By the FlexiLoans Editorial Desk · Reviewed by a business-lending specialist · Updated August 2026
Quick answer: Yes. If your business is GST-registered, you can usually claim input tax credit of about ₹2.7 lakh (18% GST) on a ₹15 lakh machine, plus 15% yearly depreciation on the ex-GST cost. You cannot claim depreciation on the GST portion once you take the input credit.
In this guide:
- How a machinery loan works and what it funds
- EMI on a ₹15 lakh loan across 24, 36 and 42 months
- Depreciation at 15% and the tax it saves you
- GST input credit and how to claim it
- Eligibility, documents and how to apply
Key takeaways
- A ₹15 lakh machinery loan costs roughly ₹48,400 to ₹74,900 a month, depending on tenure.
- At 15% written-down value, you can claim about ₹5.79 lakh in depreciation over three years.
- GST-registered buyers can recover around ₹2.7 lakh as input tax credit.
- Depreciation and GST together pull real money back and cut the machine’s true cost.
What is a machinery loan and how does it actually work?
A machinery loan is business finance to buy plant, equipment or tools. You borrow the machine’s cost. You repay it in fixed monthly EMIs. Most lenders structure it as a term loan, so your tenure and instalment stay predictable from day one.
At FlexiLoans, a machinery loan is usually unsecured. That means you pledge no property. Ticket sizes run from ₹50,000 to ₹50 lakh. Interest starts at around 1% per month. Tenure runs 12 to 42 months. Once your papers are clean, disbursal can happen in about 48 to 72 hours.
A machinery loan lets you install the equipment now and repay from the cash it helps you earn.
A machinery loan can fund a wide range of assets:
- CNC machines, lathes and presses
- Packaging and bottling lines
- Printing and textile equipment
- Commercial kitchen and cold-storage units
- Medical, dental and diagnostic devices
You can compare limits and rates on the FlexiLoans machinery loan page. Every regulated lender must also share a Key Fact Statement, as directed by the Reserve Bank of India, so you see the true cost upfront.
₹15 lakh machinery loan EMI across 24, 36 and 42 months
Your EMI rests on three things: the loan amount, the interest rate and the tenure. A longer tenure lowers the monthly outgo but raises total interest. The table below assumes ₹15 lakh at an indicative 18% per year on a reducing balance. Fees sit outside these numbers.
| Tenure | Approx. monthly EMI | Total interest | Total repayment |
| 24 months | ₹74,900 | ₹2.97 lakh | ₹17.97 lakh |
| 36 months | ₹54,200 | ₹4.52 lakh | ₹19.52 lakh |
| 42 months | ₹48,400 | ₹5.33 lakh | ₹20.33 lakh |
Indicative only. Assumes 18% p.a. on a reducing balance; processing fee (2–3%) and GST on fees excluded. Verify live rates before you apply.
A shorter tenure saves interest, while a longer tenure protects your monthly cash flow. Pick the balance that suits your order book, not just the lowest EMI.
Enter your own machine cost and rate in the planner below to see the exact figure. You can also try the business loan EMI calculator for a quick estimate.
Depreciation on machinery and your 3-year tax shield
Depreciation is the tax deduction for wear and tear on your machine. The Income Tax Act allows a general rate of 15% per year on plant and machinery. You calculate it on the written-down value (WDV), so the deduction shrinks a little each year but keeps working for you.
Here is the three-year picture on a ₹15 lakh machine, valued net of GST because you claim the tax separately as input credit.
| Year | Opening WDV | Depreciation @15% | Closing WDV | Tax saved @30% |
| 1 | ₹15,00,000 | ₹2,25,000 | ₹12,75,000 | ₹67,500 |
| 2 | ₹12,75,000 | ₹1,91,250 | ₹10,83,750 | ₹57,375 |
| 3 | ₹10,83,750 | ₹1,62,563 | ₹9,21,188 | ₹48,769 |
15% WDV rate per the Income Tax Department. Tax saved shown at an illustrative 30% slab; your rate may differ.
Over three years you claim about ₹5.79 lakh in depreciation, which saves roughly ₹1.73 lakh in tax at a 30% rate. That is real money back in your account.
One rule to watch: if you put the machine to use for under 180 days in the first year, you claim only half the depreciation that year. You carry the rest forward. Check the current schedule on the Income Tax Department site before you file.
GST input tax credit on machinery: what you can claim
Machinery usually attracts 18% GST. On a ₹15 lakh machine, that is ₹2.7 lakh of tax. If you are GST-registered and use the machine for taxable business, you can claim that ₹2.7 lakh as input tax credit (ITC). The credit offsets the GST you collect on sales, so it flows straight back to you.
To claim ITC cleanly, keep these in place:
- A valid tax invoice from the supplier
- The supplier’s return filed, so the credit shows in your GSTR-2B
- The machine used for your taxable business, not personal use
- Your own GST registration active
You cannot claim both ITC and depreciation on the same GST amount. Take ITC on the tax, then depreciate only the ex-GST cost. For most registered firms, that combination captures the largest benefit. Read the current rules on the official GST portal before you decide.
The full picture: EMI vs tax shield and GST savings
Now stitch the three numbers together. You borrow ₹15 lakh and pay EMIs. But depreciation and GST both pull cash back over the same period.
| Item | Indicative amount |
| Machine cost (ex-GST) | ₹15,00,000 |
| GST @18% (claimable as ITC) | ₹2,70,000 |
| EMI (36 months) | ~₹54,200 / month |
| Total interest (36 months) | ~₹4.52 lakh |
| Depreciation (3 years, 15% WDV) | ₹5,78,813 |
| Tax shield @30% (3 years) | ~₹1.73 lakh |
| GST input credit recovered | ₹2,70,000 |
Indicative figures at an illustrative 30% tax slab and 18% loan rate. Your numbers depend on your profile.
Between the ₹2.7 lakh GST credit and the ~₹1.73 lakh tax shield, the machine’s effective cost drops well below the sticker price. A machinery loan is a type of term loan, so the EMI stays fixed and easy to plan against these savings. The planner below combines EMI, depreciation and GST into a single view for your exact machine cost.
Eligibility and documents for a machinery loan in India
Lenders look for a steady, provable business. For an unsecured machinery loan, most expect:
- Business vintage of 1 to 2 years
- Minimum monthly turnover around ₹2 lakh
- Applicant age between 21 and 65
- A CIBIL score of 700+ (720+ helps for unsecured loans)
Keep these documents ready:
- KYC papers (PAN and Aadhaar)
- Bank statements for the last 6 to 12 months
- GST returns
- Audited financials or ITR for loans above ₹20 lakh
Clean bank statements and a 700+ CIBIL score give you the best rate and the fastest yes. Fix any bounced payments before you apply.
Frequently asked questions
Q: Can I claim depreciation and GST input credit on a ₹15 lakh machinery loan? Yes, but not on the same rupee. Claim GST input credit of about ₹2.7 lakh on the tax you paid. Then claim 15% depreciation on the ex-GST cost of ₹15 lakh. You simply cannot depreciate the GST portion once you take that input credit.
Q: What is the EMI on a ₹15 lakh machinery loan? At an indicative 18% per year, expect roughly ₹74,900 for 24 months, ₹54,200 for 36 months, or ₹48,400 for 42 months. Your actual EMI depends on your rate, tenure and credit profile. Use the planner below to check your own figure.
Q: What is the depreciation rate on machinery? The Income Tax Act sets a general rate of 15% per year on plant and machinery, applied on the written-down value. Some assets qualify for higher rates. If you use the machine for under 180 days in year one, you claim only half the depreciation that year.
Q: Do I need collateral for a machinery loan? Not always. FlexiLoans offers unsecured machinery loans up to ₹50 lakh, so you may not need to pledge property. Your limit and rate depend on turnover, business vintage and credit score.
Q: How fast can I get a machinery loan? With clean documents, disbursal can take about 48 to 72 hours. Loans above ₹20 lakh need audited financials or ITR, which can add a little time to the review.
Ready to plan your machine purchase?
A ₹15 lakh machinery loan is more affordable than the sticker suggests. Count the depreciation. Add the GST credit. Then size the EMI around your cash flow, not the other way round. When the numbers work, act quickly, because the machine starts earning the day you switch it on.
Run your figures through the planner below, then apply for a machinery loan with FlexiLoans and get a decision fast.
Sources & official references:
- Income Tax Department — Depreciation on plant & machinery — https://incometaxindia.gov.in
- GST portal — Input tax credit on capital goods — https://www.gst.gov.in
- Reserve Bank of India — Key Fact Statement / fair lending — https://www.rbi.org.in
Disclaimer: Figures are indicative and current as of August 2026. Interest rates, schemes and eligibility change — verify live details on official sources and the FlexiLoans website before applying. This is general information, not financial advice.
