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Features of ICICI Bank Machinery Loan

  • Purpose: Financing for purchasing new or used machinery, construction equipment, material handling equipment, earth-moving equipment, or refinancing existing equipment. Suitable for businesses needing equipment for captive use (e.g., supporting business operations) or revenue-generating activities (e.g., by contractors or hirers).
  • Loan Amount: Funding up to 95% of the invoice value of the machinery/equipment. Tailored to business needs, with the exact amount depending on factors like the equipment cost, business profile, and repayment capacity.
  • Loan Tenure: Flexible repayment tenure ranging from 12 to 60 months, depending on the deal and the borrower's repayment capacity.
  • Interest Rates: Competitive rates, determined based on the borrower’s profile, loan tenure, and relationship with ICICI Bank. Rates are subject to change at the bank’s discretion. For specific rates, contact ICICI Bank or visit a branch. Interest is charged on a flat rate based on the applicable scheme.
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    • Repayment Options: Repayment through ECS (Electronic Clearing Service), NACH (National Automated Clearing House), Auto-Debit (for ICICI Bank account holders), or post-dated cheques (PDCs). Prepayment is allowed, with charges as listed on the bank’s ‘Service Charges’ page. Nil prepayment charges for:
      • 1.Fixed-rate loans under priority sector lending for Small or Micro borrowers with loan amounts ≤ ₹50 lakh.
      • 2.All floating-rate loans for Small or Micro borrowers, per MSE Code of Commitment.
    • Collateral/Hypothecation: The machinery/equipment purchased is hypothecated to ICICI Bank. The invoice or Registration Certificate (RC) must reflect this hypothecation. For equipment not registered with the Regional Transport Office (RTO), a charge in favor of the bank is required. Collateral-free options may be available for certain unsecured business loans (e.g., Business Instalment Loan), subject to eligibility.
    • Eligibility: Applicants include sole proprietorships, partnership firms, private limited companies, or closely-held public limited companies with at least 2 years of relevant business experience. Self-employed individuals, contractors, mine owners, or hirers using equipment for business purposes. For Business Instalment Loans (which can be used for equipment purchase), a minimum business vintage of 5 years is required for self-employed individuals or entities. Age: Typically, applicants must be between 21 and 65 years at loan maturity.
    • Application Process:
      • Online Application: Apply online, and a bank representative will assist with documentation and formalities at the borrower’s doorstep.
      • Offline Application: Visit an ICICI Bank branch or contact a direct sales agent. Minimal paperwork with quick processing for faster fund disbursement.
    • Documentation: KYC documents: PAN Card, Aadhaar, Passport, Voter’s ID, Driving License, or utility bills for applicant and co-applicant (if applicable). Business-related documents, such as proof of business vintage, financial statements, or GST registration, may be required. Equipment invoice or Registration Certificate (RC) for hypothecation purposes. Additional documents may be requested based on the bank’s policy.
    • Processing Fees and Charges: Loan Processing Fee (LPF) and other charges are communicated at the time of application. Charges are exclusive of Goods & Services Tax (GST) and other statutory levies. Penal charges for non-compliance with loan terms (effective from April 1, 2024) are not capitalized or added as penal interest, per RBI guidelines.
    • Additional Benefits: Customized loan solutions for MSMEs and businesses to meet specific financial needs. Quick processing for faster access to funds. Option to apply with a co-applicant, based on their credit strength, to improve approval chances. Tax benefits may be available on the interest portion of the loan, reducing taxable income (subject to Indian tax regulations).
    • Accessibility: Apply through ICICI Bank’s website, branches, or 24-hour Customer Care. Loan documents are emailed as part of the “Go Green” initiative to reduce paper usage.
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Benefits of Machinery Loans

  • High Funding Support: Finance up to 95% of the invoice value of new or used machinery/equipment, reducing the need for large upfront capital.
  • Flexible Repayment Tenure: Loan tenures range from 12 to 60 months, allowing businesses to align repayments with cash flow and project timelines.
  • Competitive Interest Rates: Attractive rates based on the borrower’s profile and loan terms, making financing cost-effective.
  • Tax Benefits: Interest paid on the loan may be claimed as a business expense, reducing taxable income (subject to Indian tax laws).
  • Collateral-Free Options: Unsecured business loans (e.g., Business Instalment Loan) may not require additional collateral, with the purchased machinery hypothecated to the bank.
    • Quick and Convenient Processing: Fast loan approval and disbursement with minimal paperwork. Online application with doorstep assistance from bank representatives.
    • Prepayment Flexibility: Prepayment allowed with nil charges for: Fixed-rate loans under priority sector lending for Small/Micro borrowers (≤ ₹50 lakh). Standard prepayment charges apply otherwise, as per the bank’s policy.
    • Customized Solutions: Tailored financing for diverse needs, such as purchasing construction equipment, earth-moving machinery, or refinancing existing assets.
    • Supports Business Growth: Enables acquisition of modern machinery, improving operational efficiency, productivity, and competitiveness.
    • Accessible Application Channels: Apply via ICICI Bank’s website, branches, 24-hour Customer Care, or direct sales agents for convenience.
    • Eco-Friendly Documentation: Loan documents emailed under the “Go Green” initiative, minimizing paper use.
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How to Apply for ICICI Bank Machinery Loan

  • 1. Check Eligibility
    • Ensure you meet the basic eligibility criteria:
      • Business Entities: Sole proprietorships, partnership firms, private limited companies, or closely-held public limited companies with at least 2 years of business experience.
      • Business Instalment Loans: A minimum of 5 years of business vintage is required for equipment purchase loans.
      • Age: Typically 21 to 65 years at loan maturity.
      • Purpose: Purchase of new/used machinery, construction equipment, or refinancing existing equipment.
      • Equipment Type: Confirm the equipment type (e.g., earth-moving, material handling) qualifies for the loan.
  • 2. Choose Application Method
    • Online Application:
      • Visit the ICICI Bank website www.icicibank.com.
      • Navigate to the Business Banking section, then select Loans > Construction Equipment Loan or Business Instalment Loan.
      • Click Apply Now and fill out the online application form with details like business information, loan amount, and contact details.
      • Submit the form, and an ICICI Bank representative will contact you for further steps.
    • Offline Application:
      • Visit the nearest ICICI Bank branch and speak to a loan officer.
  • 3. Prepare Required Documents
    • KYC Documents:
      • PAN Card, Aadhaar, Passport, Voter’s ID, Driving License, or utility bills for applicant and co-applicant (if applicable).
    • Business Documents:
      • Proof of business vintage (e.g., GST registration, shop license).
      • Financial statements, ITRs, or bank statements (as required).
    • Equipment Documents:
      • Invoice of the machinery/equipment to be purchased.
      • Registration Certificate (RC) for hypothecation (if applicable).
    • Keep originals and photocopies ready for verification.
  • 4. Submit Application
    • Online: Upload scanned copies of documents (if prompted) or provide them to the bank representative during follow-up.
    • Offline: Submit documents at the branch or to the assigned representative.
    • A co-applicant (if applicable) may need to provide KYC and financial documents.
  • 5. Loan Processing and Verification
    • ICICI Bank will verify your application, documents, and creditworthiness.
    • The bank may conduct a site visit or business assessment to evaluate repayment capacity.
  • 6. Loan Approval and Disbursement
    • Upon approval, you’ll receive a loan sanction letter detailing the loan amount, interest rate, tenure, and repayment terms.

Eligibility Criteria for ICICI Bank Machinery Loans

  • 1. Business Type and Structure:
    • Eligible entities include Sole Proprietorships, Partnership Firms, Private Limited Companies, or Closely-Held Public Limited Companies.
    • Applicants can be mine owners, road contractors, builders, or hirers using equipment for captive purposes (i.e., supporting their own business operations rather than generating direct revenue through equipment rental).
  • 2. Experience and Operational History:
    • Applicants must have at least two years of operational history in the relevant sector (e.g., construction, mining, or infrastructure development).
    • Healthcare equipment loans may require 3–5 years of sector-specific experience.
    • A repayment track record of at least 12 months on any prior loans may be required to demonstrate creditworthiness.
  • 3. Financial and Credit Requirements:
    • A strong credit score (typically 750 or above) increases the likelihood of approval.
    • Minimum turnover of ₹40 lakh and profit of ₹2 lakh (or applicable figures based on business type).
    • Repayment capacity is assessed based on income, expenses, and existing debts.
  • 4. Equipment and Loan Purpose:
    • Eligible equipment includes earthmoving, mining, material handling, road construction, concrete, and material processing equipment.
    • Equipment must be hypothecated to ICICI Bank.
    • Loan can cover up to 95% of the invoice value for new machinery.
  • 5. Documentation Requirements:
    • Identity Proof: PAN Card, Passport, Voter ID, or Aadhaar Card.
    • Address Proof: Utility bills, ration card, or voters ID.
    • Business Proof: Registration certificates, GST returns, or audited financials.
    • Work Contracts: Needed for high-value loans to validate revenue generation.
    • Invoice or Registration Certificate of equipment must reflect ICICI hypothecation.
    • Financial Statements: Required for validating turnover and profit.
  • 6. Co-Applicant Option:
    • A co-applicant with a strong credit profile can be added to strengthen the application.
    • Co-applicants must provide KYC documents (PAN, Aadhaar, etc.).
  • 7. Collateral and Security:
    • Equipment financed is used as primary collateral through hypothecation.
    • Additional collateral (property or other assets) may be requested for high-risk or high-value loans.
  • 8. Loan Tenure and Repayment:
    • Tenure ranges from 12 to 60 months based on applicant profile and equipment life.
    • Repayment modes include ECS, NACH, Auto-Debit, or Post-Dated Cheques.
    • Prepayment is allowed; charges vary as per bank policy, with exceptions under MSME priority sector loans.
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Documents Required for ICICI Bank Machinery Loans

  • 1. Loan Application Form
    - A duly filled and signed loan application form, available online or at ICICI Bank branches.
    - Include photographs of the applicant (and co-applicant, if applicable).
  • 2. Identity Proof (Any one of the following for applicant and co-applicant)
    - PAN Card (mandatory for credit assessment).
    - Aadhaar Card.
    - Passport.
    - Voter ID.
    - Driving License.
  • 3. Address Proof (Any one of the following for applicant and co-applicant)
    - Aadhaar Card.
    - Passport.
    - Utility bills (electricity, water, or gas bill, not older than 3 months).
    - Voter ID.
    - Ration Card.
    - Registered rental agreement.
  • 4. Business Proof
    - Certificate of Incorporation (for Private/Public Limited Companies).
    - Partnership Deed (for Partnership Firms).
    - Shop and Establishment Act Certificate (for Sole Proprietorships).
    - GST Registration Certificate or GST returns.
    - MOA and AOA (for companies).
    - Business PAN Card (for entities other than sole proprietorships).
  • 5. Financial Documents
    - Audited Financial Statements for the last 2-3 years:
        - Balance Sheet.
        - Profit and Loss Statement.
        - Cash Flow Statement.
    - Income Tax Returns for the last 2-3 years.
    - Bank Statements for the last 6-12 months.
    - Turnover Proof: GST returns or sales records.
    - Profit After Tax Proof (if applicable).
  • 6. Equipment-Related Documents
    - Proforma Invoice or quotation from the equipment supplier.
    - Registration Certificate (RC) for equipment requiring RTO registration.
    - Hypothecation Agreement (for unregistered equipment).
    - For used equipment: valuation report and ownership transfer documents.
  • 7. Work Contracts (if applicable)
    - Work orders or contracts to demonstrate revenue potential.
    - Letter of Intent (LOI) or agreement with clients.
  • 8. KYC Documents
    - PAN Card, Aadhaar Card, or other valid proofs for applicant/co-applicant.
    - PAN Card of the business.
    - KYC of authorized signatories or partners.
  • 9. Collateral Documents (if required)
    - Property title deed.
    - No Objection Certificate (NOC) from authorities.
    - Property valuation report.
    - Encumbrance certificate.
  • 10. Repayment-Related Documents
    - ECS Mandate, NACH Mandate, or Post-Dated Cheques (PDCs).
    - Auto-Debit Form (for ICICI Bank account holders).
    - Bank account details for disbursal and repayment.

Factors for ICICI Bank Machinery Loans

  • 1. Applicant-Related Factors
    - Business Type and Structure: Eligible entities include Sole Proprietorships, Partnership Firms, Private Limited Companies, or Closely-Held Public Limited Companies. Prioritized sectors include construction, mining, infrastructure, and healthcare.
    - Business Experience: Minimum of 2 years in relevant industry; healthcare equipment loans may need 3–5 years.
    - Financial Stability and Creditworthiness: CIBIL score of 750+ preferred, with solid income, turnover (e.g., ₹40 lakh), and profit (e.g., ₹2 lakh). Previous loan EMI track record matters.
    - Repayment Capacity: Based on income, liabilities, and cash flow.
    - Relationship with ICICI Bank: Existing customers may get quicker processing and better offers.
    - Business Vintage: A longer business existence (3+ years) builds lender confidence.
    - Professional Qualifications: In case of healthcare or specialized industries, degrees/licenses can enhance eligibility.
  • 2. Machinery-Related Factors
    - Type of Machinery: Includes earthmoving, construction, mining, healthcare, and material handling equipment.
    - New vs. Used Machinery: New preferred. Used must be 5–7 years old max, valuation needed, and may attract higher rates.
    - Equipment Cost and Loan Amount: Up to 95% financing of invoice value for new machinery.
    - Hypothecation and Security: Machinery hypothecated to ICICI Bank.
    - Brand and Supplier: Preference for reputed manufacturers and verified suppliers.
    - Purpose and Revenue Potential: Captive use and revenue-generating machinery favored; contracts or LOIs may be needed.
    - Availability of AMC (Annual Maintenance Contract): AMC from vendor may strengthen application.
    - Warranty and After-Sales Service: Loans are preferred for equipment with manufacturer warranty and accessible service centers.
  • 3. Loan Structure and Market Factors
    - Loan Tenure: 12 to 60 months based on equipment life and repayment ability.
    - Interest Rates: Based on applicant profile, market conditions, and relationship with the bank. Floating/fixed options available.
    - Loan-to-Value (LTV) Ratio: Generally 70% to 95%, lower for used equipment.
    - Collateral Requirements: Primary security is machinery; additional collateral may be required.
    - Economic and Industry Conditions: Favorable sectors and policies enhance approval chances.
    - Regulatory Compliance: Equipment must meet environmental and transport standards.
    - Processing Time: Typically ranges from 5 to 15 business days, depending on document readiness and due diligence.
    - Subsidy or Refinance Eligibility: MSME borrowers may qualify for schemes like CGTMSE or SIDBI refinance.
  • 4. Documentation and Verification
    - Key Documents: Identity/address proof, business proof, financials, equipment invoice, work contracts, and collateral papers if any.
    - Verification: Strong documentation (audited financials, contracts) speeds up approval.
  • 5. External Support (Co-Applicant or Guarantor)
    - Eligibility: If the primary applicant’s credit profile is weak, a financially sound co-applicant or guarantor may improve approval chances. Their financial/KYC documents are required.

Frequently Asked Questions (FAQs)

1. What is a machinery loan from ICICI Bank?
A machinery loan from ICICI Bank, such as the Construction Equipment Loan, is a financing solution to purchase or refinance new or used equipment for industries like construction, mining, material handling, or healthcare. The financed equipment is hypothecated to ICICI Bank as security.
2. Who is eligible for a machinery loan?
- Business Types: Sole Proprietorships, Partnership Firms, Private Limited Companies, or Closely-Held Public Limited Companies.
- Sectors: Mine owners, road contractors, builders, or hirers using equipment for captive purposes.
- Experience: Minimum 2 years in the relevant industry (3 years for healthcare loans, 5 years for dentists).
- Creditworthiness: Good CIBIL score (preferably 750+), strong repayment capacity. Co-applicant can be added to strengthen the profile.
3. What types of machinery can be financed?
ICICI Bank finances a variety of equipment:
- Earthmoving: Excavators, bulldozers, loaders.
- Construction: Cranes, concrete mixers, pavers.
- Mining: Dump trucks, drilling machines.
- Material Handling: Forklifts, conveyors.
- Material Processing: Crushers, grinders.
- Healthcare: MRI machines, X-ray units (if applicable).
Both new and used equipment can be financed.
4. What are the loan amount and financing limits?
- ICICI Bank offers up to 95% of the invoice value for new machinery.
- For used machinery, the loan-to-value ratio is lower (around 70–80%) and depends on the equipment’s condition and valuation.
5. What is the loan tenure?
The tenure ranges from 12 to 60 months depending on the equipment's lifespan, loan amount, and repayment capacity.
6. What are the interest rates for machinery loans?
Interest rates depend on the applicant’s credit profile, type of machinery, and tenure. Rates may be fixed or floating. Contact ICICI Bank for the latest applicable rates.
7. Is collateral required for a machinery loan?
The financed machinery is hypothecated to ICICI Bank. Additional collateral may be required for high-risk or high-value loans, based on the credit appraisal.
8. What documents are required to apply?
- Application Form: Duly filled with photos.
- Identity & Address Proof: PAN, Aadhaar, Passport, Voter ID, utility bills.
- Business Proof: Registration certificate, GST, MOA/AOA.
- Financials: Audited balance sheets, ITR, and bank statements (last 2–3 years).
- Equipment Documents: Proforma invoice or RC for used equipment.
- Work Contracts: If applicable.
- Collateral Documents: If additional security is provided.
9. Can I finance used machinery?
Yes. ICICI Bank finances used machinery with a valuation report. Equipment should be in good condition, not older than 5–7 years, and free from legal encumbrances.
10. How do I apply for a machinery loan?
You can apply through:
- Online: Visit ICICI Bank's website.
- Branch: Visit your nearest ICICI Bank branch.
- Agents: Through authorized ICICI Bank sales agents.
- Customer Care: Call the 24-hour helpline for assistance.

List of ICICI Bank Machinery Loans

  • Construction Equipment Loan
  • Healthcare Equipment Loan
  • Commercial Vehicle Loan (Heavy, Light, and Small Vehicles)
  • Material Handling Equipment Loan
  • Earth Moving Equipment Loan
  • Refinance Loan for Existing Equipment
  • Term Loan for Machinery Purchase (under SME/MSME Financing)