Introduction to Industrial Loans for Manufacturing

Industrial loans are empowering India’s manufacturing sector in 2025 by providing accessible financing for expansion, modernization, and innovation. Loanpao partners with banks and NBFCs to streamline loan approvals, supporting manufacturers in scaling operations.

Why Industrial Loan Approvals Are Rising

Key factors driving increased loan approvals in manufacturing:

  • Government Initiatives: Schemes like Make in India and PLI boost lending.
  • Digital Processes: Fintech platforms enable faster approvals.
  • Economic Growth: Stable economy supports manufacturing investments.
  • Lower Rates: Interest rates as low as 7% p.a. due to RBI policies.
  • MSME Support: Special focus on small and medium manufacturers.

Types of Industrial Loans for Manufacturing

Loanpao offers tailored industrial loans for manufacturers:

Loan Type Details
Machinery Loan Up to ₹20 crore for equipment purchases at 7–9% p.a.
Working Capital Loan Up to ₹50 crore for operational needs at 7.5–10% p.a.
Expansion Loan Up to ₹75 crore for factory or capacity expansion
Green Manufacturing Loan Financing for eco-friendly upgrades and technology
Project Finance Customized loans for large-scale manufacturing projects

Note: Loan terms vary by lender and manufacturing scale.

Eligibility Criteria for Industrial Loans

Manufacturers applying through Loanpao must meet:

  • Business Type: Registered manufacturing units, MSMEs, or corporates.
  • Turnover: Minimum ₹1 crore annually (varies by lender).
  • KYC: PAN, GSTIN, and registration certificates.
  • Financials: Audited balance sheets and ITR for 2–3 years.
  • Credit Score: 650+ preferred for competitive rates.

Tip: Use Loanpao’s online eligibility tool for instant feedback.

Documents Required

Streamlined documentation for industrial loans:

  • Business Proof: Certificate of Incorporation, GSTIN, or Udyam Registration.
  • Identity Proof: PAN and Aadhaar of directors/partners.
  • Financials: Audited financials, ITR, and bank statements.
  • Project Details: Business plan or project report for expansion loans.
  • Collateral: Property or machinery documents, if applicable.

Benefits of Loanpao’s Industrial Loans

Loanpao’s industrial loans offer:

  • Competitive rates starting at 7% p.a.
  • Fast approvals within 5–10 days.
  • Flexible repayment tenures up to 15 years.
  • Access to government schemes like PLI and MSME subsidies.
  • Expert guidance for loan structuring and compliance.

Frequently Asked Questions

Government initiatives, digital processes, and economic stability drive faster approvals.

Rates start at 7% p.a., depending on loan type and lender.

Registered manufacturing units with a minimum turnover of ₹1 crore annually.

Collateral may be required for loans above ₹5 crore, depending on the lender.

Loanpao ensures disbursal within 5–10 days for approved applications.