1. Term Loans from Banks (Secured Loans)
Banks offer term loans for industrial land purchases, especially if the land is zoned (NA), has clear title, and is approved by local authorities. These are secured against the property itself.
- Tenure: 5–10 years
- LTV (Loan-to-Value): Up to 70%
- Requires income proof and legal clearance
- Suitable for end-use buyers and SMEs
2. Loans from NBFCs (Non-Banking Finance Companies)
NBFCs offer faster approvals and greater flexibility than banks, often financing even semi-approved or early-stage land parcels.
- Higher interest rates than banks
- Easier terms for self-employed or developers
- Good for phased purchase and working capital
- Ideal for moderate-risk buyers with growth intent
3. Lease Rental Discounting (LRD)
If the industrial land has existing tenants or lease agreements, banks and NBFCs offer LRD loans against future rental cash flows.
- Up to 70–80% of future lease value
- Long tenure and low EMIs
- Best for warehouses, parks, or BTS (Build-to-Suit) lands
- Improves liquidity for existing landowners
4. Project Finance for Development
Developers planning industrial layouts or logistics parks can access project financing from banks, institutions, or funds for land purchase plus development.
- Covers land + infra costs (roads, utilities)
- Structured in phases with milestone-linked disbursals
- Requires detailed DPR and marketability proof
- Ideal for land aggregators or park developers
5. Private Equity or Institutional Investment
Institutional investors or PE funds invest in land-heavy projects like warehousing parks, SEZs, or solar zones—usually through equity or debt instruments.
- Entry at ₹10 Cr+ deal sizes
- Common in JV or LLP structure
- Ideal for developers seeking capital + advisory
- Involves land pooling or pre-leased assets
6. Seller Financing or Deferred Payment Terms
Some sellers offer installment-based purchase models or seller financing for qualified buyers. This makes land affordable without upfront bank loans.
- 20%–30% down payment, rest over 6–24 months
- No bank involvement or mortgage needed
- Popular in plotted layouts or off-market deals
- Flexible terms through MoU or sale agreement
7. Line of Credit or Working Capital Loans
Businesses with healthy books can use their existing credit lines or cash credit facilities to purchase land for operational expansion.
- Collateralized against other assets or inventory
- Faster than new loan application
- Ideal for mid-sized manufacturers
- Suitable for smaller plots (under ₹3 Cr)
8. Subsidized Loans Through Government Schemes
Several states offer industrial land financing under MSME or startup subsidy schemes linked to state-run industrial development corporations.
- Interest subvention or partial capital grants
- Linked to SIDCO, MIDC, KIADB, SIPCOT allotments
- Requires business registration and project plans
- Ideal for first-time manufacturers and MSMEs
9. Loan Against Existing Property (LAP)
Buyers with residential or commercial assets can take a Loan Against Property to fund industrial land purchases, especially when banks hesitate on raw land.
- Up to 60% of asset market value
- Use funds for land purchase, infra, or clearance
- No usage restriction on capital
- Allows flexibility with repayment and tenure
