Bank of India Business Loan
One of the top commercial banks, Bank of India, has significantly increased both its domestic and global footprint during the past few years. A variety of banking and financial products, including several kinds of MSME loans to people, sole proprietors, businesses, and enterprises, are offered by Bank of India to its clients.
Features and Benefits of Bank of India Business loan
Every MSME business activity in the manufacturing, service, and commerce sectors is catered to by a wide selection of business loan packages offered by the Bank of India. The interest rate for a business loan from the Bank of India begins at just 9.70% p.a. and, depending on the scheme selected, the loan amount may reach INR 5 crores.
Imagine if you had a duffle bag full of cash with a rupee sign and every time your business needed investment, you could reach in and get the amount required. Bank of India business loan is the duffle bag full of money. The Bank of India business loan interest rate is alluring and provides a perfect solution to all your business problems. Get in-depth knowledge of this page to understand the process to apply for Bank of India business loan.
The following are the benefits and features of the business loan offered by the Bank of India:
- To assist various purposes and occupations, Indian Bank has designed various loan schemes
- Each business scheme has its set tenure for loan repayment, but the tenure can go to a maximum of 7 years
- The maximum business loan amount you can avail for your business depends upon the scheme and if you meet the criteria set.
- The maximum amount of loan provided is up to INR 10 crores.
- When opting for a loan scheme, there may or may not be a requirement for collateral.
- Bank of India business loan interest rates are attractive
- The funds raised through the business loan can be invested towards workplace modernisation, business expansion, and procurement of vehicles and pieces of equipment.
- You can also use these funds as working capital.
- You can also perceive these loans as term loans.
- Subsidiaries and accompanying benefits tag along with loans approved by the government
- The residents in rural areas get an advantage in terms of applicable rates and terms, making it convenient for them to get their hands on the loan as opposed to the urban population.
Eligibility Criteria For Bank of India Business loan
Following are the Bank of India business loan eligibility criteria:
- The Star MSME e-Rickshaw Finance programme offers loans to individuals, proprietorship businesses, and partnership businesses operating in the transportation industry and holding an e-rickshaw permit.
- Any startup that meets the bank's definition is eligible for a loan through the Star Start Up programme.
- Star SME Auto Express is open to existing accounts with good behaviour and net worth with entry-level ratings.
- You must have adequate business experience with the corresponding financial statements for the last two years to be eligible for the BOI Star Vyapar scheme.
- MSMEs that have been in business for at least three years and have had profitable operations for a minimum of two years before are eligible for GST registration.
- Professionally competent individuals for BOI Star Doctor Plus must fall into the age range of 25 to 60.
- Established contractors that have been in operation for at least three years, have audited financials, and have an SBS 5 entry-level rating are eligible for the loan under the Star SME Contractor Credit Line.
- Businesses with an entry-level SBS 5 grade that have been profitable for the past two years are eligible for funding through the Star SME Liquid Plus programme.
- Following the Star Laghu Udyami Samekit Loan, all micro and small businesses are eligible for loans.
- Sponsor Corporations, which are already bank customers, or Corporations having an external rating, may apply for Star Channel Credit.
- Units associated with manufacturing or selling with a GSTIN are eligible for the Star MSME GST Plus scheme. An entry-level investment -grade should be assigned to the account rating.
- The Star MSME Education Plus plan candidate must have their financials from the previous three years audited. Additionally, applicants must have a record of profitability for a minimum of two years to receive approval from educational institutions, such as schools, colleges, and universities.
Factors Affecting Bank Of India Business Loan Eligibility
When you apply for Bank of India business loan, the following factors can affect your eligibility:
Overall Business Experience
There are chances that the bank will reject your loan application if you cannot demonstrate the length of your business's history. The total years the organisation has been providing the product or services plays a vital role in loan approval. Some banks want a lengthy vintage period, which you may demonstrate using your ITR.
The company's yearly revenue determines the size of your business loan. If you wish to take out a long-term, large-amount company loan, you must have a high turnover. The turnover will determine the loan amount, and as a result, it will impact your eligibility to receive the loan.
The lenders request evidence of your identification, company history, income, and address. Therefore, you must attach all relevant documents to the back. The finance provider might reject your business loan application if you fail to present the paperwork linked to the proofs mentioned earlier. Therefore, the paperwork may also greatly impact your ability to obtain a bank loan for your company.
The financial flow into the business operations is a key factor in evaluating eligibility. The bank will minimise the eligibility requirements if your business has a strong cash flow. So that there is still liquidity in the company, you must effectively manage your cash flow.
Bank of India Business Loan Fees and Charges
When you apply for Bank of India business loan, you might have to pay the following charges.
A bank charges a processing fee when they process your loan request. The processing fee charged by Bank of India are:
|Loan Amount||Semi-Urban and Rural Branch Charges||Metro and Urban Branches Charges|
|Less than INR 1 lakh||Nil||Nil|
|INR 1 lakh or more||INR 250/lakh up to INR 12.5 lakh||INR 300/lakh up to INR 20 lakh|
Note: The above processing fee is provided as of September 2022. The rates may change.
The documentation charge is a non-refundable fee you must pay to the bank to prepare the documents. The documentation charges charged by the Bank of India are:
|Amount of Loan (in INR)||Charges (in INR)|
|Up to INR 1 lakh||Nil|
|INR 1 lakh - INR 5 lakh||1,000|
|INR 5 lakh - INR 10 lakh||2,000|
|INR 10 lakh - INR 25 lakh||3,000|
|INR 25 lakh - INR 100 lakh||5,000|
|INR 1 crore - INR 5 crore||10,000|
|INR 5 crore - INR 10 crore||20,000|
|INR 10 crore and above||30,000|
Note: These documentation charges are provided as of September 2022. The rates may change.
Documents Required for Bank of India Business loan
The documents required for Bank of India business loan are:
- GSTN registration proof
- Income Tax Returns filed must be provided in the XML format
- PDF file showcasing bank statements for the past six months
- Business owners and directors' educational, personal and ownership details are required to be submitted
- A letter mentioning the business directors and owner's consent towards the loan
Factors Affecting Bank of India Business Loan Interest Rate
Factors affecting Bank of India's business loan interest rate are:
The credit score is a major factor that assesses a borrower's creditworthiness. It is a numerical representation of how much a lender can count on a borrower to make repayments. If the credit score is good, the borrower can find it easier to get the best financing for their business. Credit scores range from 300 to 900. Experts recommend having a CIBIL score of 750 or above to qualify for a new company loan.
Repayment Track Record
Your past payback history significantly affects interest rates on business loans. You have a better chance of receiving a lower interest rate if your repayment history is solid. Even if your credit score is excellent, your repayment history is not; thus, the lender may choose to charge a high or low-interest rate.
Any financial institution may charge you a lower interest rate if you are an established and loyal customer. Because a satisfied consumer is what every financial institution wants, therefore, always work to make your partnership ideal so that you can benefit from the low-interest rate option.
Each lender bases its business loan interest rate on the annual business turnover. The lender will reduce the EMI amount and interest rate if the business turnover is large. However, if it is low or not to the lender's liking, you will charge a higher interest rate and the EMI amount would be higher.
Before determining the interest rate, the lender always looks at your company's monthly, quarterly, and annual revenue. The lender company claims that the revenue is used to determine the loan interest rate. The lender can approve your loan application if they don't make any excellent money, but they'll charge you a higher interest rate.
How does the EMI calculation work for Bank of India Business loans?
It is advisable to calculate Bank of India business loan EMI through an online EMI calculator. However, if one is persistent in doing the manual computation, then use the following mathematical expression:
EMI = P × r × (1 + r)n/((1 + r)n - 1)
Here, 'P' depicts the Principal amount, 'r' depicts the rate, and 'n' depicts the tenure.
How does the Bank of India compare with Other Lenders?
The following table compares the Bank of India's and other lenders' interest rates:
|Name of the Bank or NBFC||Rate of Interest|
|Bank of India||10.20% onwards|
|HDFC Bank||10.00% – 22.50% p.a.|
|FlexiLoans||1% per month onwards|
|ZipLoan||1% – 1.5% per month (Flat ROI)|
|Axis Bank||14.25% – 18.50% p.a.|
|IDFC First Bank||14.50% onwards|
|Kotak Mahindra Bank||16% – 19.99%|
|Fullerton Finance||17% – 21%|
|Bajaj Finserv||17% p.a. onwards|
|RBL Bank||17.50% – 25% p.a.|
|ICICI Bank||17% onwards|
|Indifi Finance||1.5% per month onwards|
|Lendingkart Finance||1.5% – 2% per month|
|Tata Capital Finance||19% p.a. onwards|
|NeoGrowth Finance||19% – 24% p.a.|
|Hero FinCorp||Up to 26% p.a.|
Bank of India Business Loan Customer Care Number
Bank of India has the following customer care details. Their users can reach out to these service providers 24x7.
Head Office: Bank Of India, Star House, C - 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051.
Phone Number: 022- 40919191
Telephone Number - 1800 220 229 / 1800 103 1906 / (022) – 40919191 (chargeable)
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Bank Of India's Other Products
Business Loan By Other Banks
- Axis Bank Business Loan
- Bank of Baroda Business Loan
- ICICI Bank Business Loan
- HDFC Bank Business Loan
- Bajaj Finserv Business Loan
- IndiaBulls Business Loan
- Canara Bank Business Loan
- Union Bank of India Business Loan
- CITI Bank Business Loan
- YES Bank Business Loan
- DHFL Business Loan
- Federal Bank Business Loan
- IndusInd Bank Business Loan
- State Bank of India Business Loan
- Punjab National Bank Business Loan
- IDFC FIRST Bank Business Loan
- Hero FinCorp Business Loan
- IDBI Bank Business Loan
- Digikredit-SME Corner Business Loan
- Kotak Bank Business Loan
- Loantap Credit Products Private Limited Business Loan
- Poonawalla Fincorp Limited Business Loan
- Ujjivan Small Finance Bank Business Loan
- Shriram Urban Co Operative Bank Limited Business Loan
- Muthoot Finance Ltd Business Loan
- Piramal Housing Finance Business Loan
- Fullerton India Business Loan
- RBL Bank Business Loan
- Standard Chartered Bank Business Loan
- Tata Capital Financial Services LTD Business Loan
- Tata Capital Housing Finance Limited Business Loan
- Housing Development Finance Corporation Business Loan
- IIFL Finance Business Loan
- DCB Bank Business Loan
- Edelweiss Financial Services Business Loan
- INDIFI Business Loan
- INTELLEGROW Business Loan
- Aditya Birla Finance Limited Business Loan
- HDFC Sales Business Loan
- Capri Global Business Loan
- Capital First Ltd. Business Loan
- NeoGrowth Business Loan
- L&T Finance Business Loan
- UGRO Capital Business Loan
- Deutsche Bank Business Loan
- Clix Capital Business Loan
- FT Cash Business Loan
- HSBC Business Loan
- Lending Kart-Nbfc Business Loan
From refinancing to reducing your interest, we have the answers right here.
Does the Bank of India provide a business loan at the best rate?
Bank of India has an appreciative business loan interest rate. The rate of interest starts from 9.7% based on the scheme.
What is the interest rate of a business loan in the Bank of India?
The rate of interest starts from 9.7% based on the scheme.
What benefits does the Bank of India provide on a business loan?
The most appreciated benefit of the Bank of India business loan is that each scheme aims to assist the various needs of a business.
Does the Bank of India have a fixed interest rate on a business loan?
No, the Bank of India does not have a fixed interest rate on a business loan.
What documents the Bank of India requires for a business loan?
Documents acting as proof of residence and identity have to be submitted.
How to apply for a business loan in the Bank of India online?
You will have to visit the official website of the Bank of India in order to apply for a business loan online.
How to check business loan Status in the Bank of India?
To check the status of your business loan in the Bank of India, you must log in to your account with the Bank of India.
Does the Bank of India check for CIBIL Score for a business loan?
Yes, Bank of India checks for CIBIL Score for a business loan.
What is the maximum business loan amount I can get from the Bank of India?
The maximum business loan amount you can get from the Bank of India is INR 5 crore.
What are the KYC documents I will have to submit to apply for a business loan from the Bank of India?
You will have to submit documents acting as identity proof and residence proof.
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