Overview of Industrial Loan Rates for SMEs 2025
Industrial loan rates for SMEs in 2025 have been adjusted to support growth, as updated by financial institutions and Loanpao. As of 01:16 AM IST, July 04, 2025, these rates reflect current economic conditions and government incentives. This section provides an overview of the latest rates and trends.
Current Industrial Loan Rates
Loanpao offers competitive rates for SMEs in 2025:
| Loan Type | Interest Rate | Loan Amount | Tenure |
|---|---|---|---|
| Equipment Financing | 7% - 9% | ₹5 lakh - ₹2 crore | 3-7 years |
| Working Capital Loan | 8% - 10% | ₹10 lakh - ₹1 crore | 1-3 years |
| Expansion Loan | 9% - 11% | ₹1 crore - ₹5 crore | 5-10 years |
Note: Rates may vary based on credit score and collateral. Contact Loanpao for personalized quotes.
Benefits of Industrial Loans for SMEs
Key advantages for SMEs in 2025:
- Low Rates: Subsidized rates under government schemes.
- Flexible Terms: Customizable repayment schedules.
- Quick Approval: Processing within 5-7 days.
- Growth Support: Funding for machinery and expansion.
- Subsidies: Up to 2% interest reduction for MSMEs.
Eligibility and Application Process
To qualify for industrial loans with Loanpao:
- Business Age: Minimum 2 years of operation.
- Turnover: Annual turnover of ₹50 lakh+.
- Documents: PAN, GST, and bank statements.
- Credit Score: Minimum 600 required.
- Collateral: Optional for loans up to ₹50 lakh.
Apply online or visit a Loanpao branch for assistance.
Frequently Asked Questions
Rates range from 7% to 11% depending on loan type and tenure.
SMEs with 2+ years of operation and ₹50 lakh+ turnover.
Approval typically takes 5-7 days with complete documentation.