Cold Storage Loan

Cold storage is basically a term which refers to frozen storage facilities, usually used to preserve food -- vegetables, meat -- or used to store pharmaceuticals. Cold storage could be as simple as a small walk-in freezer or it could denote a 200,000-sq. ft. warehouse. It could be a refrigerated mobile trailer or a cargo container to go on ships.

Cold storage of perishable produces is important -- as perishability is directly responsible for price fluctuation, market gluts, and other problems. At low temperature, the chances of decay are significantly reduced and the shelf life of the product is increased – thus the importance of cold storage and refrigeration.

India is one of the largest producers of agricultural products. Without cold storage -- given the tropical climate -- all the produce will be spoilt for which it has no use. Hence, the need for cold storage is high in India. Given the demand, banks and other financial institutions have come up with loan products specifically catering to this need.

Cold Storage Loan Eligibility

Cold storage loan is given to individuals, Public & private limited concerns, APMCs, dealers, traders, co-operative societies, and joint sector companies in public or private sector for construction and running of cold storage units designed to store agriculture produce/products.

Loan Amount

Depending on the lender, the loan amount typically it ranges from a minimum of Rs.1 lac and a maximum of Rs. 20 Crore, depending on the project cost.


Cold storage loans are long terms loans which are typically offered for up to 9 years with a grace period of up to 2 years depending on the lender.


This is a secured loan which would need collateral in the form of hypothecation of assets. Some lenders ask for the mortgage of property, with or without third party guarantee of adequate worth. 

Cold Storage Loan Interest Rate

The interest rate is as decided by the lender from time to time and is influenced by a variety of factors – some of the factors being your net worth, credit history and score and relationship with the lender.  

Apply for Cold Storage Loan in India

If you are looking for a cold storage loan and are unsure about how to apply, then CreditMantri can guide you. You can typically apply for a business loan which can be utilized to establish your cold storage business.

You can check your eligibility and apply for a business loan by signing up with CreditMantri. It is quick, simple and above all, free.

CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence the chances of your business loan application getting approved are higher.

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