Overview of Industrial Loan Schemes for Manufacturing

Industrial loan schemes for manufacturing in India support factories, machinery upgrades, and business expansion. Loanpao’s industrial loans offer tailored financing to meet the needs of manufacturers in 2025.

Why Manufacturing Loans Matter

Manufacturing loans drive growth by providing:

  • Capital for Expansion: Funds for new facilities or production lines.
  • Technology Upgrades: Financing for modern machinery.
  • Working Capital: Support for raw materials and operations.
  • Government Support: Subsidies and incentives for manufacturers.

Government Industrial Loan Schemes for Manufacturing

Government-backed schemes provide affordable financing for manufacturers:

Key Schemes

  • PMMY (Pradhan Mantri Mudra Yojana): Loans up to ₹10 lakh for micro and small manufacturers.
  • CGTMSE Scheme: Collateral-free loans up to ₹2 crore.
  • Stand-Up India: Loans for SC/ST and women-owned manufacturing units.
  • TUFS (Technology Upgradation Fund Scheme): Subsidies for textile and jute industries.

Loanpao’s Role

Loanpao partners with banks and NBFCs to offer:

  • Access to government-backed schemes.
  • Streamlined application processes.
  • Competitive interest rates starting at 9.5% p.a.

Comparison of Schemes

Scheme Loan Amount Interest Rate Collateral
PMMY Up to ₹10 lakh 10.0%–12.0% p.a. Not required
CGTMSE Up to ₹2 crore 9.5%–14.0% p.a. Not required
Stand-Up India ₹10 lakh–₹1 crore 10.0%–13.0% p.a. Not required
TUFS Varies Subsidized rates Varies

Loanpao’s Industrial Loans for Manufacturing

Loanpao offers customized industrial loans for manufacturers:

Loan Types

  • Machinery Loans: For purchasing advanced equipment.
  • Working Capital Loans: For operational expenses.
  • Factory Expansion Loans: For scaling production capacity.
  • Green Manufacturing Loans: For eco-friendly upgrades.

Eligibility Criteria

To apply for Loanpao’s industrial loans:

  • Business Vintage: Minimum 1 year.
  • Turnover: ₹5 lakh annual turnover.
  • KYC: Business registration, Aadhaar, or PAN.
Documents Required
  • GST registration or factory license.
  • Bank statements (12 months).
  • ITR or financial statements (2 years).

Benefits of Industrial Loan Schemes for Manufacturing

These schemes empower manufacturers by offering:

Financial Flexibility

Flexible repayment terms and low rates reduce financial strain.

Technology Upgradation

Loans support automation and modern equipment adoption.

Support for SMEs

Small and medium manufacturers benefit from priority sector lending.

Case Study: Manufacturing Success

A textile manufacturer scaled operations with a ₹50 lakh Loanpao loan under CGTMSE.

How to Apply for Loanpao’s Industrial Loans

Applying is simple and digital:

Steps to Apply

  1. Visit Loanpao’s application page.
  2. Fill in business and financial details.
  3. Upload required documents.
  4. Get approval within 48–72 hours.

Why Choose Loanpao?

Loanpao provides low rates, fast disbursal, and compliance with RBI guidelines.

Frequently Asked Questions

These are financing schemes for manufacturers to fund machinery, expansion, or working capital.

Yes, schemes like CGTMSE offer collateral-free loans up to ₹2 crore.

Rates start at 9.5% p.a., depending on the loan scheme and credit profile.

Loanpao disburses funds within 48–72 hours post-approval.

GST registration, bank statements, and ITR are typically required.

Yes, small manufacturers with ₹5 lakh turnover are eligible.

Yes, schemes like TUFS offer subsidies for specific industries.

Loanpao adheres to RBI guidelines and partners with regulated lenders.

Yes, Loanpao offers green manufacturing loans for eco-friendly upgrades.

Visit Loanpao’s website or contact support via the contact page.