Photo Courtesy:JCB
Construction equipment financiers are very optimistic about their prospects.
“We’re extremely bullish on lending in the construction equipment finance segment and expect the segment to grow at a better CAGR than the industry,” says BK Tripathi, Head, Construction Equipment Loans, IndusInd Bank, Consumer Finance Division.
“Against the backdrop of the Government of India’s huge spend on infrastructure under the PM Gati Shakti scheme, we have an ambitious plan for financing construction and mining equipment in ensuing years,” says Dhrubashish Bhattacharya, Head, MSME Business, Bank of Baroda.
“We expect the construction industry to boom looking at the capex plans of the Government, and of course we’d like to be a part of this growth,” says Senthil Kumar, Executive Vice President & CEO, Vehicle and Equipment Finance, Manappuram Finance. That said, Kumar believes larger infrastructure development projects will take time to materialise.
Sufficient finance is vital for the Indian construction industry. Consider the fact that 90-95 per cent of the machines sold by JCB are funded by banks and NBFCs, shares Deepak Shetty, CEO & MD, JCB India. “Banks and NBFCs play a major role in enabling the purchase of construction equipment. They regularly come up with various schemes that are ultimately for the benefit of our customers.”
So, what sort of construction equipment is it easiest to get finance for?
