Bank of India is one of the leading commercial banks that has expanded its presence substantially in the last few years, nationally as well as internationally. Bank of India provides a range of banking and financial products to its customers, that includes various types of MSME loans to individuals, proprietors, firms and companies.
Types of MSME Loans from Bank of India - 2020
| Loan Types / Categories | Star Laghu Udyami Samekat Loan | Star SME Liquid Plus | Star SME Contractor Credit Line |
| Min. Loan Amount | Rs. 5 lakh | Rs. 10 lakh | Rs. 10 lakh |
| Max. Loan Amount | Rs. 1 crore | Rs. 5 crore | Rs. 5 crore |
| Interest Rate | 10.20% onwards | As per applicant’s profile | As per applicant’s profile |
| Repayment period | Max. up to 5 years | Max. up to 7 years | As per loan amount |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges
The enterprises / business owners who wish to get financial assistance from Bank of India can apply for its business loans. These loans can be utilized for business expansion purposes and meeting working capital requirements. Depending on the type of loan, various documents need to be furnished with the bank for assessment of the business and eligibility criteria. After verification of documents, Bank of India may sanction business loans to applicants. Below mentioned are the key loan products offered by Bank of India:
Loan Schemes from Bank of India
Star Laghu Udyami Samekat Loan
The Star Laghu Udyami Samekat Loan is offered to Micro and Small Enterprises, for a maximum repayment period of 5 years, with a moratorium of 3-6 months. The loan is a Composite Loan in the form of Demand/ Term Loan, given for investment and working capital requirements of the small businesses.
Quantum of Loan:
Rural Area: Maximum Amount – Rs. 5 lakh
Semi-urban Area: Maximum Amount – Rs. 10 lakh
Urban Area: Maximum Amount – Rs. 5 lakh
Metro Area: Maximum Amount – Rs. 1 crore
Rate of Interest:
Upto Rs. 50,000: 10.20% onwards
From Rs. 50,000 to Rs. 5 lakh: 11.20% onwards
From Rs. 5 lakh to Rs. 10 lakh: 12.20% onwards
From Rs. 10 lakh to Rs. 1 crore: 12.95% onwards
Documents Required:
- KYC documents
- Deed of Hypothecation CH1/ CH2
- Demand Promissory Note
- Installment letter
- Equitable Mortgage as Primary Security
- Other documents required for demand loans
Star SME Liquid Plus
Star SME Liquid Plus loan is a term loan, given to proprietorship / partnership firm which qualifies to be a SME. The firms need to be doing business for at least 3 years and should be making profit for last 2 years to apply for this loan. The businesses must have entry level credit rating of SBS 5. The loan needs to be repaid through 84 installments, within 7 years with a moratorium of up to 12 months.
Quantum of Loan: Minimum Rs. 10 lakh and Maximum Rs. 5 crore
Rate of Interest: Depends on the prevailing structure of the bank
Documents Required:
- Identity and residence proof along with borrower’s photograph
- Balance sheet/ Profit & Loss statement of last 3 years
- Partnership letter if the applicant is a partnership firm
- MoA and AoA of the company
- Certificate of Incorporation and Commencement of Business
- Copy of Board Resolution for availing loan, if the applicant is a limited company
- Deed of Guarantee No. OD – 194 (if applicable)
- Term Loan Agreement cum Hypothecation Agreement No. IFD – 1 / IFD – 10 / L – 516 (Whichever applicable)
Star SME Contractor Credit Line
The Star SME Contractor Credit Line loan is a line of credit given for meeting the working capital needs of civil contractors, mining contractors, engineering contractors, transport contractors, etc. This line of credit is offered to established proprietorship firms, partnership firms, limited companies, etc. The applicant company must be engaged in doing business for the last 3 years and should have the entry level credit rating of SBS 5.
Quantum of Loan: Minimum Rs. 10 lakh and Maximum Rs. 5 crore
Rate of Interest: Depends on the applicant’s profile and loan amount
Documents Required:
- Identity and residence proof along with the borrower’s photograph
- Balance sheet/ Profit & Loss statement of last 3 years
- Partnership letter, if the applicant is a partnership firm
- Certificate of Incorporation and Commencement of Business
- Copy of Board Resolution for availing loan if the applicant is a limited company
- P Note LG – 12 Application for Documentary Credit
- Bearer letter LG – 13
- L – 516; LG – 15 Counter Guarantee
- For Fund based; For BG; For LC: IFD – 10
- OD – 194 (if applicable)
Toll Free Numbers: 1800-220-229 / 1800-103-1906
Also Read: Top 6 Government Loan Schemes for Small Businesses
Additional MSME Loans
Apart from these loans, the Bank of India also offers different loans for specific purposes that are as follows:
- SME Auto Express: To SMEs run by individuals/ companies/ societies/ trusts/ firms for purchasing new vehicles
- Star SME Education Plus: To Educational institutions for construction/ repair of the infrastructure and purchase of equipment/ fixtures
- BOI Star Doctor Plus: To qualified individuals, as well as healthcare firms/ companies/ trusts with 51% shareholding of qualified practitioners
- Star Start-up Scheme: To the eligible start-ups for funding innovation/ development/ deployment/ commercialization of new product/ process/ services
- Star MSME E-Rickshaw Finance: To the transport operator individuals/ firms for purchase of new e-rickshaws and battery replacement
Bank of India also offers loans under various Government sponsored schemes, such as PMMY, Stand up India, PMEGP, Pradhan Mantri Credit Scheme, Weavers Mudra Scheme, Cluster Financing, etc.