Bank Of India Business Loan
Last Updated : May 28, 2021, 9:13 p.m.
Bank Of India provides the business loan to the individuals, proprietors, partnership firms and limited companies to improve and expand their running business. The loan is sanctioned for the maximum tenure of 7 years and for the highest amount of ₹5 crores. The loan is disbursed after the evaluation of the documents and assessment of the business. The bank charges the nominal processing fee ranging from ₹500 – 10,000, depending on the amount disbursed. To know more read the details and loan schemes mentioned below :
Bank Of India Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rate | 10.20% - 12.95% |
| Loan Amount | Up to ₹5,00,00,000 |
| Tenure | Up to 7 years |
| Processing Fee | ₹500 – 10,000 |
How To Apply
To apply for the Bank Of India business loan visit the nearest bank branch. The branch officer will guide and assist you in following the process. You can even drop your contact information on the official website so that the representatives can reach you.
Bank Of India Business Loan EMI Calculator
The loan has to be repaid in the form of Equated Monthly Installments (EMIs). The EMI amount comprises a part of principal amount and interest amount. The calculation of this amount can be a tiring task for you. To ease your EMI calculation use the Business Loan EMI Calculator and get the accurate result without much efforts. The calculator computes the correct value in shortest time.
For Example, a person takes a loan of ₹50,00,000 from bank to enhance his business for a period of 3 years i.e. 36 months. The bank is offering the loan at an interest rate of 10.20% p.a. Just take a look at the calculations below to know the EMI payable.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 15,00,533 | ₹ 4,41,136 | ₹ 34,99,466 |
| 2 | ₹ 16,60,950 | ₹ 2,80,720 | ₹ 18,38,516 |
| 3 | ₹ 18,39,879 | ₹ 1,03,154 | ₹ 0 |
Table Showing Business Loan Schemes, Eligibility, Quantum of Loan and Tenure
| Business Loan Scheme | Eligibility | Quantum of Loan | Tenure | ||
|---|---|---|---|---|---|
| Star Laghu Udyami Samekit Loan | Micro & Small Enterprises in rural, semi urban, urban and metro areas | Rural Areas – ₹5,00,000 Semi-urban Areas – ₹10,00,000 Urban Areas – ₹ 50,00,000 Metro Areas – ₹1,00,00,000 | Maximum: 5 years | ||
| Star SME Liquid Plus | Proprietorship / Partnership firms, Limited Companies , engaged in the business for the past 3 years having audited financial statement of accounts The unit/ borrower should have sufficient source of funds to pay the margin and initial recurring expenses The business should be profit making for the last 2 years The credit rating should meet the standardised criteria set by the bank | Minimum – ₹10,00,000 Maximum – ₹5,00,00,000 | Maximum: 7 years | ||
| SME Auto Express | All existing SME units, as per new definition, run by Individuals, Proprietorship / Partnership firms, Limited Company, Trust, Society The unit / borrower should have sufficient net worth/ source of funds to pay the margin and initial recurring expenses Conduct of the existing account must have been satisfactory The credit rating should meet the standardised criteria set by the bank | Not specified | Maximum: 7 years | ||
| Star SME Term Loan | Micro & Small Enterprises in rural, semi urban, urban and metro areas | Rural Areas – ₹5,00,000 Semi-urban Areas – ₹10,00,000 Urban Areas – ₹ 50,00,000 Metro Areas – ₹ 1,00,00,000 | Maximum: 5 years | ||
Documents Required
- Identity Proof and Residence proof
- Photograph of borrower/ co– borrower and guarantor with their signatures attested by their Bankers
- Balance sheet and profit loss statement of last two years in case of firms/ companies
- Partnership letter in case of partnership firms
- Copy of Memorandum and Articles of Association, certificates of Incorporation and Commencement of business duly attested and copy of board resolution for availing the loan in case of limited companies
- For borrowers already having vehicles, copy of Registration Certificate
- Hypothecation Agreement
- Deed of Guarantee ( If applicable )
- Blank Transfer forms duly signed by the borrower to be kept on record
- Letter addressed to Insurance Co. duly signed by the borrower authorizing them to pay claims directly to the Bank
Features and Benefits of Bank Of India Business Loan
- Loans available against hypothecation
- Attractive rate of interest
- Nominal processing fee
- Flexible tenure lasting up to 7 years
Factors Affecting Business Loan Eligibility
- Loan Repayment track
- Credit Performance / Credit Bureau Update
- Debt servicing ability of the customer
- Business Vintage
- Financial Ratios
- Existing relationship
Bank Of India Business Loan Interest Rate
The interest charged by the bank on the business loan depends on multiple factors such as the amount of loan, time period and the repayment capacity of the applicant. It also depends on the individual’s credit rating and the business assessment. The Bank Of India charges nominal rate of interest ranging between 10.20% p.a. – 12.95% p.a. However, these rates are revised from time to time and are not uniform for all applicants.
Bank Of India Customer Care Number
To know the eligibility criteria, quantum of loan, repayment period, securities required and other terms & conditions associated with the business loan call on the customer care numbers given below :
Toll- Free Number – 1800 220 229, 1800 103 1906
Landline Number (For customers within India) – (022) 40919191
