Industrial property finance covers two directions of the same asset class: buying factories, sheds and manufacturing units — for expansion, relocation or a first owned facility — and mortgaging units you already own to release capital. Both are specialist lending, priced and structured differently from ordinary commercial property.
Purchases fund at 55–65% of value for compliant, ready units (lower for older or lease-hold estate properties), with lenders scrutinising land use, factory license transferability, pollution-control consents and structural compliance against sanctioned plans. Mortgage-based deals on owned units carry more conservative LTVs of 40–60%, reflecting industrial resale realities.
Location intelligence matters enormously here — appetite differs between organised industrial parks (where lease-hold mortgage NOCs are routine) and legacy belts like Howrah or Asansol (where structural deviations and old titles need careful handling). CreditCares routes each file to panel lenders with proven appetite for that estate type and geography.
Industrial deals we structure
Factory purchase
Ready manufacturing units in industrial parks and estates — for expansion or relocation.
Shed purchase
Standard-design sheds for fabrication, engineering, packaging and warehousing-adjacent use.
Mortgage for capital
Loan against your existing unit for working capital, machinery or consolidation.
Estate lease-hold deals
WBIDC/industrial-estate lease-hold properties financed with authority NOC.
Unit + machinery bundles
Combined property-plus-plant funding for turnkey capacity additions.
Distress & auction purchases
Bank-auction industrial assets bought with pre-arranged funding — timelines are brutal; preparation wins.
Interest rates & terms (2026, indicative)
| Lender type | Interest rate | Typical LTV / funding |
|---|---|---|
| Public sector banks | 10.00% – 11.75% p.a. | Purchase 55–65% / mortgage 40–55% |
| Private banks | 10.50% – 12.50% p.a. | Purchase to 65% / mortgage to 60% |
| NBFCs | 11.50% – 13.00% p.a. | Flexible programs, faster closure |
Rates are indicative market ranges for mid-2026 and vary by lender policy, credit profile and security. Final pricing rests with the sanctioning bank/NBFC.
Eligibility (typical)
- Manufacturing/business vintage 3+ years with financials & GST
- Unit on industrial-use land (freehold or mortgage-able leasehold)
- Factory & trade licenses, pollution consents current or transferable
- Structure compliant with sanctioned plan (deviations cut LTV)
- Margin 35–45% for purchases
- Acceptable CIBIL/CMR of entity and promoters
Documents required
- Title/lease deed chain, mutation, land-use & conversion papers
- Estate authority NOC (for lease-hold industrial estates)
- Factory license, trade license, PCB consents (CTE/CTO)
- Sanctioned plan & completion papers; machinery layout
- 3 years' audited financials, ITRs, GST returns
- 12 months' banking; existing facility sanction letters
Industrial Loan EMI Calculator
Indicative only — final rate and eligibility are decided by the lender based on your profile and security.
How CreditCares gets you sanctioned faster
Profile & lender match
We map your financials and security to the lenders — from our 80+ bank & NBFC panel — most likely to approve on the best terms.
Bank-ready file
Financials, projections, property/KYC papers structured exactly the way credit teams want to see them.
Negotiation & follow-up
We place the file with multiple lenders, negotiate rate, LTV and fees, and keep approvals moving.
Sanction & disbursal
Terms finalised, sanction issued, funds disbursed — tracked end to end by one team.
Frequently asked questions
Can I buy a factory in a WBIDC or government industrial estate on loan?
Yes — lease-hold estate units are financeable when the lease has adequate residual tenure and the estate authority issues a mortgage NOC, which most do as standard procedure. We verify transferability and NOC feasibility before you negotiate the purchase.
Why did the bank value my unit far below market?
Industrial surveyors value only the sanctioned, compliant structure and apply industrial-grade depreciation. Unapproved mezzanines, extensions or use-deviations get excluded entirely — in older belts this routinely cuts mortgageable value 25–40%. Regularisation or joint collateral are the standard fixes.
Is buying a bank-auction factory financeable?
Yes, but SARFAESI auction timelines (25% on the spot, balance in 15–90 days) demand pre-arranged sanction. We pre-underwrite your profile against the specific asset before you bid, so the funding is ready when the hammer falls.
Can I bundle machinery into the property loan?
Often, yes — several lenders structure composite facilities covering unit purchase plus plant and machinery, or pair the property loan with a parallel machinery loan. A single blended structure usually beats two separate applications on both pricing and processing.
Self-used unit or leased-out unit — which raises more money?
A unit leased to a strong industrial tenant can be underwritten on rental cash flow (LRD-style), often beating the flat 40–60% mortgage LTV. Self-used units rely on your business income. If you own multiple units, mixing structures across them can maximise the total raise.
Related loan products
Loan Against Industrial Property (mortgage)
View →Machinery & Equipment Loan
View →Pharmaceutical Manufacturing Loan
View →Loan Against Commercial Property — hub
View →Get the right lender, not just any lender
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Get my free eligibility check Call +91 98300 38870Disclaimer: CreditCares is a private loan consultancy / DSA — not a bank, NBFC or government body. Interest rates, LTV and eligibility parameters shown are indicative market ranges for 2026 and change with lender policy. Loan approval, pricing and terms rest solely with the sanctioning bank/NBFC. Tax notes are general summaries — consult a Chartered Accountant before claiming deductions.