Business loans for manufacturers can be an excellent source of funds, especially for MSMEs, which are usually restricted on funds. Business loans are available for all kinds of businesses, whether it's a supermarket needing funds or a loan for an online business like e-commerce products.

Let’s explore how manufacturers can apply for a business loan, what such loans are, their benefits, how to apply for one, and more.

What is a Business Loan for Manufacturers?

A business loan is a type of loan that is provided for working capital requirements, machinery to be purchased, or infrastructure to be developed by businesses. This loan for the manufacturing industry is vital, as such businesses require finance to produce their products and are short of the same, especially MSMEs.

Benefits of a Business Loan for Manufacturers:

Availing a business loan for the manufacturing industry in 2025 can bring the following benefits:

• No collateral is needed to avail loans
• Simplified application procedures and eligibility criteria
• Attractive interest rates
• Flexible repayment tenure options
• Simplified documentation requirements

How to Apply for a Business Loan?

The process of applying for a business loan for manufacturers is quite an easy one, and in today’s times, it's very possible to get an instant business loan. The manufacturing loans also often require no collateral to be kept. The following is everything about availing a business loan:

Application Procedure:

Although the application procedures are different for different lenders, the following are some of the general steps that need to be followed:

 1. Register on the application portal

Firstly, the customer needs to sign in to the online application portal and obtain their login credentials. These credentials are essential as they will be used to log in every time.  

2. Fill in the provided loan application form

The next step involves filling out the applicable form for the loan scheme chosen. These forms usually involve providing contact and residential information of the customer.

3. Upload all the necessary documents

After filling out the provided form, the customer needs to upload all the scanned copies of all the documents required by the financial institution.

4. Pay the required processing fees

Property loans require a processing fee, usually expressed as a percentage of the amount needed, which needs to be paid by the customer.

5. Get Loan Approval

Once all the loan application formalities are completed, the customer needs to wait to get the loan approval while the bank processes the documents submitted and makes a decision regarding the same.

Eligibility Criteria for business loan for manufacturers

The following are some of the common criteria for availing such loans:

• Specified age limits
• Minimum business history requirements
• Specified minimum CIBIL Score requirements
• Minimum listed turnover requirements

Documents Required for a Business Loan for Manufacturers

While the documents required vary with the lenders, the following are some generic papers:

• Identity Proof: Aadhaar card, PAN card, passport, or voter ID of the business owner.
• Address Proof: Utility bills, rent agreement, or property papers.
• Business Registration Documents: GST registration, company incorporation certificate, partnership deed, or MSME registration.
• Financial Statements: Last 2–3 years’ balance sheets, profit & loss statements, and income tax returns of the business.
• Bank Statements: 6–12 months of bank statements for the business account.
• Project/Loan Proposal: Details of the loan requirement, purpose, and repayment plan.
• Collateral Documents: If applying for a secured loan, property, or asset documents for a mortgage. In the case of an unsecured loan, no collateral is required. 
• Passport-sized photographs: Recent 2-3 passport-sized photos 

Top Business Loans for Manufacturers in India in 2025

Here are some of the best manufacturing loans in India and their schemes: 

1. Manufacturer Loan - Business Loan for Manufacturers - HDFC Bank

HDFC Bank offers a business loan for manufacturers with a maximum limit of ₹40 lakhs (₹50 lakhs in select locations). The loan comes with a flexible tenure ranging from 12 to 48 months. Additionally, it provides an unsecured dropline overdraft facility of up to ₹15 lakhs.

2. Business Loan - ICICI Bank

ICICI Bank also provides a business loan, which requires minimal documentation and no collateral. The maximum limit under this scheme is₹75 lakhs. These loans are approved and disbursed online, with an easy application procedure. The repayment tenure is 6 to 60 months.

3. Business Loan - Kotak Bank

Kotak Bank also provides a business loan in the range of ₹3-75 lakhs, without requiring any collateral, and with quick and hassle-free online processing. It also contains a flexible repayment tenure of up to 60 months.

My Mudra Tip

With My Mudra, you can easily find the right business loan for manufacturers at competitive interest rates. Our finance experts provide detailed comparisons of top loan options, helping you choose the best fit while staying within your limit.

Summing Up

Business loans are one of the best sources of funding for businesses. They help manufacturers expand operations, introduce new segments, and achieve growth. The My Mudra team ensures instant loan approvals, quick disbursals, and competitive interest rates. Reach out to us anytime, and we will be there to support you.

Also Read:
- Unsecured Business Loan Interest Rate in India 2025
- How to Apply Small Business Loan Online in 2025