We offer loans for a comprehensive range of construction machinery,
Keep your cash reserves intact and avoid tying up funds in depreciating assets.
Acquire modern, high performance machinery to enhance on‑site productivity and reduce downtime.
Choose repayment options that match your project cycles weekly, monthly or tailored schedules.
Construction Equipment Loans finance specific machinery, while Infrastructure Project Finance funds entire construction projects with long term repayment based on cash flow. Here are the few differences,
| Feature | Construction Equipment Loan | Infrastructure Project Finance |
|---|---|---|
| Purpose | Specifically used to purchase or lease construction machinery and equipment like excavators, cranes, loaders and mixers. | Used to fund entire construction projects including land, materials, labor, and infrastructure development. |
| Collateral | Typically, the equipment being purchased can act as primary security/collateral. | Often secured by the project assets, future cash flows or corporate guarantees. |
| Loan Amount | Covers up to 90% of equipment cost, depending on lender and equipment value. | Usually higher ticket loans, calculated based on total project cost, sometimes running into crores for large infrastructure projects. |
| Repayment Structure | Structured around the useful life of the equipment, often shorter tenures. | Structured around project cash flow and completion timelines, can be medium to long term (5-15 years). |
| Interest Rates | Generally competitive and fixed, lower than general business loans because the loan is asset backed. | May be slightly higher, often tied to project risk, cash flow projections and lender assessment. |
| Eligibility | Contractors, builders, infrastructure companies needing specific machinery. | Developers, construction companies or corporate entities undertaking large scale projects. |
| Focus | Mainly tied to the equipment’s value and usability. | Overall project execution, revenue generation and external factors like approvals or market demand. |
Secure reliable financing solutions for purchasing or upgrading construction equipment and keep your projects running on schedule. Our tailored loan solutions help contractors and builders acquire essential machinery without straining working capital.
A Construction Equipment Loan is a business financing product that helps contractors, builders, and companies purchase or upgrade construction machinery like JCB, Tippers, excavators, backhoe loaders, cranes, concrete mixers, and other heavy equipment without using up working capital
Construction equipment loans typically cover a wide range of machinery, including:
Eligible applicants include
Construction equipment loans are usually secured, with the equipment itself serving as collateral for the loan. It is possible to get up to 100% of the cost of CE value.
Most lenders offer financing from 80% to up to 100% of the equipment’s invoice value, depending on your credit profile, business stability and lender policies.
Yes, many lenders allow financing of multiple machines under a single equipment finance facility, subject to credit evaluation and repayment capacity.
The repayment tenure for construction equipment finance generally ranges from 1 year to 6 years, depending on machinery type, business cash flow, and lender guidelines.
Yes, borrowers with a good repayment track record may be eligible for a top up loan to purchase additional machinery or meet working capital requirements.
Yes, comprehensive insurance coverage is generally required for financed machinery to protect against damage, theft, and operational risks during the loan tenure.
The Loan to Value (LTV) ratio in construction equipment financing is calculated based on the invoice value or fair market value of the machinery. Most lenders finance between 75% to 100% of the equipment cost, depending on the borrower’s credit profile, project strength, and business stability.
Loans are preferred when long-term ownership is planned.
Most lenders allow prepayment or foreclosure, but charges may apply depending on the bank’s terms and tenure completed.
Yes, businesses can refinance a construction equipment loan to secure lower interest rates, reduce EMI burden, extend tenure, or improve cash flow while replacing existing equipment finance with better loan repayment terms.
Yes, businesses can obtain used construction equipment loans to purchase pre-owned machinery with flexible repayment options, lower upfront investment, and funding support based on equipment valuation, condition, and borrower credit profile.
Eligibility for a used construction equipment loan depends on business income stability, credit profile, repayment capacity and machinery condition, while lenders also evaluate equipment age, valuation, and operational usability before approving financing.
Contractors and infrastructure companies can apply for specialized construction equipment loans to purchase advanced machinery like tunneling, drilling, or road construction equipment, with loan approval based on project needs, business stability, and repayment capacity.
An earth moving equipment loan helps contractors and infrastructure companies finance machinery such as excavators, bulldozers, and loaders used in construction and mining projects, with flexible repayment options based on business cash flow and project requirements.
The MSME equipment scheme helps small businesses purchase machinery through subsidized loans and credit support programs promoted by the Ministry of Micro, Small and Medium Enterprises, improving manufacturing capacity and business productivity.
Yes, eligible MSMEs may receive government subsidy benefits or interest support on construction equipment financing under various MSME and infrastructure development schemes, helping reduce borrowing costs and encourage business expansion.
Most lenders prefer a credit score of 650 or higher for construction equipment loan approval, along with stable business income, good repayment history, and proper equipment valuation to secure better loan terms and faster approval.
Most lenders prefer a credit score of 650 or above to approve a loan for purchasing JCB machinery, along with stable business income, repayment capacity, and proper equipment valuation for faster approval and better loan terms. Kfis helps you with maintaining and facing cibil score fluctuations.
Yes, businesses can refinance existing loans taken for tipper trucks and JCB machines to secure lower interest rates, reduce EMI burden, extend repayment tenure or improve cash flow through better loan terms.
We are a company that has been providing end to end lifecycle support for business portfolios since 2000. Our goal is to help entrepreneurs and small business owners get the financial assistance they need to grow and thrive in their industries.
Read MoreKhannan Finance,
32/N4 Jawaharlal Nehru Salai,
Ekkatuthangal, Chennai- 600032
+91-8939000056
khannanfinance@gmail.com
