Tailored machinery loan solutions for SMEs 

By Staff Report March 1, 2025 11:17 am IST

UGRO’s unique approach and sector-specific expertise set it apart from other lenders. J Sathiyan, Chief Business Officer at UGRO Capital, shares the importance of understanding a business’s size when determining financing options for small machinery loans.

How does the size of a business influence the financing options available for small machinery loans, and what key criteria do you evaluate during the assessment?

The size of a business plays a pivotal role in shaping its financing options. At UGRO Capital, we recognise that SMEs are not a one‐size‐fits-all segment. Smaller companies benefit from tailored packages featuring flexible repayment terms, lower interest rates, and modest loan amounts that align with their cash flow and operational needs. Larger SMEs, on the other hand, can access more substantial credit lines and customised financial solutions designed to support accelerated growth. In evaluating any application, we assess the business’s financial health, credit history, repayment capacity, and the anticipated impact of the machinery on their operations, using our proprietary GRO Score underwriting model to ensure a swift and accurate decision.

What sets UGRO Capital apart from other lenders for small machinery loans?

Our distinct advantage lies in our customer-centric approach and sector-specific expertise. UGRO Capital offers a diverse range of financing solutions for the unique needs of businesses across various industries. Our score-based assessment using the GRO Score model facilitates quick approvals, while our offerings ranging up to ₹3 crores are backed by low interest rates and flexible tenure options. This, coupled with our deep understanding of market trends and the challenges different sectors face, allows us to provide precise and relevant financial solutions that help our clients enhance productivity and competitiveness.

What should businesses consider when applying for a small machinery loan, and how does your digital documentation process streamline this process?

When applying for a small machinery loan, businesses should carefully evaluate the total cost of financing, including interest rates and fees, along with the repayment schedule. A robust business plan, accurate financial records, and detailed information about the intended machinery are essential. UGRO Capital encourages early engagement so we can provide tailored guidance right from the start. Our digital documentation process is a game changer it minimises paperwork, reduces the risk of errors, and offers real-time tracking of the application status, thereby ensuring a faster, more transparent experience for our clients.

How has the demand for small machinery loans evolved in emerging markets, particularly in tier 2 and tier 3 cities, and how do you support businesses in these regions?

Emerging markets, especially tier 2 and tier 3 cities, have seen a surge in the demand for small machinery loans. As these regions experience rapid industrialisation and urbanisation, SMEs invest in technology to stay competitive. Recognising this shift, UGRO Capital has broadened its reach by offering innovative financing solutions tailored to the specific challenges of these areas. Our embedded finance solutions and localised advisory services ensure that businesses in these regions have seamless access to affordable credit,  fostering sustained growth and modernisation.

What financing options does UGRO Capital offer startups looking to purchase small machinery, and why is this important?

Startups often encounter hurdles in accessing traditional financing due to limited credit history or collateral. UGRO Capital is committed to supporting innovation by offering financing options specifically designed for startups. We assess a startup’s viability based on its business plan and growth potential, rather than relying solely on conventional metrics. With low interest rates, flexible repayment tenures, and funding opportunities that can reach up to ₹3 crores, we empower startups to secure the machinery they need to build and expand their operations, fueling entrepreneurship and economic development.