HDFC Loan for Construction Equipment

HDFC bank has a specialised loan scheme for financing commercial or construction equipment. Under the scheme, upto 100% loan is provided for commercial/construction equipments like excavators, tippers, mixers, cranes, etc. HDFC Bank is the second largest private bank in India as measured by assets with over 4,281 bank branches across India.

Overview

The HDFC loan for construction equipment is aimed at providing a hassle free loan for construction equipment from preferred manufacturers like JCB, Telcon, L&T Komatsu, Caterpillar, Volvo, Escorts, Case, Schwing Stetter, Hyundai, Terex, Ace, Liugong, Greaves, Sany, Putzmeister, Atlas Copco, Apollo and many more. Under the scheme, loan of upto 100% is provided for the following type of construction equipment:

Backhoe Loaders
Excavators
Tipper/ Dumpers
Transit Mixers
Cranes (Pick N Carry, Heavy Duty, Tower & Derrick)
Wheel Loaders
Compactors
Road Rollers
Pavers
Dozers
Graders
Compressors
Drills
Hot Mix Plants
Concrete Pumps/ Boom Placers
Crushing Plants
RMC Plants
Rock Breakers
WMM Plants
DG Sets
Fork Lifts
Reach Stackers
Piling Rigs and many more

Loan can be availed for both new and used commercial equipment under this scheme.

Amount of Loan

Under the scheme, loan of upto 100% is provided for construction equipment with a tenure of upto 60 months. MSME or SSI borrowers also enjoy no prepayment penalty on prepayment of floating rate loans, irrespective of source of funds (own source of funds or balance transfer from another Bank). The rate of interest charged on construction equipment loan is between 9.31% to 16.22%, with the average being around 11.22%. In addition to the interest charges, a loan processing charge of 1% in case of new equipment and 1.5% in case of used equipment is applicable. Further, loan documentation charges of 1.5% of loan amount is also applicable after sanctioning of loan during disbursement of loan.

How to Apply

Application for HDFC construction equipment loan can be made at any HDFC branch. Document like PAN card, address proof, bank statement, tax registrations, tax return, and business financial statements (if available) must be submitted to process the bank loan.

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Frequently Asked Questions

Common questions about Construction Equipment Loans.

The HDFC loan for construction equipment provides financing for a wide range of commercial and construction equipment such as excavators, tippers, mixers, cranes, backhoe loaders, wheel loaders, compactors, road rollers, pavers, dozers, graders, compressors, drills, hot mix plants, concrete pumps, crushing plants, RMC plants, rock breakers, WMM plants, DG sets, fork lifts, reach stackers, and piling rigs, among others.

Yes, the HDFC loan for construction equipment allows you to avail financing for both new and used commercial equipment under this scheme.

Under the HDFC loan for construction equipment scheme, you can get a loan of up to 100% of the equipment's value, subject to the bank's evaluation and approval.

The loan tenure for construction equipment under this scheme is up to 60 months or 5 years.

The interest rates for the HDFC construction equipment loan typically range from 9.31% to 16.22%, with the average rate being around 11.22%.

No, MSME or SSI borrowers do not have to pay any prepayment penalties on prepayment of floating rate loans under this scheme, regardless of the source of funds (own source or balance transfer from another bank).

The loan processing charges are 1% of the loan amount for new equipment and 1.5% for used equipment.

Yes, there is a loan documentation charge of 1.5% of the loan amount, which is applicable after the loan is sanctioned and during the disbursement process.

You can apply for the HDFC construction equipment loan at any HDFC bank branch by submitting the required documents, such as PAN card, address proof, bank statements, tax registrations, tax returns, and business financial statements (if available).

The HDFC construction equipment loan is primarily designed for commercial and construction businesses that require financing for purchasing or leasing construction equipment from reputable manufacturers listed in the article.