If you own a factory shed or industrial plot inside a West Bengal Industrial Infrastructure Development Corporation (WBIIDC) park, your approach to property-backed borrowing needs to be fundamentally different from that of a freehold landowner. The rules are stricter, the documentation is heavier, and the valuation mechanics work differently. But the opportunities — for those who prepare correctly — are just as significant.
This guide breaks down everything a factory owner in Kalyani, Falta, Uluberia, Bishnupur, or any other WBIIDC industrial park needs to know before approaching a bank for a loan against property in 2026.
Why Leasehold Industrial Land Is Treated Differently by Lenders
Most industrial plots allotted by the WBIIDC are not freehold. You do not own the land outright — you hold a long-term lease, typically for 99 years, issued by the corporation. This leasehold structure means that in the event of a loan default, the bank cannot simply auction your plot to recover its money the way it could with freehold land. Any transfer or sale of the leasehold rights requires the WBIIDC’s explicit permission, which introduces a layer of risk that banks price very carefully.
This is why the loan against property process for WBIIDC assets involves more scrutiny, more documentation, and often a lower loan-to-value ratio than an equivalent loan on residential or commercial freehold property. Understanding this framework before you apply saves you from delays and surprises mid-process.
For a broader perspective on how banks assess different property types as collateral, read our detailed guide on knowing property types for a loan against property.
The Lease Balance Rule: The Single Most Important Factor
In 2026, the foundational rule for lending against WBIIDC land is what lenders informally call the “Loan Tenure + Buffer” calculation. Banks require that your lease does not expire during the life of the loan. Most lenders go further and demand a buffer period of 5 to 10 years beyond the end of the loan tenure.
In practical terms, this means:
- If you want a 15-year loan, the bank will want a residual lease of at least 20 to 25 years
- If you want maximum flexibility, a 30+ year lease balance is generally considered the safe zone
Fresh Allotments: If your unit has been recently allotted land in parks like Rani Nagar or Bishnupur with 90+ years remaining on the lease, accessing a full 15-year mortgage loan is straightforward.
Older Allotments: Units in older parks like Kalyani Phase I, where only 12 to 18 years of lease may remain, face a much tighter situation. Banks may restrict the loan tenure to just 5 to 7 years, which sharply increases the monthly EMI and puts pressure on cash flow.
Use our EMI calculator to model how a shorter tenure affects your monthly outgo before you approach a lender. The difference between a 7-year and a 15-year repayment schedule on the same principal can be substantial.
How to Get WBIIDC’s Permission to Mortgage (NOC Process)
This is the step that catches most first-time borrowers off guard. You cannot simply approach a bank and offer your WBIIDC leasehold plot as collateral. Before any lender will process your application, you must obtain a formal “Permission to Mortgage” from the WBIIDC — essentially a No Objection Certificate that authorises the bank to hold your leasehold rights as security.
In 2026, this process is managed through the Silpasathi portal, West Bengal’s single-window industrial clearance system. The process generally involves three stages:
Stage 1 – Online Application: Submit your application on the Silpasathi portal specifying the name of the lender, the loan amount, and the purpose of borrowing.
Stage 2 – Clearance of Dues: All outstanding lease rent, maintenance charges, and any penalty amounts must be fully paid before the WBIIDC will issue the NOC. Even a small overdue amount can stall the entire process.
Stage 3 – Tripartite Agreement: In most cases, the WBIIDC, you as the lessee, and the bank as the lender will sign a tripartite agreement. This agreement clearly defines each party’s rights — particularly the bank’s right to seek WBIIDC’s cooperation in the event of a loan default. Without this agreement, no lender will disburse funds regardless of how strong your financial profile is.
For a broader understanding of how NOC requirements affect loan processing and what documents you need to keep ready, read our complete guide on No Objection Certificates for loans.
Eligibility Criteria for WBIIDC Property Loans
Because the collateral carries more complexity than freehold property, lenders apply stricter eligibility benchmarks to borrowers seeking loans against leasehold industrial assets. Here is what banks typically look for in 2026:
Business Vintage: Most lenders require a minimum of 3 years of continuous, documented business operation at the same industrial address. Startups or units that have recently shifted may not qualify for a term loan.
Plot Utilisation: The land must be actively used for the industrial purpose mentioned in the DPR submitted to the WBIIDC at the time of allotment. Using a shed for storage, warehousing, or any non-industrial activity without amendment to the DPR is a serious red flag. In the worst cases, it can trigger WBIIDC lease termination, which immediately renders the property ineligible for any loan.
Debt Service Coverage Ratio (DSCR): Lenders want a DSCR of at least 1.5x, meaning your business generates at least one-and-a-half times the amount needed to service its existing and proposed debt. A thin DSCR will result in either a lower sanction or outright rejection.
Credit Score: For established units, a CIBIL score of 750 or above is the expected benchmark. For newer businesses applying for the first time, read our guide on building a first-time CIBIL score to understand what you can do in advance to strengthen your profile.
If your score is currently below the required threshold, do not delay your application indefinitely — start working on it now. Our detailed article on how to improve your CIBIL score outlines a structured approach that has worked for hundreds of business owners across West Bengal.
For MSMEs specifically, your CIBIL MSME Rank (CMR) matters alongside your personal score. Read our guide on what CIBIL Rank and CMR mean for your business to understand how banks read your company’s credit profile.
Documents Required for a WBIIDC Leasehold Property Loan
The documentation checklist for leasehold industrial property loans is longer and more specific than for standard freehold loans. Preparing these in advance prevents delays at the processing stage.
Lease Deed: The original, registered lease deed executed between you and the WBIIDC. This is the foundational document — without it, nothing else can proceed.
Possession Certificate: Issued by the WBIIDC at the time of physical handover of the plot or shed. Banks need this to confirm you are the rightful occupant.
Lease Rent Receipts: Proof of annual lease rent payments, current to the date of application. Any gap in payment history weakens your case significantly.
WBIIDC-Sanctioned Building Plan: The building or shed plan must be approved by the WBIIDC’s own technical wing — not merely by the local Gram Panchayat or municipality. An unsanctioned structure on the plot can hold up the entire valuation process.
Mortgage NOC from WBIIDC: The permission letter obtained through the Silpasathi portal, as described above.
Udyam Registration Certificate: Your current Udyam registration, with the industrial address matching the plot details in the lease deed. For guidance on obtaining or updating this, read our guide on documents required for Udyam registration online.
Business Financial Documents: ITR filings for the last 3 years, audited balance sheets, GST returns, and bank statements. Banks will assess your repayment capacity alongside the collateral quality. Our guide on preparing financial documents for a loan application covers this in detail.
For the complete checklist applicable to all property-backed loans, refer to our documents required for mortgage loans.
Understanding Valuation on Leasehold Industrial Property
This is where many factory owners are surprised. Leasehold land is consistently valued lower than equivalent freehold land because the bank’s ability to liquidate the asset — if needed — is restricted by the WBIIDC’s transfer approval requirement.
In addition, banks deduct the “unearned increase” or transfer fees payable to the WBIIDC when calculating net realisable value. The WBIIDC charges a percentage of the appreciated market value when a leasehold plot is transferred to a new lessee. This cost gets factored into the bank’s valuation from the very beginning.
As a result, the typical Loan-to-Value (LTV) ratio for leasehold industrial property in West Bengal sits between 40% and 55% — noticeably lower than the 60% to 70% that residential property typically commands. To understand how LTV is determined and how to maximise it for your specific situation, read our detailed explainer on LTV in loan against property.
To bridge the gap between what the term loan covers and what your business actually needs, many industrial units in West Bengal combine a term LAP with a separate cash credit facility for day-to-day working capital or an overdraft against property. This two-product approach allows the business to manage both long-term capital needs and short-term cash flow without over-leveraging the single asset.
For a thorough comparison of these two structures, read our article on cash credit vs overdraft.
What to Do If Your Lease Balance Is Running Short
If your WBIIDC lease has fewer than 30 years remaining, your options for a long-tenure term loan are genuinely limited — but you are not without solutions.
Apply for Lease Renewal Early: The WBIIDC allows lease renewal well before the expiry date. Initiating the renewal process and obtaining even a letter of intent from the corporation can sometimes satisfy lenders who are otherwise reluctant to lend against a short-balance lease. A renewed or near-renewed lease dramatically improves your negotiating position.
Opt for an Overdraft Facility Instead of a Term Loan: An overdraft limit is renewed annually and does not lock the bank into a 15-year commitment against a depreciating lease balance. Banks are often more flexible about short lease balances when the product is an OD rather than a long-tenure LAP. Read our guide on overdraft loan for business to understand when this makes more sense than a term structure.
Request a Top-Up on an Existing Facility: If you already have a loan relationship with a bank against the same property, a top-up loan goes through a faster internal legal review. The bank has already assessed the lease, executed the tripartite agreement, and conducted the valuation. A top-up is processed against that existing framework, saving significant time and paperwork. Read our analysis on top-up vs refinance to decide which route suits your situation.
Consider a Machinery Loan Instead: For specific capital expenditure needs — new equipment, production line upgrades — a machinery loan secured against the equipment itself rather than the land may be more practical for units with constrained lease balances. Read our guide on machinery loan vs term loan from a banker’s perspective to evaluate this option carefully.
Interest Rates and Cost Benchmarks for Industrial LAP in West Bengal
Leasehold property loans carry a slightly higher interest rate than equivalent freehold LAP, reflecting the additional complexity of the collateral. In 2026, you can expect rates to be 50 to 100 basis points higher than what you might see quoted for residential or commercial freehold property loans.
For a complete picture of what rates are available across banks and NBFCs in West Bengal right now, read our regularly updated guide on lowest LAP interest rates in West Bengal for 2026. Understanding where the rate floor sits helps you negotiate from a position of knowledge rather than accepting the first offer on the table.
You should also be aware of the distinction between fixed and floating rate structures for this type of borrowing. Read our article on fixed vs floating rates for loan against property before finalising your loan structure with the lender.
NBFC vs Bank: Which Lender Is Better for Leasehold Industrial Property?
Banks — particularly PSU banks like SBI, PNB, and Bank of Baroda — are generally more familiar with WBIIDC leasehold structures and have established internal processes for handling tripartite agreements. However, they tend to be stricter on the lease balance requirement and DSCR benchmarks.
NBFCs, on the other hand, are often more flexible on eligibility criteria but may charge higher rates and apply a tighter LTV on leasehold assets. For a structured comparison of both approaches, read NBFC vs bank loan against property — 6 smart advantages.
For project-level financing needs — if you are expanding production capacity, building a new shed, or setting up a new unit inside the park — a project loan through a structured lender may be more appropriate than a standard LAP. Read our complete guide on project loan funding for manufacturing units in West Bengal to understand how this financing structure works.
Industrial Park Rules: Frequently Asked Questions
Can I get a loan against a WBIIDC plot without a building on it?
It is difficult. Most lenders want a constructed, operational structure on the land as evidence of active business use. A bare plot with no construction is rarely accepted as standalone collateral under current industrial park lending norms.
What happens to my loan if the WBIIDC terminates my lease?
Lease termination due to misuse, non-payment of dues, or violation of allotment conditions would be treated as a collateral failure by the lender. The bank would have grounds to declare the loan an NPA and seek recovery through other means. This is why maintaining your lease in good standing is non-negotiable.
Can a partnership firm or Pvt Ltd company apply for this loan?
Yes. Both structures are acceptable. The company’s CIBIL MSME Rank and financial statements will be evaluated alongside the leasehold collateral.
How long does the full process take?
Due to the WBIIDC NOC process and the additional legal checks required, expect the end-to-end timeline to be longer than a standard freehold LAP. From application to disbursement, a realistic estimate is 45 to 75 days. For general guidance on LAP timelines, read our article on processing time for loan against property.
Final Word for Industrial Park Unit Owners
The WBIIDC leasehold framework is not a barrier to borrowing — it is a framework that, once understood, can be navigated effectively. Factory owners across Kalyani, Falta, Howrah, Nadia, and South 24 Parganas are successfully using their industrial plots as financial levers every year. The difference between those who succeed and those who face rejections almost always comes down to preparation: lease dues cleared, NOC obtained, documents in order, and credit profile maintained.
If your lease balance is strong and your business fundamentals are sound, your WBIIDC property can serve as the foundation for significant long-term capital — at rates far lower than any unsecured business loan alternative.
Contact us today for a specific consultation on leasehold mortgage eligibility, or explore our financial loan services to see the full range of funding structures available for industrial property owners in West Bengal.
External References for Further Reading:
- WBIIDC Official Website — Lease norms, allotment rules, and renewal procedures for West Bengal industrial parks
- Silpasathi Portal – Government of West Bengal — Single-window clearance portal for industrial NOC and mortgage permissions
- RBI Master Circular on Loans and Advances — Regulatory framework governing secured lending against leasehold assets in India
- Udyam Registration Portal — For updating or verifying MSME registration linked to industrial addresses
