Warehousing has gone from lending's neglected corner to one of its most sought-after asset classes. E-commerce fulfilment, 3PL logistics, FMCG distribution and cold-chain expansion have pushed quality storage into chronic short supply — and lenders have followed the demand. A warehouse and godown loan today funds purchase, construction or refinance of storage assets at terms that were unthinkable a decade ago.
Underwriting turns on usability and tenancy. A compliant warehouse — proper approvals, dock access, power, fire clearance — leased to a strong 3PL, e-commerce or FMCG tenant can be financed on rental cash flows (LRD) at the segment's best pricing. Self-used godowns for traders and manufacturers underwrite on business financials with standard commercial LTVs of 55–70%.
From market-area godowns in Howrah and Dankuni's logistics belt to modern Grade-A boxes on NH corridors, CreditCares structures warehousing deals across the spectrum — purchase, build-to-suit construction, refinance and rental discounting.
Warehouse deals we finance
Purchase
Buying existing godowns, sheds and Grade-A boxes for self-use or investment.
Build-to-suit construction
Stage-wise finance to build for a committed tenant — the strongest file in the segment.
Cold storage
Temperature-controlled facilities for food, dairy and pharma supply chains, incl. subsidy-linked schemes.
Logistics parks
Multi-tenant parks on highway corridors with structured project debt.
Refinance & top-up
Resetting old warehouse loans to today's keener pricing and pulling out equity.
Lease rental discounting
Converting rent from e-commerce/3PL tenants into upfront capital.
Interest rates & terms (2026, indicative)
| Lender type | Interest rate | Typical LTV / funding |
|---|---|---|
| Public sector banks | 9.50% – 11.50% p.a. | 55% – 65% |
| Private banks | 10.00% – 12.50% p.a. | Up to 70%; LRD programs |
| NBFCs | 11.00% – 13.00% p.a. | Construction & flexible structures |
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)
- Land with appropriate zoning/warehouse use permission
- Structure with sanctioned plan, fire NOC and completion papers
- For LRD: registered lease with credible tenant and lock-in
- Business vintage 3+ years for self-use borrowers
- Margin 30–45% depending on product and asset grade
- Acceptable bureau record of entity and promoters
Documents required
- Title deed chain, mutation, conversion & tax receipts
- Sanctioned plan, completion certificate, fire & electrical clearances
- Lease deed / LOI with tenant (for leased assets)
- 3 years' financials & ITRs, GST returns
- 12 months' banking; existing loan sanction letters
- Project cost sheet & approvals (for construction deals)
Warehouse 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
Why do lenders love leased warehouses so much?
A registered lease to an e-commerce, 3PL or FMCG tenant converts the asset into a predictable cash-flow machine — so lenders underwrite the rent, not just your business, funding 75–90% of discounted lease rentals at sharp pricing through LRD structures.
Can I get finance to build a warehouse for a tenant who's given an LOI?
Yes — build-to-suit construction with a credible tenant LOI is among the most fundable structures in commercial lending. Disbursement is stage-wise during the build, converting to LRD on lease commencement.
Do cold storages qualify for any subsidy-linked loans?
Yes — cold-chain projects can access schemes such as MoFPI cold-chain grants, AIF (Agriculture Infrastructure Fund) interest subvention up to ₹2 Cr, and NABARD-linked refinance depending on the project. We layer eligible subsidies into the funding structure where the project qualifies.
Is an old market-area godown with basic construction financeable?
Usually yes at adjusted LTVs, provided title and use permission are clear. Valuation reflects construction grade — a basic shed values on land-plus-structure, while Grade-A boxes value on income. Both routes work; pricing differs.
What LTV can I expect on a warehouse purchase?
Self-use purchases run 55–65% at banks and up to 70% at NBFCs. Pre-leased assets underwritten as LRD often achieve higher effective leverage because eligibility is computed from rental cash flow rather than a flat LTV grid.
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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.