For a collateral-free business loan, give us a missed call on +917289065700

×

Loan For Manufacturers

Judicious use of loans can create financial leverage. Sources of funding business can be retained earnings, equity capital and debt capital. Loan financing of business falls in the category of business debt funding. The right amount of debt component in the funding structure of business enables the business to acquire the best form of leverage. Optimal capital structure is associated with correct costs attributed to the different types of capital.

The cost of loan capital is low for manufacturing businesses when weighed with the financial leverage that is made possible. In comparison, retained earnings and equity funding may prove to be of high capital cost if used beyond a certain proportion as the opportunity costs of the fund can interplay with the cost of fund and business leverage.  Business loans for manufacturers are not the last funding resort but preferred means of business funding.

Loans Matched with the Type of Manufacturing Business:

A manufacturing set up has its own peculiarities. One manufacturing business is different from the other. Manufacturing can be of several types, broadly speaking the perishable, semi-perishable and non-perishable type of manufacturing. Different manufacturing businesses have different business cycles which influence the cash flow cycles. At Lendingkart, you can find business loans for every kind of manufacturing business and the cash flow cycle. Make the most of our loan products and realise the best cost of capital, capital structure and business leverage.

Get a flexible business loan for manufacturers based upon the cash flow cycles and business characteristics. Depending upon the type of manufacturing business, the cash flow can be:

  • Long-term and uncertain
  • Short-term and uncertain
  • Long-term and certain
  • Short-term and certain
  • Mid-term and uncertain
  • Mid-term and certain

Manufacturing business can require loan funding for various purposes:

Loan purpose

Loan features

 

 

Purchase of raw materials

Continuous interest based short term loans, payable out of cash flow

Purchase of machinery/equipment

One time long term EMI based flexi loans, payable out of profits

Renting of machinery equipment

Continuous interest based long term loan, payable out of cash flow

Purchase of manufacturing setup

One time EMI based long term flexi loans, payable out of profits

Rent of manufacturing setup

Ongoing interest based long term loans, payable out of cash flow and profits

Apply for Business Loan Now

At Lendingkart find the right type of loan matched with your business type. Lendingkart loan experts will help you arrive at the correct loan product choice that will help you reap lucrative benefits from your funding plan.

Features of Lendingkart Business Loan for Manufacturers:

We at LendingKart fully understand the cash flow requirements in any manufacturing business. Through our portal, you can source low cost, flexible loan funds, which are the right type for your business. Following are the general features of Lendingkart business loans for manufacturers:

Flexible repayment

Businessmen can opt for any particular loan tenure yet they would not be penalised if at a later stage they may want to change the tenure. For example, if you want to settle part of the loan or the entire early to reduce the EMI or close the loan, then we won’t charge you any penalty. Alternatively, you may also apply for an extension of loan tenure at no additional processing fees.

Flexible Tenure Options

At Lendingkart we have made available loans under several tenure options to suit the specific funding needs of all kinds of manufacturing businesses.

Fair Interest Rates

When you source loan products through us to infuse your manufacturing business, you can be assured of fair interest rates. Our loan interest rates are standardised across the financial services industry, and we never like to skim our customers. We may periodically adjust the rates by minimal basis points of 0.5 to 0.25 to adapt to the market corrections.

Swift Processing

When you source loans from us, there is no long waiting period. Manufacturing businesses move on fast decision making, and so do we. We understand the importance of time for manufacturing businesses. Business people and entrepreneurs can source loans from us within three working days.

No Surprise Charges

For sourcing our loan products, you just need to pay an initial processing fee of 2-5 % and then no more throughout the loan repayment tenure, regardless of loan plan adjustments and changes.

Apply for Loan Now

Business Loans for Manufacturers FAQs:

1. What is the maximum loan amount I can apply for?

The maximum loan amount you can apply for in the MSME loan for the manufacturing sector, whether it's for an existing manufacturing industry or a new manufacturing unit, varies depending on factors like your business's financial health, creditworthiness, and the lending institution's policies. Typically, it ranges from a few lakhs to several crores of rupees.

2. Is the interest rate fixed or variable?

The interest rate for an MSME loan in the manufacturing sector, including loans for new manufacturing units or the manufacturing industry, can be either fixed or variable. The specific terms may vary depending on the lender and the loan agreement, so it's essential to review the terms carefully before proceeding. LendingKart provides fair interest rates that are standardized, and may periodically adjust the rates by minimal basis points of 0.5 to 0.25 to adapt to market corrections.

3. How long does it usually take for the loan to be approved and disbursed?

The approval and disbursement timelines for an MSME loan for a manufacturing unit usually vary depending on factors like the lender's processing speed, documentation completeness, and creditworthiness. Loan disbursement at Lendingkart is pretty fast, as we understand the importance of time for any business. Business people and entrepreneurs can get loans approved and disbursed from us within three working days.

4. How is the loan repayment structured?

Lendingkart provides a versatile repayment system that allows entrepreneurs to choose their preferred loan tenure without the fear of incurring penalties if they decide to make changes later on. For instance, if you wish to pay off a portion or the entire loan ahead of schedule to lower your monthly installments or close the loan altogether, rest assured that there will be no penalty charges. Moreover, if you find the need to extend the loan tenure, you can do so without incurring any additional processing fees.

5. What is the tenure of business loans available at Lendingkart?

Generally 30 days to 36 months.

6. Does business loan need to be supported by collateral?

If you clear eligibility for unsecured loans, you need not maintain loan security backup.

7. How do I increase my loan eligibility to fund my manufacturing business?

Regular cash flow stream, past business performance history, ability to use credit, credit history and credit scores determine loan eligibility .

8. How to apply for a business loan with Lendingkart?

The entire process is online and can be completed in a few simple steps.

Business Loan Apply Online