Established in 1955 and headquartered in Mumbai, State Bank of India (SBI) is India’s largest public sector bank and a trusted commercial and infrastructure financing name. With thousands of branches across urban and rural India, SBI provides a robust financial backbone for the construction, agriculture, mining, and logistics industries. Known for its transparent practices, affordable lending, and wide-ranging financial products, SBI has been instrumental in powering India’s industrial and infrastructure growth.
SBI offers specialised Construction Equipment Loan products that cater to contractors, builders, and business owners looking to purchase excavators, backhoe loaders, wheel loaders, cranes, tippers, compactors, and other heavy equipment. Its term loan and deferred payment guarantee (DPG) schemes provide funding from ₹10 lakh to ₹100 crore with attractive interest rates, repayment tenures of up to 5 years, and easy processing. Whether you are investing in new or used machinery, SBI’s construction equipment financing solutions help you scale operations without straining your working capital.
In addition to direct construction equipment loans, SBI also offers loans for generators, compressors, crushers, material-handling equipment, and agricultural implements. These loans come with custom EMI options, optional equipment insurance coverage, and interest concessions for on-time repayment. With reliable service, flexible schemes, and nationwide reach, SBI stands out as a leading construction equipment financier in India.
Calculate your loan EMI in 3 easy steps. Use EMI calculator to estimate your EMI and total amount payable.
SBI’s Construction Equipment Loans are designed for individuals, contractors, proprietors, companies, and fleet owners engaged in construction, mining, transportation, and earthmoving operations. Eligibility depends on business experience, machinery usage, income stability, and credit profile.
PAN card, Aadhaar, voter ID, passport, or driving license and lates passport size photographs for identity verification.
Utility bill, Aadhaar, passport, voter ID, or rent agreement showing current residence or business location.
GST registration, partnership deed, company incorporation certificate, or trade license.
Last 2–3 years’ ITRs, audited financial statements, or bank account statements to establish repayment ability.
Pro forma invoice or valuation report of the equipment to be financed, whether new or used.
Details of hypothecation, insurance premium, and existing machinery for asset-backed loan processing.
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SBI Construction Equipment Loan is a term loan or deferred-payment facility offered by the State Bank of India to help customers purchase construction machinery such as backhoe loaders, excavators, wheel loaders, motor graders, concrete plants, tower cranes, and forklifts.
SBI Construction Equipment Loan covers a wide range of machinery including earthmoving equipment like backhoe loaders, hydraulic excavators, wheel loaders, motor graders, skid steer loaders, and dumpers, as well as concrete equipment such as transit mixers, concrete pumps, and batching plants, in addition to road machinery, material handling equipment, and processing units like crushers and screens.
SBI Construction Equipment Loan is available to both existing SBI customers and new borrowers operating in construction, EPC, or mining sectors, provided they have a stable cash flow, a satisfactory banking history, at least 3 years of business experience, and meet the minimum collateral and income tax compliance requirements.
Under SBI Construction Equipment Loan, the loan amount can range from a minimum of ₹10 lakh (or ₹25 lakh for certain applicants) up to ₹100 crore, depending on the borrower’s profile, business size, and creditworthiness.
To avail SBI Construction Equipment Loan, applicants are generally required to bring in a margin of 20% of the equipment cost, and in many cases, provide collateral amounting to at least 25% of the loan value, depending on the loan structure and risk profile.
The tenure for SBI Construction Equipment Loan can go up to 72 months (6 years), although in some scenarios the maximum term may be limited to 48 months depending on the equipment type and applicant’s financials.
SBI Construction Equipment Loan interest rates are generally linked to the bank’s base rate or External Benchmark Rate (EBS), where MSMEs are charged repo rate plus a spread of around 2.65%, and other borrowers are offered rates based on 6-month MCLR, typically ranging between 10.3% to 11.3% annually.
SBI Construction Equipment Loan involves processing fees of approximately ₹25,000 per equipment, capped at ₹3 lakh per equipment, along with other applicable charges such as valuation, documentation, legal fees, and insurance; prepayment penalties may apply based on tenure and borrower type.
To apply for SBI Construction Equipment Loan, borrowers must submit an application form, KYC documents like PAN and Aadhaar, proof of business such as ITRs and financial statements for the past two years, equipment quotations or proforma invoices, and bank statements or proof of ongoing contracts.
The approval timeline for SBI Construction Equipment Loan is typically around 14 working days for loan amounts up to ₹25 lakh, while higher-value loans may take longer based on the complexity of documentation and internal appraisal under SBI’s MSME credit norms.
Yes, under SBI Construction Equipment Loan, the machinery being purchased is hypothecated as the primary security, and in most cases, the bank funds up to 80% of the invoice value, with the equipment serving as the main collateral.
Yes, SBI provides funding for used machinery depending on its condition, age, valuation, and your business credibility.
For individuals, there are no prepayment penalties. For businesses, prepayment within the first two years may attract up to 4% charges.
SBI offers EMI-based repayment, bullet repayments, and structured EMIs linked to project cash flows or seasonal income patterns.
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