The TIIC launched a scheme for the Equipment Finance Scheme For Existing Clients. They head towards the aim of helping the startups and already existing users in any of the schemes. Also getting funding for equipment is a financial instrument. That provides business owners with financing to buy new machinery or repair existing machinery.
Financing for machinery is useful for both SMEs and large companies. Also, company owners and equipment loan firms enjoy tax advantages. Moreover, the rate of interest, loan amount, and tenure of the loan can vary from bank to bank. Finance leases, hire purchase contracts, operating leases, etc. are additional options connected with equipment leasing.
What is the Eligibility for the Equipment Finance Scheme For Existing Clients?
Individuals, partnership firms, limited liability partnerships, companies, trusts, and societies. All must include the following:
- Should be in operation for at least three years.
- Must earn profits and stated dividends during the heading two financial years.
- Not involved in any default to institutions or banks in the payment of their dues.
- Hold positive net worth.
Equipment Finance Scheme For Existing Clients Benefits:
- A) Instant Loan Penalty: – The TAT for all loan loans is very short. Usually, if all the documents you need are delivered by a client. It does not take more than a week to get a letter of punishment.
- B) Decrease / Tax Benefits: – The maximum return on Equipment Loans reduces tax because of the decrease in the Balance Sheet.
- C) Up to 80% Invoice Value: – Another advantage is that you can get up to 80% of the invoice amount. Also, including GST gives you the flexibility to spend more on business.
- D) Flexible Repayment Option: – Many flexible payment options are available today with various lenders. Because, offers you flexibility in payment options, various project cost-planning solutions, etc.
What are the Documents required for the Equipment Finance Scheme?
Certain Documents are required when applying for a machine loan. Also, it’s easy to verify your details and will help you get a loan. So, the following documents need to be submitted when applying for a machine loan, as follows:
- KYC documents
- Proof of ID: Aadhar card, PAN card, Passport, voter ID
- Proof of residential address
- Business address proof
- Business registration Proof: – Partnership title / Certified copies of MOA / AOA
- Bank statement 6 months ago
- Latest passport-size photographs of the applicant or applicant
- Two years ago Income tax and audited income
- Supplier details and equipment names
- CMA report