Fund the factory — land, shed and the plant inside it.
Purchase and mortgage funding for industrial property: freehold factory land, sheds in notified industrial estates, standalone manufacturing units and workshops — structured alongside the machinery finance the unit needs to run.
Why industrial assets attract the deepest haircut
An industrial property is often purpose-built for one occupier and one process. That makes it valuable to you and difficult for anyone else to buy quickly, which is exactly what lenders price for. Funding of 45–65% is normal, against 55–70% on generic commercial space.
Compliance is treated as part of the security. Factory licence, pollution control board consent to operate, fire safety clearance, electrical load sanction and, where relevant, boiler and explosives approvals are all examined. A unit operating without current consent is a contingent liability, and credit teams treat it as one.
Industrial estate allotments from state development corporations are common in West Bengal and elsewhere, and they are leasehold. Transfer and mortgage both need the corporation's permission, the lease has to have adequate residual term relative to your loan tenure, and the allotment conditions on utilisation have to have been met. None of it is difficult; all of it takes time if discovered late.
Indicative pricing in 2026
Manufacturing borrowers with clean compliance records and audited financials price well, and several government-linked schemes can reduce the effective cost further.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Industrial property: the diligence that actually matters
Residual lease term against loan tenure
On an estate allotment, lenders want the unexpired lease to exceed the loan tenure by a comfortable margin — often the tenure plus five to ten years. A fifty-year lease with eleven years left will not support a fifteen-year loan, and renewal is a matter for the corporation, not for you.
Environmental consent and legacy liability
For a purchase, the buyer can inherit environmental obligations attached to the site. Lenders look at the consent history, the category of the industry and any pending notices. On a red-category process or a site with a contamination history, expect a lower funding percentage and an environmental condition in the sanction.
Property and machinery in a single plan
A shed without machinery earns nothing, and machinery funding runs on shorter tenures and different LTVs from property. Files arranged property-first and machinery-later routinely discover that FOIR is exhausted by the time the equipment is needed. Both components should be modelled together from the start.
Documents required
Incomplete files cause most multi-week delays. We assemble the full set upfront, in the order credit teams read it.
KYC & constitution
- PAN & Aadhaar of all promoters / partners / directors
- Certificate of incorporation, MOA-AOA or partnership deed
- Board resolution or partners' authority letter
- GST registration & trade licence
Financials
- 3 years ITR with computation of income
- Audited balance sheet, P&L and schedules
- 12 months' bank statements of all operating accounts
- GST returns (GSTR-3B) for the last 12 months
- Existing loan sanction letters & repayment track record
Property & compliance
- Title deed or allotment and lease deed with the corporation
- Land-use conversion order, mutation and site plan
- Sanctioned factory building plan & occupancy certificate
- Factory licence, pollution control consent to operate, fire NOC
- Electricity load sanction; boiler / explosives licence if applicable
- Machinery invoices and valuation for existing plant
How an industrial file is put together
Asset and compliance review
Title, lease residue, land use and every operating consent are checked before the file is positioned anywhere.
Property plus machinery modelling
We size both components together and test the combined DSCR, so the equipment is not stranded after the shed is funded.
Scheme overlay
Where CGTMSE cover, CLCSS subsidy or a state industrial incentive applies, it is built into the structure rather than bolted on afterwards.
Placement, valuation, disbursal
Lenders with genuine manufacturing appetite are approached in parallel; technical and legal run concurrently to compress the timeline.
Related facilities & deep-dive guides
Every facility below is placed through the same 80+ lender panel. The long-form guides carry the working numbers, worked examples and lender-by-lender detail.
Frequently Asked Questions
The questions our advisory desk is asked most often about Industrial Property Loan.
Because resale is narrow. A purpose-built shed suits a limited set of buyers, and in a recovery scenario that takes far longer to sell than a generic office or shop.
Expect 45–65% against industrial property. The number improves where the unit is generic in layout, well located in an established industrial belt, and fully compliant.
Yes. These are usually leasehold allotments, so the corporation's permission is needed both for the transfer to you and for creating the mortgage, and the unexpired lease term must comfortably exceed your loan tenure.
The paperwork is routine for lenders who handle estate allotments regularly and slow for those who do not, which is largely what determines your timeline.
They are normally two components, sometimes with two lenders, because machinery carries higher LTV over a shorter tenure. What matters is that both are planned together.
See machinery and equipment finance. Sizing the property loan without the machinery in view is the most common way manufacturers end up with a shed they cannot equip.
Several can. CGTMSE cover removes the need for third-party collateral on eligible MSME facilities, CLCSS supports technology upgradation, and state industrial policies offer capital and interest subsidies in designated areas.
These are layered onto a commercial facility rather than replacing it. Our government and PSU schemes desk maps what your unit actually qualifies for.
Expect the file to stop. An expired consent to operate is treated as an active compliance risk, and most credit teams will not disburse against a unit that is technically operating without authorisation.
Renewal is usually straightforward but takes weeks. Start it before the loan application rather than in response to the lender's query.
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