loan for warehouse construction

 Loans for warehouse construction are available from banks and government schemes, often linked to subsidies (like NABARD's for agriculture) and require a strong project report, land documents, and business financials, with terms varying from basic business loans (e.g., Bajaj Finance) to specific infrastructure financing (e.g., Bank of Baroda, TIIC) for entities like companies, firms, or farmer groups, covering up to 75-95% of project costs for eligible applicants. 

Types of Loans & Providers
  • Commercial Banks: Offer term loans, cash credit, and specialized schemes (e.g., Bank of Baroda for storage structures, SBI for cold storage/warehouses).
  • Government-Backed Schemes:
    • NABARD: Offers credit-linked subsidies and loans for building warehouses, silos, and cold storage, targeting farmers, entrepreneurs, and government agencies.
    • State Agencies (e.g., TIIC in Tamil Nadu): Provide specific schemes for godowns, especially for SSI units.
  • NBFCs (e.g., Bajaj Finance): Offer warehouse financing, often with flexible features, for business needs. 
Key Features & Requirements
  • Quantum: Can range from a few lakhs to crores, depending on the project and lender.
  • Margin/Promoter Contribution: Typically 25% (Bank of Baroda) or 35% (TIIC) of project cost.
  • Tenure: Up to 15 years (Bank of Baroda) or 7-11 years (Yubi).
  • Eligibility: Varies, but often includes companies, partnerships, individuals, FPOs, SC/ST/Women groups.
  • Security: Hypothecation/mortgage of land/asset, collateral. 
Subsidy Potential (NABARD Example)
  • General Beneficiaries: Up to 25% subsidy (max ₹75 Lakhs for 5,000 MT).
  • Reserved Categories (Women, SC/ST, FPOs): Up to 33.33% subsidy (max ₹1 Crore for 5,000 MT). 
How to Apply (General Process)
  1. Develop Project Report: Detailed plan, cost estimates, financial projections.
  2. Gather Documents: KYC, land records, IT returns, project report.
  3. Approach Bank: Submit application to a commercial/rural/cooperative bank.
  4. Bank Appraisal: Project feasibility and subsidy eligibility assessed.
  5. Sanction & Implementation: Loan sanctioned, construction proceeds.
  6. Subsidy Release: Bank processes subsidy release from NABARD/Govt..