Finance the shed, the racking and the land it stands on.
Funding for warehousing assets across the range: a single godown behind a trading business, a built-to-suit facility on a logistics corridor, a cold store, or a multi-tenant warehousing park.
Three quite different lending propositions
Warehousing files divide into three types, and they underwrite very differently. A godown attached to your own trading operation is assessed on your business cash flow. A built-to-suit facility with a signed lease from a corporate tenant is assessed largely on that lease. A speculative multi-tenant park is assessed as project finance, with the sponsor's track record carrying most of the weight.
For leased assets, the tenant's credit quality does more for your pricing than anything about the building. A registered nine-year lease with a listed logistics operator or an e-commerce major, with a lock-in and an escalation clause, will attract materially better terms than the same shed let to a series of small local traders.
Cold storage is a category of its own. The refrigeration plant is a large share of project cost, is technically specialised and depreciates faster than the structure, so lenders apply a lower funding percentage to it and look carefully at power reliability, backup and the operator's experience. Certain agri and food-processing schemes carry subsidy components that materially change the arithmetic.
Indicative pricing in 2026
Pre-leased warehousing is one of the better-priced commercial asset classes. Speculative and specialised assets sit at the wider end.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Warehousing files: what decides the outcome
Land-use conversion on the plot
Warehousing is frequently built on land that is still classified agricultural in revenue records, particularly on the outskirts of Kolkata and along the highway corridors. Without a conversion order the asset is unfundable by banks, whatever has already been built on it. This is the most common single obstruction on godown files.
The lease is the security
On a pre-leased asset, lenders read the lease as closely as the title: registered or not, lock-in period, escalation, termination rights, security deposit and whether rent is assigned to the lender. An unregistered lease with a three-month exit clause supports very little borrowing, however good the tenant's name.
Racking, MHE and plant are separate assets
Racking systems, material-handling equipment and refrigeration plant are often a third or more of total project cost, and they are funded as plant and machinery rather than as property — different LTV, shorter tenure, sometimes a different lender. Splitting the requirement correctly from the outset avoids a mid-project funding gap.
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 & project
- Title deed, mutation and 30-year title chain
- Land-use conversion order and sanctioned plan
- Registered lease deeds and tenant profiles, if pre-leased
- Cost estimate and BOQ for construction or expansion
- Fire NOC, pollution consent, FSSAI licence where applicable
- Machinery quotations for racking, MHE or refrigeration
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 Warehouse & Godown Loan.
Yes, and it is one of the stronger cases you can present. A registered lease with a creditworthy tenant, a lock-in and an escalation clause gives the lender a visible repayment source.
Depending on how much you need, either a mortgage or Lease Rental Discounting may be the better instrument. LRD typically prices sharper but sizes the loan off the rent stream rather than the property value.
Yes. The civil structure is funded like any warehouse, but the refrigeration plant is assessed as plant and machinery — lower funding percentage, shorter tenure, and close attention to power supply, backup capacity and the operator's technical experience.
Cold chain and food-processing projects also attract subsidy support under central and state schemes, which can change the funding structure materially. Worth checking against our government schemes desk before finalising.
Not by banks, until the land use is formally converted. This is the most frequent reason godown files are declined in and around Kolkata.
The route is to apply for conversion, obtain the order, and then approach lenders. A few NBFCs will lend against realisable value in the interim, but at a substantially lower LTV and higher rate.
They can be funded, but usually as a separate component or a separate facility, because plant and machinery carries different norms from property — typically 70–80% funding over five to seven years.
See machinery and equipment finance. We normally structure the property and equipment components together so there is no gap between the shed being ready and it being operational.
On a built asset with clear title and converted land use, 55–70% funding over up to fifteen years is the normal range. Pre-leased Grade-A assets reach the top of that band.
Speculative development without pre-leasing, or assets with documentation gaps, come in lower on both counts. The lease and the land-use order move these numbers more than anything else in the file.
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