2025-06-12

✅ Which Banks or Financial Institutions Provide Loans for Biomass Pellet Plants?

Summary of Loan Assistance for Biomass Pellet Plants (India)

Several Indian financial institutions offer dedicated loans for biomass pellet plant setups. Loan eligibility, collateral requirements, and funding amounts vary based on capacity, borrower profile, and location. However, SIDBI, NABARD, and SBI (with CGTMSE support) are key players supporting biomass energy initiatives, including collateral-free loans for MSMEs.


💰 Estimated Loan Requirements Per Tonne Capacity (Indicative)

Plant CapacityEstimated Project Cost (₹ Lakhs)Loan Amount (₹ Lakhs)Collateral-Free (CGTMSE/MSME)?
1 TPH₹120–₹150 Lakhs₹90–₹120 Lakhs✅ Yes (under CGTMSE)
2 TPH₹200–₹250 Lakhs₹150–₹200 Lakhs✅ Yes (for MSMEs)
4 TPH₹400–₹500 Lakhs₹300–₹400 Lakhs❌ Partial collateral may be needed
5 TPH₹550–₹700 Lakhs₹400–₹500 Lakhs❌ Collateral usually required

🏦 Financial Institutions Supporting Biomass Pellet Plant Loans

1. SIDBI (Small Industries Development Bank of India)

  • Focus: MSMEs, green energy, manufacturing
  • Loan Limit: Up to ₹500 Lakhs (under various schemes)
  • Collateral: ❌ Optional (if CGTMSE coverage applied)
  • CGTMSE Coverage: Available for eligible MSMEs
  • Online Application: https://www.sidbi.in

2. NABARD (National Bank for Agriculture and Rural Development)

  • Focus: Agro-waste biomass, rural enterprises
  • Loan Assistance: Capital subsidy + term loan
  • Collateral: ❌ May not be required under subsidy schemes
  • Schemes: Bio-Energy, Dairy-Entrepreneurship, Agri-Infrastructure Fund
  • Apply Through: Partnered banks/NABARD-approved NBFCs
  • Website: https://www.nabard.org

3. SBI (State Bank of India) – MSME Loans

  • Focus: Industrial projects including renewable energy
  • Loan Amount: ₹10 Lakhs to ₹500 Lakhs
  • Collateral: ✅ Waived under CGTMSE for eligible MSMEs
  • Scheme: SBI Simplified SME Loan, Project Loan, Stand-Up India
  • Website: https://sbi.co.in

4. Other Public & Private Banks

Many other banks like Punjab National Bank (PNB), Bank of Baroda, ICICI Bank, and HDFC Bank also provide project finance under:

  • Startup India
  • Stand-Up India
  • Renewable Energy Schemes
  • Most require partial collateral or promoter margin of 20–30%.

How PelletIndia Helps in Biomass Pellet Plant Turnkey Projects

Summary: End-to-End Turnkey Solutions from PelletIndia.com

PelletIndia, a division of Servoday Plants & Equipments Limited, is India’s leading provider of turnkey solutions for biomass pellet plants. With decades of experience and in-house manufacturing, PelletIndia ensures everything — from project planning to plant commissioning — is handled professionally, efficiently, and cost-effectively.


🔧 PelletIndia’s Turnkey Project Scope

PhaseSupport Provided by PelletIndia
1. Feasibility StudySite evaluation, raw material analysis, project viability, and GCV assessments.
2. Customized Engineering DesignPlant layout, 3D process flow, electrical load plan, and P&ID diagrams.
3. Machinery ManufacturingIn-house production of pellet mills, dryers, hammer mills, mixers, conveyors, coolers, and silos.
4. Napier Grass & Biomass ExpertiseSpecial solutions for Napier Grass, bagasse, coconut shell, sawdust, rice husk, bamboo, etc.
5. Installation & CommissioningOn-site erection, electrical setup, automation integration (PLC/VFD), and trial runs.
6. Operator Training & SOPsComprehensive training, manuals, and SOPs for efficient 24×7 operation.
7. After-Sales SupportSpare parts, maintenance contracts, online monitoring systems (IoT), and technical support.
8. Loan & Government Subsidy AssistanceGuidance with SIDBI/NABARD/SBI financing, CGTMSE coverage, and state/central government benefits.
9. Export SetupSupport for international clients: shipping, customs, and technical liaison.
10. Branding & Business Launch HelpWebsite, brochures, digital promotion, and biomass pellet marketing strategies.

🏆 Why Choose PelletIndia?

  • ✅ Over 50+ turnkey pellet plants executed
  • In-house design + manufacturing + automation
  • ✅ Support for biomass fuels of all types
  • ✅ Expertise in high-moisture biomass handling
  • Automated feeding systems, dewatering tech & low OPEX design



⚠️ Disclaimer

Loan eligibility, processing, and disbursement are subject to individual bank policies, RBI norms, and creditworthiness. Consult your Chartered Accountant or Bank Loan Advisor for tailored financial planning. Data above is indicative and may vary.