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Manufacturing businesses, whether large or small, often require funding for business growth, buy raw material, meet working capital requirements and many other. Though there are several sources of business finance manufacturing companies can avail, a business loan for manufacturers is often the most preferred as it comes with features tailored for the manufacturing sector. There are banks and NBFCs that offer term loans for manufacturing business that enable them to meet diverse business needs.

Additionally, based on the type of loan, there are tax benefits of business loans that can be availed. On that note, let’s learn more about business loan for manufacturing in India.

What is a manufacturing business loan?

Manufacturing firms are capital intensive businesses. They have high headcounts, require large production spaces, need to buy or rent machinery and invest in technology, and more. Keeping the sector’s unique requirements in mind, many banks and NBFCs offer a manufacturing business loan to eligible companies.

These manufacturing business loans can be secured (collateral loans) or unsecured (collateral-free loans) depending on the loan amount, the credit score and creditworthiness of the borrower/firm, the financials of the business, and other factors. As a MSME or start-up requiring loans for manufacturing firm, also consider checking startup business loans and government loans for start-ups which often have lenient eligibility and documentation requirements.

Business Loans through Tata nexarc is a unique offering, where you can avail unsecured business loans up to ₹50 lakhs. Multiple lenders, one application. Explore now.

Different banks loan for manufacturing business

Leading private and public sector banks offer loans to manufacturers. These are usually term loans, borrowed at a certain interest rate and for a tenure. Loan repayment is usually done through pre-defined EMIs.

Other than that, based on specific requirements, manufacturers can alternatively opt for working capital loans, equipment finance, or any other long term loans that meets their business needs.

HDFC Bank Manufacturer Loan – Business Loan for Manufacturers

The Business Growth Loan for Manufacturers is a unique business loan offering by HDFC Bank. These are collateral-free loans that make it convenient for small businesses to avail credit facility when required. These loans can be used to meet daily financial needs or business expansion, and can be applied for online or by visiting a bank branch.

Loan amount Up to ₹40 lakhs collateral-free loans

Up to ₹50 lakhs in selected locations

Tenure 12 – 48 months, flexible repayment options through pre-determined EMIs
Overdraft ₹5 – ₹15 lakhs unsecured dropline OD facility (separate current account set as per limit; customers to pay interest only on funds utilised)
Eligibility & Documentation Loan repayment history, banking transactions with the bank, creditworthiness and credit score, and other basic eligibility requirements
Disbursal Quick loan disbursal time (first remember to check eligibility)

*For more information on HDFC Business Loan for Manufacturers, visit their website:

We next take a look at the popular NBFCs offering business loan for manufacturers.

Bajaj Finserv Business Loan for Manufacturers

Bajaj Finserv offers business loans to companies in the manufacturing sector. These are unsecure business loans to manufacturers, with quick processing time and nominal documentation. To avail this loan, the borrower must be an Indian citizen.

Loan amount Up to ₹50 lakhs collateral-free loans to meet working capital needs
Tenure Up to 96 months, flexible repayment options
Features Online application and quick approval, doorstep facility for loan processing formalities, online customer portal to self-manage account, get funds with 48 hours of approval (T&C apply)
Eligibility & Documentation Nominal documents such as 685+ credit score (i.e., your credit score report), 3+ years vintage, applicant age between 24 and 70 years at the time of loan maturity
Interest rate 9.75% – 30% per annum

Processing fees (up to 3.54% of loan amount) + stamp duty + documentation charges + more

*To learn more about Bajaj Finserv manufacturing loan, visit their website:

Bajaj Markets Business Loan for Manufacturers

Bajaj Finserv Markets is another trusted lender you can consider for loans for manufacturing business. These loans can be availed for business expansion, infrastructure and technology upgrade, new product development, production growth or any other. These are collateral-free loans for manufacturing business with easy repayment options.

Loan amount Up to ₹50 lakhs collateral free loans
Tenure 12 – 72 months, flexible loan repayment options
Features Doorstep delivery for verification/consultation/query resolution, online loan application, quick disbursal of funds within 24 hours after approval (T&C apply), no collateral or guarantor required
Eligibility & Documentation Age – 26 – 66 years (at the time of loan maturity)

Business Loan

3+ years of business operations

1+ years ITR + all other basic KYC, business and financial documents required for business loan application

Interest rate 12% p.a. onwards

Processing fees (3.99% of the loan amount) + convenience fees and any other

Foreclosure charge (4%)

*Learn more about manufacturing loan by Bajaj Markets on their website:

Lendingkart Business Loan for Manufacturers

Lendingkart loans for manufacturing business is designed on the premise that manufacturing firms have diverse requirements, with different business cash flow cycles. As such, they offer flexible business loans for manufacturers based on the nature of business and the cash flow cycles.

These loans can be long, mid and short term business loans for manufacturing, certain and uncertain. Some of purpose and features of related loans are listed below:

  • Raw material purchase: Continuous, short term loans, interest based, and to be paid out of cash flow
  • Purchase/rent of machinery: One-time, long term, EMI based (for purchase), continuous interest based payable out of cash flow (for rent)
  • Purchase/rent of manufacturing setup: One-time, long term, EMI based (for purchase), ongoing interest based payable out of cash flow and profits (for rent)

*For more information on Lendingkart manufacturing loans please visit:

For purchase of machinery for business in general, also consider looking at machinery loans structured primary for the buying and renting of machinery for business.

IIFL Finance Manufacturer Loan

Apart IIFL Finance business loans, manufacturing firms can also avail funds for their business.

Loan amount Up to ₹30 lakhs no-collateral loans
Features Minimum documentation, online application, quick disbursal
Eligibility 6+ months in operations at the time of loan application

₹90,000+ minimum turnover in the last 3 months at the time of application

Location of business cannot be in a negative location list

Business does not fall under restricted business

NGOs, charitable organisations, trusts – not eligible

Documentation KYC documents

6-12 months bank statements (or individual and company), PAN card, GST registration

Proof of business registration, deed copy or similar

Disbursal Within 48 hours after loan approval (T&C apply)

*For more details, visit IIFL Finance website:

Government loan for manufacturing business

Before closing our discussion, let’s take a look at some of the popular central govt loan scheme for manufacturing business. The key point to understand here is that most of these schemes are applicable to businesses from diverse sectors and not necessarily exclusive to the manufacturing industry. Some popular government loan scheme for manufacturers are:

Name of loan scheme Features
Pradhan Mantri MUDRA Yojana (PMMY) Mudra loan eligibility is open to all businesses in manufacturing sector e.g., small manufacturing units, food processors, small industries etc.

Loan amount – ₹50, 000 to ₹10 lakhs

Credit Guarantee Scheme (CGTMSE) Eligibility – New and existing businesses in manufacturing

Loan amount – Up to ₹2 crores

CGTMSE scheme provides credit cover based on the loan amount and type of business, e.g., 50% for retail trade

Stand-Up India Eligibility – All manufacturing units, run by women entrepreneurs or SC/ST (at least 51% shareholding)

Loan amount – ₹10 lakhs – ₹1 crore

Stand-Up India scheme offers the lowest interest rate


As a small business owner, the first step to avail funds for your business is to understand the different types of business finance available to you. This will help you evaluate options better and select the best option for your business.

Sohini Banerjee

Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.