Last updated: December 17th, 2019 3:36 PM

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.