repaid in EMIs; a cash credit limit funds day-to-day working capital and is drawn and repaid as needed. Many businesses use both.
Yes — last 2 years of audited financials with the audit report and all schedules, plus 6 months of bank statements.
Floating-rate business loans to individuals and micro & small enterprises sanctioned or renewed on or after 1 January 2026 carry no pre-payment charges under RBI's directions.
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Apply for term loan & machinery loan with an ex-banker on your side
One conversation, many lenders. We pre-check your file, negotiate the rate and stay with you after disbursal.
- WhatsApp+91 98717 48555
- Office011-45123555
- Emailsandeep@bhavyaa.com
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