Business Loan For Manufacturers

Manufacturers are the backbone of the Indian economy as their businesses turn raw materials into usable products for the end customers. The Indian economy relies on them to manufacture products to fulfil the basic needs of people to ensure they can raise their standard of living over time.

However, the manufacturing process is capital-heavy and requires high and constant funds to buy or manage machinery and equipment. The best way for manufacturers to raise adequate capital is through specialised business loans for manufacturers.

IIFL Finance’s business loans for manufacturers is a specialised loan product targeted toward manufacturers' capital needs and provides a way to raise immediate capital for their business. The instant business loan for manufacturers come with attractive interest rates where they can raise a maximum amount of Rs 30 lakh within 48 hours.

Manufacturer Loan EMI Calculator

Calculate your EMI and choose the most suitable product for you

Business Loan For Manufactures Features and Benefits

Manufacturing business varies as numerous products need manufacturing across various business segments. The capital needs can also vary depending on the nature of the manufacturing business. However, a comprehensive manufacturer loan can benefit manufacturers through the following features and benefits:

Immediate Capital

Manufacturers can raise immediate capital of Rs 50 lakh maximum through business loans for manufacturers.

Minimal Documentation

A manufacturer loan requires submitting only a few necessary documents.

Quick Disbursal

The business loans for manufacturers are disbursed into the bank accounts within 48 hours of application.

No Collateral

No need to pledge an asset as collateral when applying for manufacturing loans.

Eligibility Criteria For Business Loan For Manufacturers

Similar to other business loans, business loans for manufacturers also come with a set of eligibility criteria the manufacturers must fulfil. Here are the eligibility criteria for a loan for a manufacturing unit:

  1. Established businesses operating for more than six months at the time of application.

  2. Minimum turnover of Rs 90,000 in the last three months from the time of application.

  3. The business does not fall under any category or list of blacklisted/excluded businesses.

  4. The office/business location is not on the negative location list.

  5. Charitable organisations, NGOs, and trusts are not eligible for a business loan.

Documents Required For Business Loan For Manufacturers

Every loan for a manufacturing unit requires completing KYC verification, where the borrowers must submit a few basic documents related to the manufacturing business. Here are the documents required for a loan for a manufacturing business:

KYC documents – Identity proof and address proof of the borrower and all co-borrowers

PAN Card of the borrower and all co-borrowers

Last (6-12 Months) months bank statement of main operative business account

Signed copy of standard terms (term loan facility)

Additional document(s) for credit assessment and processing the loan request

GST Registration

Previous 12 months’ bank statements

Proof of business registration

PAN Card and Aadhar Card copy of the Proprietor(s)

Deed copy and company PAN Card copy in the case of partnerships

How To Avail Business Loan For Manufacturers?

Here is how you can apply for a business loan for manufacturers with IIFL Finance:

  • Visit IIFL Finance’s website and navigate to the business loan section.

  • Click “Apply Now” and fill in the business loan for manufacturers application form.

  • Submit all the relevant documents needed for completing KYC.

  • Click the “Submit” button to complete the loan application process.

  • After review, IIFL Finance will approve the loan for a manufacturing unit in under 30 minutes and disburse the amount within 48 hours into the borrower’s bank account.

Loans Matched with the Type of Manufacturing Business

Every type of manufacturing business has a different setup regarding the nature of raw materials, machinery, needed staff, etc. Hence, the capital needed for manufacturing units for the manufacturing business also differs.

IIFL Finance’s business loans for manufacturers cater to capital needs ideally, irrespective of the type of manufacturing business. At IIFL Finance, you can avail of business loans with a range of tenure to ensure the loan amount matches the type of the existing manufacturing business to ensure smooth operations.

Business Loan for manufacturers FAQs

You can get manufacturing equipment loans by visiting the selected lender's website, filling out the loan application form, and submitting the relevant documents.

You can calculate the EMIs of loan for a manufacturing unit through the EMI calculator on IIFL’s website.

Yes, you can use the loan amount from IIFL Finance’s business loan for manufacturers to buy inventory.

Yes, there are certain other charges, such as loan processing charges, prepayment charges, foreclosure charges, etc. These charges are listed on the website of IIFL Finance for utmost transparency.

You can increase the loan eligibility to fund the manufacturing business by avoiding defaults on your financial liabilities, lowering credit card use, increasing your credit score, and avoiding taking loans from multiple lenders.

Manufacturing businesses can get funding by availing of a business loan, personal loan, gold loan, loan against securities, term loans, etc. However, a specialised loan for manufacturing businesses is the best for raising immediate capital.
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