Introduction to Warehouse Financing
Loanpao’s warehouse financing solutions in 2025 empower businesses to acquire, construct, or upgrade warehouses for logistics, storage, or supply chain needs. With competitive interest rates and flexible terms, Loanpao supports businesses in scaling their storage infrastructure to meet growing demand.
Key Features of Warehouse Financing
Loanpao’s warehouse financing offers:
- Loan Amount: ₹20 lakh to ₹15 crore, based on property value and business financials.
- Repayment Tenure: 5 to 20 years, with flexible EMI options.
- Interest Rates: Starting at 9% p.a. for secured loans, 11% p.a. for select unsecured options.
- Collateral: Warehouse property or other assets typically required; limited collateral-free options.
- Quick Disbursal: Funds within 7–20 working days post-verification.
- Purpose Flexibility: Use for warehouse purchase, construction, or modernization.
Types of Warehouse Financing
Choose the right loan for your logistics needs:
| Loan Type | Purpose | Typical Loan Amount |
|---|---|---|
| Warehouse Purchase Loan | Buy existing warehouse facilities | ₹50 lakh–₹10 crore |
| Warehouse Construction Loan | Build new warehouses or storage units | ₹1 crore–₹15 crore |
| Warehouse Modernization Loan | Upgrade or automate existing warehouses | ₹25 lakh–₹5 crore |
| Lease Rental Discounting | Leverage rental income from leased warehouses | ₹50 lakh–₹7 crore |
Eligibility Criteria
Qualify for a warehouse financing loan with:
- Business Age: Minimum 2 years of operations.
- Credit Score: CIBIL score of 650+ for secured loans; 700+ for unsecured options.
- Revenue: Minimum ₹1 crore annual turnover.
- Registration: Registered as proprietorship, partnership, LLP, or Pvt. Ltd. in India.
- Property Documents: Clear title and valuation for the warehouse property.
Documents Required
Submit these for a smooth application:
- Identity Proof: Aadhaar, PAN, or passport of business owners/directors.
- Business Proof: GST registration, Udyam certificate, or incorporation documents.
- Financials: 6 months’ bank statements, ITR for 2 years, audited financials.
- Property Documents: Title deed, sale agreement, approved plans, and valuation report.
- Others: Recent photographs, loan application form.
Benefits of Choosing Loanpao
Why Loanpao for warehouse financing:
- Competitive Rates: Interest rates starting at 9% p.a. for secured loans.
- High Loan Amounts: Up to ₹15 crore for large-scale warehouse projects.
- Flexible Tenure: Repayments up to 20 years to suit cash flows.
- Fast Processing: Approvals in 7–20 days for timely project execution.
- Expert Support: Guidance on property documentation and loan structuring.
- Transparent Terms: No hidden fees or charges.
How to Apply for Warehouse Financing
Steps to secure financing:
- Online Application: Fill out the form on Loanpao’s website.
- Document Submission: Upload business, financial, and property documents.
- Verification: Loanpao assesses financials, business stability, and property valuation.
- Disbursal: Funds credited within 7–20 days upon approval.
Apply at Loanpao Apply Now.
Secured vs. Unsecured Warehouse Financing
Compare your options:
| Feature | Secured Loans | Unsecured Loans |
|---|---|---|
| Collateral | Required (warehouse, assets) | Not required (limited availability) |
| Interest Rates | 9%–12% p.a. | 11%–15% p.a. |
| Loan Amount | Up to ₹15 crore | Up to ₹50 lakh |
| Risk | Asset seizure on default | No asset risk |
| Processing Time | 10–20 days | 7–15 days |
Tips for Successful Warehouse Financing
Maximize your loan benefits:
- Accurate Valuation: Ensure precise warehouse valuation to maximize loan amount.
- Clear Title: Verify property documents to avoid delays.
- Financial Planning: Align EMIs with rental income or business cash flows.
- Logistics Integration: Plan warehouse upgrades to enhance supply chain efficiency.
- Tax Benefits: Leverage deductions under Section 24 and 80C for interest and principal repayments.
Frequently Asked Questions
Warehouse financing from Loanpao provides loans to businesses for purchasing, constructing, or upgrading warehouses to support logistics and storage needs.
Businesses with 2+ years of operations, ₹1 crore turnover, CIBIL score of 650+ (secured) or 700+ (unsecured), and clear warehouse titles qualify.
Industrial warehouses, cold storage units, logistics hubs, or commercial storage facilities with clear titles and approved plans can be financed.
Approvals take 7–20 working days, depending on document verification and property valuation.
Yes, prepayment is allowed with minimal or no charges after a 6–12 month lock-in period, depending on the lender’s terms.
A credit inquiry may cause a minor dip initially, but timely repayments can improve your CIBIL score over time.
Defaulting may lead to penalties, credit score damage, or property seizure (for secured loans). Loanpao offers restructuring options to avoid defaults.