IDBI Bank Business Loan 2022

Industrial Development Bank of India, popularly known as IDBI Bank, is one of the leading development banks of the country. The bank offers a wide range of credit, banking and financial services to its customers. The bank caters to individual, corporate, MSME, agriculture, NRI customers. IDBI Bank business loan is among various popular banking and financial products extended by the bank. IDBI business loan schemes are developed to cater to financial needs of Micro, Small and Medium Enterprises (MSMEs) nationwide.

IDBI Bank offers business loans under various schemes to cater to different financial needs of micro and small businesses. Here are some business loans schemes:

IDBI Bank Mudra Loan

Small and medium business entrepreneurs engaged in all non-farm income generating activities can avail IDBI Bank Mudra loan facility. 

Key features of IDBI Bank Mudra loan

• Facility: Term loan and overdraft/ cash credit
• Purpose: Term loan is extended for the purchase of equipment/ furniture and other such business requirements. Cash credit/ overdraft can be availed to meet working capital needs of your business. 
• Loan amount: Up to Rs. 10 lakh
• Loan tenure: Term loans for up to Rs. 5 years. Overdraft and cash credit for up to 12 months. 
• Interest rates: Linked to IDBI Bank’s base rate and rating.
• Processing charges: No processing charges for loan up to Rs. 50,000.
• Collateral/ security: No collateral or security required. 

Eligibility for IDBI Bank Mudra loan

Individuals and MSMEs engaged in non-farm activities like manufacturing, services and trading across the country can get Mudra loan from IDBI Bank. 

MSME Finance

Micro, small and medium enterprises (MSMEs) can get financial assistance under this scheme. In addition, the bank caters to other banking requirements of these businesses with a wide range of products and services. 

Benefits of MSME finance to enterprises

• A wide spectrum of banking solutions is available under this scheme.
• Affordable interest rates.
• Instant and hassle-free application process.
• Instant loan disbursal directly in the borrower’s account. 

IDBI small loans for small water and road transport operators

Water and road transport operators can get the loan under this scheme to acquire small fleets vehicles, vessels, etc. for their business.  

Key features of the product

• Eligibility: Borrowers who have relevant experience in transport business can get a loan under this scheme for:
• All good and transport vehicles such as Commercial vehicles, auto-rickshaws, taxi-cars, motor-buses and Truck.
• Small refrigerated vans, bulk carriers for transporting petroleum/ edible oil.
• Water transport units like small boats and launches.
• Facility type: Term loan, bank guarantee and cash credit/ overdraft 
• Loan amount: Rs. 1 lakh to Rs. 2 crore. 
• Loan tenure: For term loans can be availed for up to 5 years. For overdraft, cash credit and bank guarantee, the repayment tenure is 1 year. 
• Interest rates: Linked to bank’s base rates.
• Processing fees: Up to 1% of the loan amount. 
• Collateral/ security: Collateral security in the form of immovable/ liquid security, depending on the nature of the loan. 

IDBI Vendor Finance

Shortage of funds is the primary concern of enterprises involved in the business of manufacturing and supplying of various goods and services. Manufacturers and suppliers need funds especially at two stages of production i.e. manufacturing state and post manufacturing stages. IDBI Bank offers Vendor Finance to cater to financial needs of vendors. 

Features of Vendor Finance

• Loan eligibility: All vendors of large corporates or Original Equipment Manufacturers (OEMs) are eligible for this loan scheme.
• Loan types: Overdraft/ cash credit; letter of credit, bill discounting/ finance against invoice. 
• Security:-

1. Working Capital: Hypothecation of entire existing assets.
2. For Term Loan: First charge on Assets created from bank finance/entire FDs (fixed deposits).
3. Bill discounting: Accepted bill/ invoice by the authorised officials of Corporates /Original Equipment Manufacturers (OEMs)

• Interest rates: Linked to bank’s base rates.
• Processing fees: Depends on the bank’s extent guidelines.

Note: Interest rates and processing charges are subject to periodic change and the lender enjoys sole discretion to finalize it.GST and service tax shall be applicable as per terms and conditions. 

Established in 1964, Industrial Development Bank of India (popularly known as IDBI Bank) is a full-service universal bank. IDBI Bank always strives to understand customer needs and aim at delivering relevant financial solutions and customer services. The bank offers a host of financial products and services across deposits, loans, payment services and investment solutions. IDBI Bank business loan is a key product offered by the bank.