Loan Against Machinery (TUF) Scheme

Eligibility of borrower:

  • Having current account holder of the Bank.
  • Borrower / partners / directors must be a member of the bank.
  • Machineries which are to be purchased, must be covered under TUF scheme.

Purpose of Loan:

  • Purchase of machinery for their own business.

Quantum of Finance:

  • Up to 70% of the cost of machinery.

Share Linkage:

  • Borrower must have Bank's share linkage @ 1% of the loan sanction amount.


  • Loan tenure up to 96 months.
  • Nominal Processing Charge
  • 2% loan closure charge of loan outstanding amount will be charged, In case of Loan closed above Rs. 10 Lacs through Bank transfer.
  • Easy Process
  • Interest is to be charged on reducing balance method.
  • Two Guarantors, out of one must be a non-relative guarantor.

Prime Security:

  • Hypothecation of machinery.

Collateral Security:

  • Mortgage of property.