Indian Overseas Bank Business Loan
Last Updated : Nov. 7, 2016, 12:01 p.m.
Indian Overseas Bank provides a business loan to the entities for the expansion and capital growth. The company grants the funds for the maximum value of Rs. 2 crores. However, the quantum of loan, rate of interest and the processing charges depends on the scheme one has opted for. The rate of interest charged on the loan is linked to the base rate. The processing fee ranges from Rs. 1,000 to Rs. 20,000 and one can avail loan for the longest tenure of 10 years.
Indian Overseas Bank Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rates | 12.75% p.a |
| Loan Amount | Credit available up to Rs. 2,00,00,000 |
| Tenure | Up to 10 years |
| Processing Fees | Rs. 1,000 – 20,000 |
Indian Overseas Bank Business Loan Schemes, Eligibility and Other Details
| Business Loan Scheme | Eligibility | Quantum of Loan | Tenure | Processing Fee |
|---|---|---|---|---|
| IOB Micro One | Only new customers falling under Micro Enterprises with capital investment : - Manufacturing : Original investment in plant and machinery up to Rs. 25,00,000 - Service Enterprises : Investment in equipments up to Rs. 10 lacs | Up to Rs. 50,00,000 | Up to 7 years | Minimum: Rs. 1,000 Maximum : Rs. 5,000 |
| IOB Engineer | - Civil Engineers (Individuals up to 65 years of age) -Proprietorship Concern -Partnership Firm -Partnership with Limited Liability | Amount sanctioned depends on the category and requirement of the applicant | Up to 7 years | 0.25% of the loan amount subject to a minimum of Rs. 5,000 |
| IOB MSE Plus | Manufacturing and service enterprises coming under Micro and Small Enterprise category | Up to Rs. 1,00,00,000 | 5 years – 10 years | Not specified |
| IOB CA Scheme | - Chartered Accountants (individual or joint) - Proprietorship Concern -Partnership Firm -Partnership with limited liability | Rs. 10,00,000 to Rs. 1,50,00,000 | Up to 10 years | 0.25% of the loan amount subject to a minimum of Rs. 5,000 |
| IOB SME Mahila Plus | - The women who have at least completed graduation, and desire to start a unit in the age group of 21 to 50. Preference will be given to women entrepreneurs with technical qualification and women professionals. - Either a Proprietorship Concern or a partnership with women in the lead - Private Limited companies with woman as the Managing director/or a Director in a key position - Existing units fully managed by a woman entrepreneur | - For manufacturing unit- Up to Rs. 2,00,00,000 - For service enterprises – Rs. 1,00,00,000 | 10 years | Rs. 200 per lac subject to a maximum of Rs. 20,000 |
Indian Overseas Bank Business Loan EMI Calculator
EMI is the monthly installment amount paid by the borrower to the lender against the settlement of the loan. This amount is the break up of the repayment amount that the borrower pays to the lender. It consists a part of the principal amount and the interest amount. This amount can be calculated using the Business Loan EMI Calculator . It is a device made to ease the calculation and compute the accurate result.
For Example : If a borrower avails a loan of Rs. 2,00,00,000 for the period of 10 years at the 12.75% p.a rate of interest then his EMI will be Rs. 2,95,680.
Table Showing EMI, Total Interest Amount, Total Repayment Amount
| Loan Amount (in Rs.) | Loan Tenure (in years) | Interest Rate (p.a,) | EMI (in Rs.) | Total Interest Outgo (in Rs.) | Total Amount (EMI+Interest) (in Rs.) |
|---|---|---|---|---|---|
| 2,00,00,000 | 1 | 12.75% | 17,84,001 | 14,08,006 | 2,14,08,006 |
| 2,00,00,000 | 2 | 12.75% | 9,48,490 | 27,63,751 | 2,27,63,751 |
| 2,00,00,000 | 3 | 12.75% | 6,71,473 | 41,73,037 | 2,41,73,037 |
| 2,00,00,000 | 4 | 12.75% | 5,34,072 | 56,35,438 | 2,56,35,438 |
| 2,00,00,000 | 5 | 12.75% | 4,52,506 | 71,50,361 | 2,71,50,361 |
| 2,00,00,000 | 6 | 12.75% | 3,98,848 | 87,17,056 | 2,87,17,056 |
| 2,00,00,000 | 7 | 12.75% | 3,61,126 | 1,03,34,625 | 3,03,34,625 |
| 2,00,00,000 | 8 | 12.75% | 3,33,354 | 1,20,02,029 | 3,20,02,029 |
| 2,00,00,000 | 9 | 12.75% | 3,12,205 | 1,37,18,100 | 3,37,18,100 |
| 2,00,00,000 | 10 | 12.75% | 2,95,680 | 1,54,81,554 | 3,54,81,554 |
Amortization Table
| Year | Principal Payment (in Rs.) | Interest Outgo (in Rs.) | Balance Amount (in Rs.) |
|---|---|---|---|
| 1 | 10,58,608 | 24,89,552 | 1,89,41,392 |
| 2 | 12,01,753 | 23,46,407 | 1,77,39,639 |
| 3 | 13,64,253 | 21,83,907 | 1,63,75,386 |
| 4 | 15,48,729 | 19,99,431 | 1,48,26,657 |
| 5 | 17,58,151 | 17,90,009 | 1,30,68,506 |
| 6 | 19,95,889 | 15,52,271 | 1,10,72,617 |
| 7 | 22,65,777 | 12,82,383 | 88,06,840 |
| 8 | 25,72,158 | 9,76,002 | 62,34,682 |
| 9 | 29,19,967 | 6,28,193 | 33,14,715 |
| 10 | 33,17,823 | 2,33,354 | 0 |
How To Apply
The eligible candidates can avail the business loan from the Indian Overseas Bank by visiting the nearest branch office or can talk to the customer care executive on the 24×7 helpline number.
Features & Benefits
- Multiple business loan schemes to opt from
- Loan available for the highest value of Rs. 2 crores
- Lower rate of interest
- Minimal processing fee
Documents Required
- PAN Card – For Individual / Partnership Firm / Company
- Identity Proof – Any one (e.g. Voter ID / Driving License / Passport / Aadhar Card)
- Address Proof – Any one (e.g. Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
- Ownership proof of either residence or office either in the name of applicant or jointly with family members
- Business Continuity Proof – Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
- Letter certifying end use of the business loan funds on Business Letterhead
- Passport Size Photographs of all applicants and co-applicants
Factors Affecting Business Loan Eligibility
| Quantitative Parameters | Qualitative Parameters |
|---|---|
| - Financial Ratios - Sales Turnover and Profitability Record - Credit History | - Management Details/ Shareholding Pattern - Industry - Business Model |
Indian Overseas Bank Customer Care
For other inquiries, doubts and grievances give a call on 18004254445. The customer care executive will resolve your doubt in the best possible way. The customer care service is available 24 hours a day and 7 days a week.