As per a market study of India’s wood sector done by the State of Michigan, the total consumption of timber, industrial and firewood in India is expected to reach 153 million cubic metres by the end of 2020. Nevertheless, the domestic supply remains limited with little growth. This gap between demand and supply thus poses a wide scope of opportunities to branch into, for those in the logging business in India or seeking to step a foot in this sector.
However, to extract timber and other wood products for industrial requirements, one needs to first invest in heavy-duty forestry or logging equipment. Setting up such a business requires substantial investment.
Even so, it can be conveniently met through a suitable logging equipment financing option.
Such funding options are also available for individuals already into the logging business. These business owners can invest in advanced forestry equipment to improve their efficiency in timber extraction. Various lenders offer financing in the form of loans, both for an existing business and as a logging start-up loan to fulfil the funding needs of foresters.
Take a look at the available options!
Types of Financing Available for Logging Equipment Purchase
There are several types of forestry equipment available in the market that fulfil various requirements, including industrial, construction and related purposes. Some of them are enlisted below -
- Felling equipment like harvesters, chainsaws, feller chippers, bunchers, harvester-skidders, etc.
- Equipment for extracting like farm tractors, cable yarding systems, combination machines, etc.
- Equipment for processing such as wood splitters, slashers, grinders, etc.
- Other supporting equipment like mulchers, loaders, dozers, and the likes.
These mechanical equipment types often involve sizeable investment. Thus, a logging equipment financing option must also come with scope for high-value funding. While it can be difficult to come across a loan option that is specifically designed to fund logging equipment purchase, you can consider the few funding options below -
- Business loan
These loans can typically serve as logging equipment financing option as they do not come with end-use restrictions. Also, the funds are available without having to provide any asset as collateral.
You can thus meet simple logging equipment financing eligibility criteria like income and occupational requirements to apply for it with a suitable lender. However, due to a higher risk involved in the absence of collateral, the interest rate against it can be considerably high.
- Equipment financing
These loan options are designed to cater to a business’s equipment and machinery purchase requirements. Financial institutions provide this loan on the basis that the equipment or machinery so purchased with the funds availed will remain collateralised with the lender until complete repayment of the loan.
The logging equipment financing interest rates are usually lower than that of business loans as lenders offer such loans against the value of the asset pledged. These rates may, however, still be higher than some other cheaper financing options. Plus, you can avail the funds only after you have made an initial investment for equipment purchase.
- Loan against property
These are high-value, secured funding options that give access to loans of considerable ticket-size for financing expensive purchases. Nevertheless, the benefits on these loans can be utilised at most only if you avail the funds for a long term.
- Gold loans
While the loan options mentioned above are suitable for specific circumstances, another alternative that can be proposed to cater to your logging equipment financing needs is a gold loan.
With features that suit a borrower’s diversified funding needs, a gold loan can be a smart funding option to finance the purchase of various logging equipment. With easy logging equipment financing repayment options, a short tenure and low interest rates, paying off the loan liability is easier and more affordable than many other funding options.
Plus, simple logging equipment financing online apply process offered by Rupeek Fintech Private Limited on its gold loans only make them more accessible than ever.
Not only that, but gold loans from this lender also come with industry-first advantages that make opting for this financing option a smart alternative.
Why Should You Opt for a Gold Loan to Finance Logging Equipment Purchase?
- A high Loan to Value ratio
Gold loans usually come with a high Loan to Value or LTV among several secured loan options. Especially with Rupeek Fintech Private Limited, you can get the highest LTV for your gold.
LTV is the maximum amount of advance a lender is ready to extend as a percentage of the pledged asset’s market value. A high LTV thus results in your increased chances of availing a high loan value. Additionally, this particular lender also provides the highest per gram value on the gold pledged.
- Doorstep loan facility
As a first-in-market initiative, Rupeek has introduced doorstep facility for its gold loan borrowers. Thus, once you have made an online application via their app, official website, or by placing a call, a loan manager will be appointed to visit your house for KYC registration and gold valuation, and for further processing.
- Instant disbursal
On completion of the valuation, the loan is approved and disbursed to your account instantly. The entire process, from gold valuation to disbursal, takes only 30 minutes to complete. Also, the loan manager leaves your house with the pledged gold only after you receive the amount in your bank account.
- Convenient repayment at a low interest rate
Rupeek makes logging equipment financing affordable with convenient repayment options for its gold loan. Unlike other financing options, you only need to pay the interest per month against your loan, and the principal liability can be repaid through bullet repayment at the tenure’s end. You can also choose to defer the total repayment amount until the tenure’s end and pay at a go.
- High security for your pledged asset
You can also remain worry-free regarding your pledged gold as strict safety protocols are followed in its handling and storage. Once pledged, your gold is collected in a GPS-traceable bag and transported for safe storage at the nearest partner bank’s safety vault located within 3 km of your house. Further, the gold is also insured for improved safety, for which you will not have to bear any additional costs.Additionally, benefits like simple KYC document requirements and tenure of 3 months to 6 months, extendable up to 1 year make the gold loan a suitable logging equipment financing option. You only need to possess gold to avail the loan and do not require to fulfil any other eligibility criteria. So, apply for it online today and fulfil the quick financing needs of your logging and forestry business.