Construction Equipment Finance

Companies engaged in the business of construction, mining, material handling, and material processing are the key drivers of the Indian infrastructural growth story. However, these companies require significant funding from time to time to maintain their daily operations. A noteworthy amount is required to procure costly construction equipment and heavy machinery.

We at Tata Capital understand the needs of real estate developers and hence, provide construction equipment financing at affordable interest rates. Our construction equipment loan can cater to your widespread requirements, including new asset finance, refinance, working capital demands, top-up loans, letters of credit, and structured finance, among others. Leasing construction equipment is seen as a better alternative to buying, since it gives a chance to deploy construction equipment without having to bear the burden of large cost or long-term investments. Furthermore, leasing is one of the cheapest and best options for construction companies to free up their line of credit.

What is a Construction Equipment Loan?

A construction equipment loan is given to individuals or companies engaged in the business of real estate development or construction. The primary purpose of this loan is to help the borrower acquire costly equipment and heavy machinery required for the construction of buildings and other real estate projects. Tata Capital’s Construction Equipment Financing is one of the affordable and best options for construction companies to procure costly apparatus and free up their line of credit.

Also known as a heavy machinery loan, a construction equipment loan can be used to procure the following machines and equipment:

Excavators
Backhoe Loaders
Graders
Bulldozers
Wheel tractor scrapers
Mixing Plants
Reach Stackers
Forklift Crushers
Trenchers
Tower cranes
Compactors
Pavers
Dump trucks
Boring machines

Penal Charges

(i) Default in payment of interest and/or principal amounts @ 36% p.a. on the defaulted amount
(ii) Dishonour Charges: Rs. 670/- (Rupees Six Hundred and Seventy only) for every Cheque/ Payment Instrument/ ECS Dishonour.
(iii) Non-creation/perfection of security: @ 2% on the outstanding principal amount will be charged for the period of delay in respect of delayed/non-submission of security/collateral related documents and non-perfection of security.

*Charges to be paid along with applicable Tax

Other Charges

Delayed/non-submission of stock statement

Not Applicable

Valuation charges

Rs 1,250/- for Used Vehicle and Rs 710/- for Body AVR (including GST)

Non-adherence of financial covenants of Sanction Letter

Additional One-time charges of Rs 20,000/- per Financial Year

TSR fees/ Title search fees

As per actuals

Delayed of First Insurance cover note and non-renewal of Insurance on due date

Actual expenses incurred for purpose of collection of Insurance policy.

ROC and CERSAI filling

As per actual

Stock Audit charges

Not Applicable

Non-refundable processing fees

Rs 5,000/- For New

Rs 7,500/- For Refinance

Cancellation charges

Rs 5,000/-

Documentation charges

Rs 2500/-

Security Trustee fees

As per actuals

No. Of days for giving notice in relation to Pre Payment

30 days

Prepayment Charges

Prepayment charges/ foreclosure charges

4% of the future principal outstanding loan or Rs 5,000/- whichever is high along with applicable taxes.

Contract cancellation Charges

Rs 5,000/-

Cheque Swap Charges

Rs 500/- each time PDC/ECS/ Auto debit are swapped.

Prepayment Penalty

4% of the future principal outstanding loan or Rs 5,000/- whichever is high along with applicable taxes.

A prior notice of 30 days to be provided to TCL for any such prepayment

In Case of RC/Insurance copy not submitted by customer

Actual expenses incurred for purpose of collection of RC/Insurance policy

Default of Instalment if any

Actual expenses incurred.

Charges of repossession of Vehicle

Actual expenses incurred

Parking of Repossessed Vehicle

Actual expenses incurred at Parking yard

Repo Sale Charges

In case the asset is repossessed & sold by TCL, then 2.5% plus GST will be charged on the Sale Value towards Repo Sale Charges

Legal Charges

As per actual expenses incurred by company

All incidental expenses including valuation /legal search /ROC search /Stamp Duty and out of Pocket expenses, filing/ submission of any information /record to any agency pursuant to application law, directives, regulations etc. including Information Utility (IUJ and professional Charges, in connection with proposed credit facility will have to be borne by the Borrower/s.

All Rates and Charges shall be revised basis internal policy of TCL, and in terms with the Facility Documents.

Features of Construction Equipment Finance

As a real estate developer, you can avail of construction equipment financing from Tata Capital and use it to buy all costly equipment and construction tools for your business. Below are some salient features of our construction equipment loans:

Easy Application Procedure

You can apply for Tata Capital’s Construction Equipment Loan from the convenience of your home or office. All you need to do is visit our website and submit the required documents.

Wide Range of Equipment

We provide construction equipment loans for acquiring a wide range of equipment in real estate construction and material handling industries. Our offerings are tailored to suit all your needs.

Affordable Interest Rates

The interest rates for our heavy machinery loans are highly competitive. Additionally, we won’t charge you any hidden fees to keep your EMIs nominal.

Flexible Repayment Tenures

You can choose to repay your loan at your convenience. Our construction equipment loan tenures are flexible and range between one to five years.

No Need for Additional Security

The interest rates for our heavy machinery loans are highly competitive. Additionally, we won’t charge you any hidden fees to keep your EMIs nominal.

Refinance and Repurchase

You can also opt for our construction equipment loan to purchase or finance used equipment. This way, you can reduce your business expenses considerably.

Advantages of Construction Equipment Loan

Up to 100% Financing

Customized Financing Solutions

Flexible Repayment Options

Easy Eligibility Criteria

Simple Documentation

Instant Approval

Quick Disbursal

Structured Loans

Attractive OEM schemes

CEQ Tatkaal Loans

Who can apply for a Construction Equipment Loan

At Tata Capital, we provide commercial vehicle finance to a wide range of customers, including:

Individuals who need commercial vehicles for their living
Small & Medium sized enterprises (SMEs)
Proprietorship & Partnership Firms
Private & Public Limited companies
First Time Users
Transporters

Captive customers, hirers, contractors, and mine owners can also apply for our construction equipment loans.

Explore our Other Solutions

Term Loans

Tata Capital Term Loans are designed to help you meet all your business requirements and fund your business expansion and growth.

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Working Capital Loans

Also known as a working capital term loan, Tata Capital can help you secure easy and quick funding to meet your business expenses at competitive interest rates.

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Structured Products

At Tata Capital, we provide your business a wide range of customized financing solutions driven by a combination of assets, contracts and underlying cash flows.

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Equipment Finance & Leasing

Tata Capital brings you comprehensive and innovative, solution-oriented asset financing solutions to help you procure the right equipment for your business.

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Construction Equipment Finance