Implementing cleaner production measures results in prevention of environmental pollution and generates revenue for industry through increased production. The awareness of this among SMEs in India is not widespread. The SIDBI-Environmental Cedit Line project has made a contribution towards this by providing loans for implementing cleaner production. The work during this study focussed on the textile wet-processing industry and the opportunities for cleaner production in this sector. Rapid Environmental Due Diligence Review and Cleaner Production Audit were conducted to determine whether the facilities were eligible for receiving the cleaner production loan. Most of the time, the cleaner production options recognized (improvements in house-keeping, recycling and reuse) were simple practices requiring little investment; only changes in management and operating practices are needed. Modifications involving the replacement of old machinery and with new state-of-the-art equipment is a costly option. Both the units audited were actually seeking loans to finance technology (machinery) upgradation. There was not much scope for implementation of the other recognized cleaner production options such as product modification and input substitution because production was dictated by the demands of the local and export market. During the auditing process, the unit’s compliance with environmental regulations was also examined. The units’ management was made aware of the fact that adoption of cleaner production measures would enhance their productivity, compliance status and profits. The factors hindering the uptake of cleaner production and other pollution prevention methods on-site were also identified.