Purchase Loan
A Purchase Loan is a type of financial assistance designed to help individuals or businesses acquire goods or assets, such as equipment, machinery, or even property, by borrowing money. These loans are typically secured against the asset being purchased, allowing you to acquire valuable assets without paying the full cost upfront. Purchase loans come with flexible repayment terms, competitive interest rates, and are ideal for those looking to grow their personal or business assets.
Eligibility
When it comes to Purchase Loans, the eligibility criteria vary based on the type of asset being financed and whether the loan is for personal or business purposes. Here are the general requirements that most banks and financial institutions will consider:
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Age: Applicants should typically be between 21 and 58 years old. However, age limits may differ slightly based on the lender.
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Business Vintage: Most financial institutions require that the business has been operational for at least 12 months. A longer operating history adds strength to your application.
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Purpose of Purchase: The loan should be used strictly for business-related purchases — such as machinery, tools, raw materials, or commercial equipment. You may need to provide invoices or quotations.
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Annual Turnover: A minimum turnover of Rs. 15 lakhs over the last 6 months, is required, depending on the loan amount and the lender. Financial documents like GST filings, bank statements, and tax returns are used to verify this.
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Credit Score: A good credit score, 700 and above, is preferred by most lenders. This score shows your creditworthiness and can improve your chances of approval. If you have a lower score, don’t worry; we can help you explore options.
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Profitability: The Loan-to-Value ratio determines how much of the property’s value will be financed by the lender. Typically, lenders finance 70%–80% of the property’s market value, and the borrower must contribute the remaining amount as a down payment.
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Existing Financial Obligations: Lenders assess the applicant’s existing debts and monthly obligations to ensure they can manage additional EMI payments. A low debt-to-income ratio increases your chances of loan approval.
Documents Required
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Proof of Identity (Aadhar Card, PAN Card, Voter ID Card)
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Registered phone number
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Registered e-mail address
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Bank Statement (Past 6 months)
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Income Proof (Past 2 years ITR)