An Equipment and Machinery Loan in Singapore is a type of business loan that provides financing specifically for the acquisition of equipment, machinery, and related assets. These loans are designed to help businesses, particularly those in manufacturing, construction, logistics, and other sectors that rely on specialized equipment, to purchase or upgrade their machinery and equipment.

The loan amount is typically based on the cost of the equipment or machinery being financed. Banks will usually finance up to 80% of the equipment’s value as a loan, and businesses can often choose to finance either the full cost or a portion of it.

Equipment and Machinery Loans in Singapore generally have flexible loan tenors that align with the expected useful life of the assets being financed. Loan tenors can range from a year to seven years. The interest rates for these loans are fixed, depending on the lender and the terms of the loan agreement. Fixed rates range from 2.5% – 4.5% per annum depending on the bank or financial institution.