Bank of India Business Loan 2022

Bank of India is one of the leading public sector banks in India that has enlarged its existence significantly in the past years, nationally and globally. Bank of India extends a wide array of banking and financial products to its users including several types of business loans to individuals, businessmen, and enterprises.

The bank renders business loans in India ranging from Rs. 5 lakhs to Rs. 5 crores to MSMEs under its several types of business loans.

There are several types of business loans that Bank of India extends, although, the most common and popular types among those are the below three kinds. Before getting into the details of them, let’s take a look at the highlights:

Note: Aforementioned interest rates, fees and charges may change periodically in compliance with the bank’s and RBI’s policies.

Star Laghu Udyami Samekat Loan

Under the Star Laghu Udyami Samekat Loan scheme, Bank of India extends business loans to Micro and Small Enterprises with the maximum repayment tenor of 5 years with a moratorium of 3 to 6 months.

This business loan scheme is a composite loan in the form of demand/term loan, extended for the purpose of meeting investment and working capital requirements of small businesses. The loan quantity is determined and extended to a certain borrower as per the following criteria:

• Rural Area – up to Rs. 5 lakhs
• Semi-urban Area – up to Rs. 10 lakhs
• Urban Area – up to Rs. 5 lakhs
• Metro Area – up to Rs. 1 crore

The Bank of India business loan interest rate varies from scheme to scheme as per the following criteria:

• Up to Rs. 50,000 - 10.20% p.a. onwards
• Rs. 50,000 to Rs. 5 lakhs - 11.20% p.a. onwards
• Rs. 5 lakhs to Rs. 10 lakhs - 12.20% p.a. onwards
• Rs. 10 lakhs to Rs. 1 crore - 12.95% p.a. onwards

To avail business loan under the Star Laghu Udyami Samekat Loan scheme from Bank of India, you need to furnish the following fundamental documents at the time of application:

• KYC documents
• Demand Promissory Note
• Deed of Hypothecation CH1/CH2
• Equitable Mortgage as Primary Security
• Instalment letter
• Other documents needed for demand loans

Star SME Liquid Plus

• Under Star SME Liquid Plus Loan scheme, Bank of India extends term loan to proprietors/partnership firms who stands out to be an SME.
• The business should be in operations for at least 3 years and should be generating profit for the last 2 years to be eligible for this loan scheme. The businesses must possess the entry-level credit rating SBS 5.
• The loan is required to be paid off across 84 instalments, within the 7 years of repayment tenure with a moratorium of up to 12 months (1 year).
• The loan quantity ranges from Rs. 10 lakhs to Rs. 5 crores. The rate of interest is determined on the bank’s typical structure.

To avail business loan under the Star SME Liquid Plus loan scheme from Bank of India, you must possess the following fundamental documents:

• Proof of applicant’s identity and residence
• Applicant’s recent photographs
• Last 3 years’ balance sheet/profit & loss statement
• Partnership letter (in case of partnership firm)
• Business’ MoA and AoA
• Incorporation and commencement certificate of business
• Board Resolution’s copy (in case of limited companies)
• Deed of guarantee no. OD – 194 (if applicable)
• Term loan agreement cum Hypothecation agreement No. IFD – 1 / IFD – 10 / L – 516 (if applicable)

Star SME Contractor Credit Line

Under the Star SME Contractor Credit Line Loan scheme, Bank of India extends a line of credit for the purpose of meeting the working capital needs of engineering contractors, civil contractors, transport contractors, mining contractors, etc.

This line of credit is rendered to established partnership firms, limited companies, proprietorship firms, etc. The business must be in operations for the last 3 years and should also possess the entry-level credit rating of SBS 5 to be eligible for the loan scheme.

The loan quantity ranges from Rs. 10 lakhs to Rs. 5 crores. The rate of interest is determined based on the applicant’s profile and loan amount.

To avail business loan under the Star SME Contractor Credit Line Loan scheme from Bank of India, you must possess the following fundamental documents:

• Borrower’s identity and residence proof
• Recent photographs of borrower
• Last 3 years balance sheet/profit & loss statement
• Partnership letter (in case of partnership firm)
• Business’ certificate of incorporation and commencement
• Board resolution’s copy (in case of limited entity)
• L – 516; LG – 15 counter-guarantee
• P Note LG – 12 application for documentary credit
• For fund based; for BG; For LC: IFD – 10
• OD – 194 (if applicable)
• Bearer letter LG – 13

In order to get in touch with the Bank of India’s customer care team to get your query solved associated with business loans, you can reach them through the following contact numbers:

• Toll-free numbers - 1800-220-229/1800-103-1906
• Landline number (India) – 022-40919191

Besides the above-stated business loans schemes, the Bank of India also presents other loans for particular objectives. Some of these are given below:

• SME auto express:- Under this loan scheme, funding is extended to SMEs that are run by individuals/enterprises/societies/trusts/firms to help them acquire new vehicles.

• Star SME education plus:- Under this business loan scheme, funding is extended to educational establishments to help them meet the requirements associated with construction/repair of the infrastructure and purchase of equipment/fixtures.

• Star doctor plus:- Under this loan scheme, funding is extended to qualified individuals as well as to medical companies/trusts with 51% shareholding of qualified practitioners.

• Star start-up scheme:- Under this business loan scheme, funding is extended to the eligible start-ups to help them meet their innovation/development/deployment/commercialization objectives of new products/processes/services.

• Star MSME e-rickshaw finance :- Under this loan scheme, funding is extended to the transport operator individuals/businesses to help them purchase new e-rickshaws and replace the battery.

In addition to these business loan schemes, Bank of India also offers loans under various Government sponsored schemes, i.e., PMEGP, PMMY, Pradhan Mantri Credit Scheme, Stand up India, Weavers Mudra Scheme, Cluster Financing, etc.