Best NBFCs for Machinery Loans in the Service Sector

Introduction

There are several service sector MSMEs where that might support machinery for day to day running of the business or to expand their business in the market. As a small business owner, it might be difficult to get that machinery into the business due to many reasons like limited business space, unavailable funds, etc.

This is the space where NBFCs come into to fulfill the financial needs of purchasing required machinery. With their online loan application and customer-centric approach, they can fulfill the financial needs, where the MSME business owner can purchase machinery for his service business or expand their business space, etc.

What is NBFC

An NBFC or a Non-Banking Financial Company is a financial institution that offers many kinds of services ranging from loans, credit facilities, and asset management to other financial products but does not have a banking license. NBFCs play an essential role in the Indian financial system by providing credit that traditional banks find difficult to give to underserved sectors like SMEs. NBFCs fall under the Reserve Bank of India (RBI), but the rules vary here compared to commercial banks. Flexible loans with quicker processing and less paperwork are one reason why MSMEs prefer them for machinery loans.

Best NBFCs for Machinery Loans in 2025

1. Kinara Capital

Kinara Capital is one of the leading NBFCs in providing machinery loans for 2025. This NBFC primarily caters to small-scale businesses all across 6 states in India- more specifically, areas that are badly under-serviced. Kinara Capital offers easy and quick machinery loans and can be availed of to buy any sort of equipment, vehicle, or other tools required by MSMEs in the service industry. They fund to purchase of new machinery and repair of existing machinery as well.

The process of applying is not complicated with Kinara msme loan, and loans can have approvals within 24-hours with flexible repayment of the EMIs. With their mobile app “myKinara” any business owner can apply for a business loan hassle-free.

2. Bajaj Finserv

Bajaj Finserv is yet another big NBFC that gives machinery loans to MSMEs in India. They have a good reputation in the Indian financial market and are also known for their quick, hassle-free loans. Bajaj Finserv avails flexible loan amounts for the purchase of machines and other equipment required in the service sector.

Bajaj Finserv offers competitive interest rates along with easily understood loan repayment structures, which ensures smooth cash flow for businesses. Additionally, they offer pre-approved loans to existing customers, which makes the process easy when applying for a machinery loan. There is minimal paperwork, and loan dispersals tend to be quick.

3. Tata Capital

Tata Capital belongs to the Tata Group and is regarded as one of the most trustworthy NBFCs in India. This company provides machinery loans that come with flexible tenures, making it easier for various MSMEs in the service sector to invest in the equipment they require. The company also offers secured and unsecured loan options at competitive interest rates along with quick approval procedures.

Tata Capital provides funding solutions that cater to the needs of MSMEs, as they help acquire machinery according to business models. The vast network of branches and customer support provided by Tata Capital ensures easy access for MSMEs to loan facilities across the country.

4. Mahindra Finance

Mahindra Finance is an old NBFC in India and holds a large market share in rural and semi-urban markets. The company offers a wide range of loan offerings to MSMEs in the service sector, including a machinery loan.

Mahindra Finance provides new as well as used equipment on machinery loans for a business to choose what best suits according to the requirements and budget. It also offers loans with lesser paperwork and faster disbursal, making it a viable option for MSMEs looking to enhance their operations using machinery.

5. L&T Financial Services

Another leading NBFC providing machinery loans to MSMEs in India is L&T Financial Services (LTFS). The company finances virtually all the equipment falling under a broad category, including construction equipment to health care devices. LTFS has emerged as one of the companies that offer competitive interest rates and flexible loan terms suitable for MSMEs’ financial needs.

L&T Financial Services also has customized financial solutions to aid businesses in having an adequate cash flow so that the liability can be repaid within its given time. It has the fastest loan sanction process with minimal documentation and facilitates accessibility to machinery finance without much hassle.

Conclusion

From a sewing machine to a tailor to a billing machine to a restaurant owner, any machinery finance offered by the NBFCs is considered one of the key solutions for MSMEs in India for scaling in the market. These finance options like kinara capital loan help fill the financial gaps for businesses to grow and expand more proportionately.

Flexible, prompt, and hassle-free loan options are available at competitive interest rates with minimal paperwork and faster processing times in the important NBFCs like Kinara Capital, Bajaj Finserv, Tata Capital, Mahindra Finance, and L&T Financial Services. All such options make NBFCs a favorite financial institution for MSMEs in terms of sourcing finance to buy machinery for the smooth functioning of any service-based business. Thus, with the ever-changing face of the industry, NBFCs shall play a key role in helping MSMEs to grow economically strong in the competitive marketplace.