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In today's era, the use of bulldozers and other construction machines is increasing rapidly. From road construction to large construction projects and handling heavy goods, these machines are needed at almost every major construction site. In India, companies like JCB and Mahindra sell many types of construction machines.

If you are also thinking of buying a JCB and starting the business of running it on rent, then this can be an earning option for you. But how much money is required to buy the machine, how much EMI will have to be paid and how much can be earned in a month? Let us understand the complete account.

How much EMI on JCB worth Rs 32 lakh?

Machines like JCB are usually bought by construction companies, contractors and people involved in rental business. There is also an option to take a loan from the bank to buy the machine. However, the loan amount and interest rate depend on the customer's profile, credit score and bank conditions.

The price of a JCB bulldozer in Delhi is said to be between Rs 32 to 38 lakh. For example, if you buy a machine worth Rs 32 lakh and the bank finances up to 90 percent, then you can get a loan of around Rs 28.80 lakh.

In this situation, you will have to pay about 10 percent i.e. Rs 3.20 lakh as down payment.

Suppose the bank charges 9 percent annual interest on this loan, then your estimated EMI at different tenures could be something like this:

• 5 year loan: around Rs 59,784 per month
• 6 years loan: around Rs 51,914 per month
• 7 year loan: Around Rs 46,337 per month

Keep in mind that these are approximate figures based on one example. Actual EMI may vary depending on the bank's interest rate, processing fee, loan amount and your credit profile.

How to earn from JCB?

After purchasing JCB, you can earn money by renting it to construction companies or contractors. Generally, the fare of such machines is decided according to their running time i.e. per hour.

Depending on the use of the machine and the local market, it is estimated that the rent from JCB will be around Rs 1,000 to Rs 1,500 per hour.

Now if as an example, let us assume that your machine runs for 8 hours daily and works for 22 days in a month, then the total running will be:

8 hours × 22 days = 176 hours

If you earn an average of Rs 1,500 per hour, then:

176 × ₹1,500 = ₹2.64 lakh

That means, according to this, the gross earning from the machine can be around Rs 2.64 lakh in a month.

How much income will be left after taking out expenses?

This entire amount is not your profit. Diesel, operator's salary, servicing, maintenance, insurance and other expenses are also involved in running the machine.

For example, if all these expenses are taken together to be around Rs 1.5 lakh per month, then:

₹2.64 lakh – ₹1.50 lakh = ₹1.14 lakh

That is, according to this estimate, more than Rs 1 lakh monthly operating income can be saved from the machine.

However, if the EMI of the machine is also added to this expense then the actual amount saved in hand will be less. Apart from this, how many hours of work the machine gets every month, what is the local rental rate and how much is spent on diesel and maintenance, all these things will have a direct impact on the profit.

Keep these things in mind before buying

Before buying JCB as a rental business, one should not decide only on the basis of hourly earnings. It is important to calculate the EMI of the machine, down payment, diesel, operator, maintenance, insurance and regularity of work.

If the machine gets enough work consistently, this business can provide good cash flow. At the same time, if the machine remains idle for a long time, EMI and other fixed expenses can weigh heavily on your earnings.

Therefore, before buying a JCB, it is important to thoroughly check the rental rates in your area, the work available from construction companies and the cost of maintenance of the machine.