Cold storage loans are a type of business loan that is used to finance the construction or renovation of a cold storage facility. Cold storage facilities are used to store perishable goods, such as food, pharmaceuticals, and flowers. The loans are typically secured by the cold storage facility itself.
The interest rates on cold storage loans vary depending on the lender, the borrower's credit score, and the terms of the loan. The repayment terms for cold storage loans typically range from 5 to 10 years.
To qualify for a cold storage loan, the borrower must have a good credit score and a strong business plan. The borrower must also be able to provide collateral, such as the cold storage facility itself.
Cold storage loans can be a great way to finance the construction or renovation of a cold storage facility. Please note, it is important to compare interest rates and terms from multiple lenders before applying for a loan.
Interest rates for cold storage loans can vary due to several different factors, including the lender, loan amount, repayment term, collateral, creditworthiness, and prevailing market conditions. A general interest rate can help you understand what to expect while looking for a cold storage loan.
The table below mentions the general interest rates to help you plan your loan effectively.
Type | Interest Rate |
---|---|
Commercial Banks | 8.5% to 12% |
NBFCs | 9.5% to 14% |
Government Schemes | 5% to 8% |
Securing a cold storage loan hinges on meeting specific eligibility criteria, which can vary slightly depending on the lender and chosen loan type. Here's a breakdown of the key factors often considered:
General Criteria:
Additional Criteria (may vary depending on lender and loan type):
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An EMI (Equated Monthly Instalment) calculator is an invaluable tool for individuals or businesses considering a cold storage loan. It allows borrowers to estimate their monthly repayment amounts based on the loan amount, interest rate, and tenure. By inputting these variables, users can make informed decisions regarding loan affordability and plan their finances effectively.
The EMI calculator simplifies the complex calculations associated with cold storage loans, providing a clear understanding of the financial commitment involved in the borrowing process.
You can use the Buddy Loan EMI calculator to simplify your process:
The documents required for your cold storage loan application can vary depending on the chosen lender, loan type, and government schemes involved. However, here's a comprehensive list of commonly requested documents to prepare:
Several government schemes in India offer attractive cold storage loan options, promoting agricultural development and minimising post-harvest losses. Here are some key schemes that provide loans for cold storage:
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Choosing the right cold storage loan provider is crucial for businesses. This comparison involves assessing factors like interest rates, eligibility criteria, and additional services offered by different lenders.
By making informed decisions, businesses can secure the most suitable financing for their cold storage needs.
Bank/NBFCs | Interest Rate (p.a.) | Tenure |
---|---|---|
State Bank of India(SBI) | 8.90% onwards | Up to 6 years |
HDFC Bank | 10.00% - 22.50% p.a. | Up to 48 years |
ICICI Bank | 12.50% - 13.60% p.a. | Up to 60 months |
Axis Bank | 14.65% - 18.90% p.a. | Up to 60 months |
Kotak Mahindra Bank | 16% - 26% p.a. | Up to 7 years |
RBL Bank | 12.25% - 25% p.a. | Up to 48 months |
IndusInd Bank | 13% to 22%. | Up to 48 months |
Bajaj Finserv | 9.75% - 30% p.a. | Up to 96 months |
IndiaLends | 10.25% p.a. onwards | Up to 60 months |
Incred | 12% p.a. onwards | Up to 36 months |
IIFL Finance | 11.25% - 33.75% p.a. | Up to 5 years |
FlexiLoans | Starting at 12% p.a. | Up to 36 months |
Tata Capital | Starting at 19% p.a. | Up to 60 months |
Protium Loan | 18% p.a. onwards | Up to 72 months |
mCapital | Starting at 24% p.a. | Up to 36 months |
KreditBee | 12.24% - 29.88% p.a. | Up to 24 months |
Money View | Starting at 15.96% p.a | Up to 60 months |
Hero FinCorp | Up to 26% p.a. | Up to 5 years |
NeoGrowth Finance | 19%-24% p.a. | Up to 7 years |
Lendingkart | 12%-27% p.a. | Up to 36 months |
Indifi Finance | 15% - 24% p.a. | Up to 36 months |
ZipLoan | 12% - 18% p.a. (Flat ROI) | Up to 36 months |
AYE Finance | 28% onwards | Up to 36 months |
InCred | 20% onwards | Up to 48 months |
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Note- The interest rates are dynamic and subject to change based on your credit history and creditworthiness.Securing a cold storage loan involves strategic planning and adherence to specific considerations unique to this industry. Here are key tips for a successful cold storage loan application:
Step 1: Pick a lender: Compare rates, fees, and schemes offered by cold storage loan providers like PNB, NABARD, or online platforms.
Step 2: Prep your docs: Gather business registration, financials, plan, ID proof, and land docs (if applicable).
Step 3: Apply online: Fill out the lender's online form and upload your documents securely.
Step 4: Get verified: Expect calls or site visits for further info and credit checks.
Step 5: Receive decision: Lender evaluates your project and financial standing.
Step 6: Sign and receive: If approved, review and sign agreements to get the loan disbursed.
You can avail a business loan upto 50 lakhs as per your needs with Buddy Loan which provides you with a pool of RBI approved lenders.
With Buddy Loan, you can avail business loans at attractive rates through an easy process:
Ready to take the next step? Apply now!
A cold storage loan provides financing for building or expanding facilities to store temperature-sensitive agricultural produce or other goods.
Compare online lenders, gather project docs, apply online, verify details, await approval, then sign and receive funds.
Cold storage loans help build or expand temperature-controlled facilities to preserve food and goods, minimising waste and maximising profits.
Yes, eligibility often includes registered businesses, strong financials, project viability, and specific industry or location requirements.
Most lenders finance diverse facilities, including fruit & vegetable cold stores, meat & dairy cold chains, and pharmaceutical storage, depending on project specifics.
Loan amounts vary, but expect potential ranges from ₹25 lakhs to ₹1 crore, with higher options available for larger projects and government schemes.
Interest rates range from 5% (subsidised schemes) to 12% (commercial banks), with repayment terms flexible, often spanning up to 10 years.
Yes, collateral is typically required for most cold storage loans, as it mitigates the lender's risk. The specific type and value of collateral can vary depending on the lender and loan amount.
In many cases, yes, you can use a cold storage loan for renovating or expanding an existing facility, as long as the project meets the lender's eligibility criteria and aligns with the loan's intended purpose.
Expect to gather business docs, financials, project plan, ID proof, and land documents (if applicable), along with any scheme-specific requirements, for your cold storage loan application.
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