MSMEs (Micro, Small and Medium Enterprises) form a significant part of the Indian economy. MSMEs need latest machinery/equipment for their business to reduce the price of production and stay competitive in their respective industry. Also, MSMEs need new machinery to scale up their businesses. But MSMEs find it difficult to fund machinery purchase due to lack of credit from most Banks or big NBFCs. Most of these financial institutions have stringent requirements wrt documentation, business vintage, business turnover, etc. which small scale businesses are not able to satisfy. That has created a huge credit gap in the MSME industry.
ZipLoan(an RBI registered NBFC) focuses on catering requirements of such small scale businesses, who are looking for finance to purchase new machinery/equipment. ZipLoan has custom tailored a product for this segment. Some key reasons why you should opt for ZipLoan are:
Maximum Amount of Loan
Ziploan finances up to 70% of the value of machinery. ZipLoan provides INR 1- 5 lacs as equipment finance.
The loan can be repaid in 1 to 2 years as based on the customer’s choice.
The loan needs to be repaid in fixed monthly instalments. There is no prepayment penalty.
Fees and Charges
There is a processing fee of 3% for equipment finance.
The customer needs to fulfill the following eligibility criteria to avail an equipment loan from ZipLoan
- Minimum Turnover of INR 10 lac in the last 12 months.
- ITR for last 2-3 years, with last year ITR of more than INR 2.5 lacs.
- Either house or business premises should be owned.
- Business place separate from the residence.
- Business vintage(operations) for at least 3 years.
- PAN card.
- Last 12 months bank statement.
- Last 2-3 years ITR.
- Business Place address proof.
- Residence address Proof.