Bank Of India Business Loan

Business Loan 534 views

Business Loan

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    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 Rs. 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 Rs. 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

    Interest Rate10.20% p.a. – 12.95% p.a.
    Loan AmountUp to Rs. 5,00,00,000
    TenureUp to 7 years
    Processing FeeRs. 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.

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    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 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 Rs. 5,00,00,000 from bank to enhance his business for the period of 3 years. He will repay the loan amount in 84 monthly installments along with the interest charged. The bank's rate of interest ranges from 10.20% p.a. – 12.95% p.a. His monthly installment amount or EMI will be Rs. 8,35,235 – 9,08,240. The total amount he will be paying by the end of tenure will be Rs. 7,01,59,765 – 7,62,92,124 .

    Table Showing EMI, Total Interest Amount, Total Repayment Amount

    Loan Amount
    (in Rs.)
    Interest Rate
    (in years)
    (in Rs.)
    Total Interest Amount
    (in Rs.)
    Total Repayment Amount (Principal + Interest)
    (in Rs.)
    5,00,00,00010.20% - 12.95%144,00,447 - 44,64,69144,00,447 - 35,76,2915,28,05,360 - 5,35,76,291
    5,00,00,00010.20% - 12.95%223,11,865 - 23,75,91754,84,749 - 70,22,0095,54,84,749 - 5,70,22,009
    5,00,00,00010.20% - 12.95%316,18,058 - 16,83,49482,50,102 - 1,06,05,7735,82,50,102 - 6,06,05,773
    5,00,00,00010.20% - 12.95%412,72,937 - 13,40,1341,11,00,976 - 1,43,26,4476,11,00,976 - 6,43,26,447
    5,00,00,00010.20% - 12.95%510,67,279 - 11,36,3741,40,36,760 - 1,81,82,4576,40,36,760 - 6,81,82,457
    5,00,00,00010.20% - 12.95%69,31,343 - 10,02,3861,70,56,670 - 2,21,71,8126,70,56,670 - 7,21,71,812
    5,00,00,00010.20% - 12.95%78,35,235 - 9,08,2402,01,59,765 - 2,62,92,1247,01,59,765 - 7,62,92,124

    Amortization Table

    (in Rs.)
    (in Rs.)
    Balance Amount
    (in Rs.)
    146,96,136 – 51,59,60848,63,212 - 62,02,7444,48,40,392 – 4,53,03,864
    253,41,710 – 57,11,20243,11,618 – 55,57,1703,91,29,190 – 3,99,62,154
    360,76,034 – 63,21,76537,01,055 – 48,22,8463,28,07,425 – 3,38,86,120
    469,11,305 – 69,97,60230,25,218 – 39,87,5752,58,09,823 – 2,69,74,815
    577,45,689 – 78,61,40122,77,131 – 30,37,4791,80,64,134 – 1,91,13,414
    685,73,752 – 89,42,10314,49,068 – 19,56,77794,90,382 – 1,01,71,311
    794,97,422 – 1,01,81,0075,32,479 – 7,27,508
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    Table Showing Business Loan Schemes, Eligibility, Quantum of Loan and Tenure

    Business Loan SchemeEligibilityQuantum of LoanTenure  
    Star Laghu Udyami Samekit LoanMicro & Small Enterprises in rural, semi urban, urban and metro areasRural Areas – Rs. 5,00,000
    Semi-urban Areas – Rs. 10,00,000
    Urban Areas – Rs. 50,00,000
    Metro Areas – Rs. 1,00,00,000
    Maximum: 5 years
    Star SME Liquid PlusProprietorship / 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 – Rs. 10,00,000
    Maximum – Rs. 5,00,00,000
    Maximum: 7 years
    SME Auto ExpressAll 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 specifiedMaximum: 7 years
    Star SME Term LoanMicro & Small Enterprises in rural, semi urban, urban and metro areasRural Areas – Rs. 5,00,000
    Semi-urban Areas – Rs. 10,00,000
    Urban Areas – Rs. 50,00,000
    Metro Areas – Rs. 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
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    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