Industrial Plant & Machinery

Manufacturing Plant & Machinery Loan: Industrial Capex & Working Capital

Industrial production enterprises require robust capital to procure precision machinery, construct manufacturing sheds, install electrical transformer infrastructure, and maintain healthy raw material buffer stocks. We structure syndicated term loans, machinery lines, and working capital limits with leading commercial banks.

Max Sanction

Up to ₹25 Crores

Interest Rate

9.25% - 12.50% p.a.

Repayment Tenure

3 to 10 Years

Processing Time

7 - 14 Working Days

Itemized Capex Financing Breakdown

Core Production Machinery 50%

CNC machines, plastic injection moulding, automated packaging lines, stamping presses, and robotic tooling.

Industrial Shed & Factory Civil Work 25%

PEB structure construction, reinforced flooring for heavy machinery, cleanrooms, and loading docks.

Electrical & Utility Infrastructure 12%

Dedicated HT transformer, high-capacity diesel generator sets, air compressors, and effluent treatment (ETP).

Raw Material Working Capital Runway 8%

Initial buffer stock procurement, chemical reagents, metals, polymers, and packaging supply.

Testing Labs & Quality Assurance 5%

Spectrometers, tensile strength testers, ISO certification setup, and calibration tools.

Applicant Eligibility Criteria

  • MSME manufacturing units: Sole Proprietorship, Partnership, LLP, or Private Limited Company.
  • Technically viable project with demonstrated market off-take or existing supply contracts.
  • Industrial plot in approved industrial zone (KIADB, TSIIC, MIDC, GIDC, SIPCOT, etc.) or owned land.
  • Promoters with relevant technical or industrial manufacturing background.
  • Clean credit history and debt-service coverage ratio (DSCR) exceeding 1.4x.

Frequently Asked Questions

Can the bank issue a Letter of Credit (LC) for importing machinery from abroad?

Yes. We structure trade finance facilities, including Foreign Letters of Credit (FLC) and Buyer's Credit, enabling you to import precision machinery from Germany, Japan, Taiwan, or China with favorable credit terms.

Can manufacturing loans be integrated with government capital subsidies?

Yes. Eligible micro and small manufacturing units can leverage Central Government schemes like CLCSS and state industrial policy subsidies (capital investment subsidy, stamp duty exemption, and power tariff subsidies).

What is the typical repayment tenure for machinery loans?

Machinery term loans are structured with tenures of 5 to 10 years, matching the economic depreciation lifespan of the production assets.

Is a factory visit or site inspection required before loan sanction?

Yes. The lending bank's technical officer or empanelled engineer conducts a physical inspection of the proposed industrial premises and verifies machine supplier credentials.