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 EQUIPMENT FINANCING
 Financing Options
 New Equipment Finance – We finance any kind and brand of construction equipment once the manufacturer meets our minimum evaluation criteria in terms of quality of the product, ability to service and customer feedback about the product.
 First Time Users – We finance new entrants with minimum approval procedures.
 Hiring Segment – We finance Plant Hirers who buy and lend equipments to contractors for projects.
 Refinance – We finance instant liquidity to meet urgent business and financial needs.
 Repurchase Loan – We finance buyers of second hand equipment / used equipment. They must meet the norms of ICICI Bank.
 Genset – We extend loans against purchase of Gensets subject to the transaction proposed meeting the policy norms of ICICI Bank.
 Types of equipment loans
 Construction Equipment Loan
 Farm Equipment Loan
 Medical Equipment Loan
 Office Equipment Loan
 Equipment Loans
 Banks customise construction equipment loans to suit the needs of all its clients; right from new entrepreneurs to large business houses. Leading banks provide value added services by tying up with leading construction equipment manufacturers to provide a wide variety to its clients. Such loans can also fall under the category of personal loans.
 Maximum Loan offered by Banks for Construction Equipment Loans:
The amount of loan depends on a number of factors like the purpose of loan, repayment capacity, past and present financial standing and also various bank records and statements furnished by the customer.
The loan amount is repayable through Equated Monthly Installments or EMI.
 Interest Charged by Bank on Construction Equipment Loans:
Interest rates are generally fixed according to the prime lending rate.
They can be on fixed or floating basis.
Interest rates also depend on the customer's profile, tenure and amount of loan.
 Process Of Construction Equipment Loans Application:
Customers can apply for loan online or visit the nearest branch of leading banks.
Leading banks also provide value added services by sending their representatives to the client's house or workplace.
 Farm Equipment Loan
 Banks are providing a lot of financial assistance to farmers in order to provide impetus to the agricultural sector.
 Banks are entering into agreements with leading commercial vehicles /tractor manufacturers to provide easy finance to farmers.
 Maximum Amount of Farm Equipment Loans Provided:
The maximum amount of loans varies from customer to customer depending on the value of land being mortgaged, tenure of loans required, income of the farmer.
Banks generally fund 90% of the cost of tractor, which is upgraded to 100% sometimes. Loans required for farm equipments are funded to the extent of 50% of the value of the equipment.
 Interest Charged by Banks for Farm Equipment Loans:
The rate of interest also varies depending on the loan amount, viability of the proposition and the value of collateral security provided.
Banks also provide farmers with lower rate of interest to give a push to the agricultural sector.
 Process of Farm Equipment Loans Application:
Farmers can contact their nearest tractor dealer, which in turn have tie ups with various leading banks.
Dealers provide them with all the information and also help them choose the best option suiting their requirements
 Medical Equipment Loan
Banks are targeting top- notch doctors as new segment of customers by offering them attractive medical equipment loans.
This loan is primarily taken to either purchase new equipment or taking over the existing one.
 Maximum Loan offered by Banks for Medical Equipment Loans:
Loans are available starting from Rs. 10000. There is no maximum amount of loan.
It is generally decided after considering the financial background of the customer, his repayment capacity, tenure of the loan etc.
Loan is given maximum up to 85% of the value of the medical equipment.
The loan is repaid through Equated Monthly Installments or EMI. Loan is repaid within a tenure of 1 to 5 years.
 Interest Charged by Bank on Medical Equipment Loans:
Most banks charged according to the existing market rates.
These rates are highly competitive.
The rate of interest can either be taken on fixed or fluctuating basis.
 Process Of Medical Equipment Loans Application:
Loan can be applied for by filling the application form either in person or online.
Banks normally charge around 2% of the total loan amount as the processing fee.
 Office Equipment Loan
Office equipment loan is the latest offering from various banks.
Right from furniture, to workstations to computers, loan can be taken to suit your requirements.
 Maximum Loan offered by Banks for Office Equipment Loans:
The quantum of loan depends on factors like repayment capacity of the borrower, tenure of loan, policies of the bank, financial background of the borrower.
Loan is sanctioned up to 70% of the actual value of the office equipment.
Repayment is done through Equated Monthly Installments or EMI. Repayment tenure can range from 1-3 years.
 Interest Charged by Bank on Office Equipment Loans:
Interest is charged either on fixed or floating rate.
Interest are also fixed according to the prevailing market rates.
 Process Of Office Equipment Loans Application:
Loan can be obtained by either filling an online form or directly approaching the bank.
A processing fee is normally charged by banks which is around 2% of the actual amount of loan.
 Interest Rates
Interest rate is the rate of interest that a lender charges the debtor, as if it were the price the debtor is paying for the loan the lender has given him.
Depending on the type of loan and the lender offering it, interest rates can vary greatly.
Some loan types include business loans, mortgage loans and student loans.
Credit card balances are essentially loans as well. Every loan will have an interest rate, and that rate will be either a fixed or floating (variable) rate.
 Fixed Rate of Interest
A fixed rate of interest is a type of interest that remains constant throughout the duration of the loan.
If your loan started with a 10 percent rate of interest that is fixed, this percentage will remain for all the time you have this loan, which means until you are able to pay your loan off.
However, a fixed rate can be divided into periods. For example, for the first 12 months of your loan, you have a 10 percent fixed rate, and for the rest of the time, your loan has a 20 percent rate of interest.
 Fluctuating Rate of Interest
A floating rate, known as a variable rate, is a type of interest rate that is constantly fluctuating according to fluctuations in the national economy.
Your lender does not guaranty you a specific rate of interest.
However, he can give you an idea of the range through which your interest rate will fluctuate.
 Advantages
A fixed rate has lower risk than variable rates because it will not suddenly shoot up because of a dramatic change in the economy.
Also, because you know how much you need to pay in interest, you can more easily project your financial situation in the future and make plans accordingly.
Fixed rates of interest offer you security and stability.
One of the main advantages of a variable interest rate is that it is generally lower than fixed rates because it comes at a lower risk for lenders.
Also, even when there are changes in the variable rates of your loan, these changes are usually in small increments that are separated by long periods, usually weeks or months.
This gives you time to adjust for the higher interest payments you have to make.
 Disadvantages
Because of the security they bring to borrowers, fixed rates are less secure for lenders, and for this reason, lenders must set rates that are often higher than what variable rates would be.

The main disadvantage of variable rates is that, because of sudden rises in your interest due to fluctuations in the economy, you might end up paying a lot more for your loan than you would if you had a loan with a fixed rate.