Asset based short-term (usually for one to five years) loan payable in a fixed number of equal installments over the term of the loan. Term loans are generally provided as working capital for acquiring income producing assets (machinery, equipment, inventory) that generate the cash flows for repayment of the loan.

Documents Required for Machinery Term Loan

Documents Required
Audited Financial Statement of last 3 years alongwith Income Tax Return Acknowledgement
Provisional Balance Sheet for the current year.
Projection of Sales , Purchase, Stock & Raw Material Consumption for the next year.
Quotation of Machinery to be purchased.
Installed Capacity, Licensed Capacity - existing & proposed, Envisaged Capacity Utilisation.
Details of Raw Material requirement, calculation, how desired ?Source of supply and supply position. Cost of ram material supported by current quotation.
Catalogue / Brochure of Machine.
Maintenance arrangement & costs thereof.
Project implement schedule.
Cost already incurred.
Sources of such expenditure.