1. Public Sector Banks (PSBs)
Large government banks such as State Bank of India (SBI), Bank of Baroda, and Punjab National Bank offer loans against industrial land if it has clear NA (Non-Agricultural) status and clean title.
- Ideal for MSMEs and industrial owners
- Requires strong financial documentation
- LTV (Loan-to-Value) usually 50%–65%
- Long processing but lower interest rates (9–11%)
2. Private Sector Banks
Banks like HDFC Bank, ICICI Bank, Axis Bank, and IDFC First Bank provide loans against industrial land, especially when borrowers have good credit and income profiles.
- Faster processing than PSBs
- Offers both term loans and overdraft facilities
- Strong preference for urban/peri-urban plots
- Interest rates ~11%–14%, depending on profile
3. Non-Banking Financial Companies (NBFCs)
NBFCs such as Bajaj Finserv, Tata Capital, Aditya Birla Finance, and L&T Finance are more flexible in lending against industrial land, even if it’s in semi-urban or Tier-2 areas.
- Higher LTV (up to 70%) for approved lands
- Accept semi-developed plots and flexible income proof
- Interest rates range from 13% to 18%
- Faster disbursal, less red tape
4. Housing Finance Companies (HFCs) – Select Cases
Some HFCs like Piramal Capital or IndiaBulls Housing Finance extend loans for industrial or commercial plots if part of a larger real estate development.
- Focused more on land-to-building transition
- Supports builder and developer clients
- Project-based financing if layout or approvals exist
- Better suited for large-ticket transactions
5. Small Finance Banks (SFBs) and Cooperative Banks
Banks like AU Small Finance Bank or local cooperative banks may offer loans against industrial plots in specific geographies or regions they serve.
- Regional approvals and documentation emphasized
- Better access in rural and semi-urban belts
- Personalized terms and relationship-based lending
- Loan size typically smaller (₹10–₹50 lakh range)
6. SIDBI and Industrial Finance Corporations
For MSMEs and registered industries, SIDBI (Small Industries Development Bank of India) provides loans for industrial expansion, including purchase/refinance of land.
- Loans tied to business use or factory development
- Includes subsidy linkage and interest rebates
- Needs GST, UDYAM, and financial statements
- Long tenure loans up to ₹5–10 crore
7. Land-Backed Project Financiers
Larger institutions like Edelweiss ARC, JM Financial, and IFMR Capital may finance projects by offering structured loans against land bank holdings.
- Ideal for developers, industrial park operators
- Tailored for JV or lease development models
- Often structured as bridge finance or term facility
- Require strong legal due diligence and exit clarity
8. Loan Against Property (LAP) for Industrial Land
Most banks and NBFCs offer Loan Against Property (LAP) specifically for industrial plots with NA approvals and freehold status.
- Interest: 9.5%–14%, Tenure: 5–15 years
- Can be used for working capital or reinvestment
- Often used by landowners for expansion without selling
- EMI-based repayment, with part prepayment options
9. Private Lenders and Institutional Syndicates
Private financiers and institutional groups offer custom land-backed loans, especially for large plots (5+ acres) or industrial projects in pipeline.
- High interest (18–24%), short tenure (1–3 years)
- Useful for bridge funding or urgent need
- Requires asset valuation and strong exit plan
- Riskier, but fast approval and flexible structuring
