ICICI Bank Business Loan

This category mainly focuses on medium-sized corporates that need small, medium as well as high-ticket financing. Term loans are offered to cover bigger expenses like expansion or starting a new product/service line whereas working capital finance can be taken for day-to-day expenses. Let us talk about these loans in some detail.

1. Working Capital FinanceThis type of ICICI Bank Business Loan is particularly designed to meet the working capital needs of the business. ICICI Bank offers such loans at competitive rates of interest and the decentralized operations of the bank ensure faster processing of loan applications.  Nature of loan can be of the following types:
   • Cash credit limit or overdraft facility
   • Export credit to meet pre-shipment and post-shipment expenses.
   • Letter of Credit and Buyer Credit to ensure timely delivery of goods.
   • Bank Guarantees to help businesses meet financial obligations with ease.

   Companies engaged in manufacturing, trading or services business are eligible for these loans including sole proprietorship, partnership, private limited company and public limited company. Moreover, ICICI Bank accepts multiple collateral options from fixed assets to liquid securities.

   Applicants can download the form, fill it and submit it at the nearest ICICI Bank branch along with relevant documents.

2. Term Loans
   Businesses can avail term loans from ICICI Bank to purchase commercial assets or to expand their business. Given below are some features of this loan:
   • Borrowers can take benefit of flexible repayment tenure.
   • The assessment of loan amount is done on the basis of future cash flows of the business.
   • A combination of working capital finance and term loan can also be taken to meet all financial needs of the business.
   • The loan tenure can be up to 7 years.
   • No collateral is needed for loans up to ₹ 1 Crore under the CGTSME scheme.

   Click here to download application form and submit a duly filled form at the nearest ICICI Bank branch.

3. GST Business Loan
   This type of ICICI Business Loan is beneficial to provide for the working capital needs of a business. Following are a few key features of this loan:
   • There is no need to provide financial documents; loan amount is assessed on the basis of GST Returns.
   • Loan is offered in the form of overdraft.
   • Self-occupied/commercial /industrial property or high-liquidity securities can be put as collateral.
   • Maximum overdraft amount of ₹ 10 Million can be availed.

   You can directly download the application form from ICICI Bank website and submit it at the nearest branch along with valid documents.

4. InstaOD
   This facility can be availed to meet the working capital needs of the business. You must have a corporate banking relationship with the bank or need to open a current account in order to avail this service. A few features of this loan are-
   • Online loan processing makes the procedure easy and quick.
   • There is no collateral requirement.
   • Overdraft up to ₹ 15 Lakh can be availed.
   • Minimal documentation is required.
   • Borrowers do not need to pay any foreclosure/prepayment charges.

   Existing account holders can login to ICICI Net Banking Portal and check eligibility online and avail the loan. Alternately, you can open a current account with the bank in order to avail the service. However, the final decision about overdraft approval lies with the bank. For more details, call 022-42097572.

ICICI Bank offers tailor-made financing solutions for SMEs to grow their business or to start one. Hassle-free application process and varied loan options make this a good option for small businesses. To apply for any of these loans, you can download a common application form from ICICI Bank website, fill the same and submit at the nearest ICICI Bank branch. Do not forget to enclose copies of relevant documents along with your application.

Let us learn about the types of ICICI Bank Business Loans for SMEs.

1. Loans for New EntitiesThis ICICI Business Loan can be taken to fund the establishment of a new enterprise or to provide for the financial needs of a newly established entity. Key aspects of this loan include-
   • Manufacturing, Retail, Wholesale, Trading (Import/ Export) and service industries are eligible for this loan.
   • Cash Credit/ Overdraft/ Export Credit and non-fund based facilities can be availed by businesses that are 1 year or older.
   • Term loans are also offered for the purchase of commercial assets or to fund a business expansion plan.
2. Collateral-Free Loans
   ICICI Bank realized that small business need funds to expand but they do not have enough assets to pledge as collateral with banks. Hence, they have launched these collateral-free loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
   • Avail unsecured overdraft facility of up to ₹ 25 Lakh under the Small Business Loan Scheme by ICICI Bank.
   • This facility can be availed by existing ICICI Bank Customers only.
   • Borrowers need to pay minimum 5% of the utilized limit every month.
   • Under CGTMSE, cash credit and term loans of up to ₹ 1 Crore can be availed.
   • Sole Proprietorship Firms, Partnership Firms, Private limited Companies, Public limited Companies can apply for the loan.
   • MSE and Retail Traders are eligible for the CGTMSE Scheme.
3. Loans without Financials
   This is an innovative product offering by ICICI Bank for Micro, Small and Medium Enterprises (MSME). Convenient documentation process and fast processing make this loan a good choice for MSMEs.
   • There is no requirement of audited financials.
   • Loans are granted on the basis of past transaction history.
   • Loans up to ₹ 50 Lakh can be availed.
   • Business should be at least 3 years old.
4. Finance for Importers and Exporters
   This is a financing solution for Importers and Exporters. They can avail export credit for Pre-Shipment and Post-Shipment finance. For facilitating trade, letter of credit can also be secured from ICICI Bank. To reduce risk related to foreign exchange, the bank also offers loans in foreign currency.
5. Loans for Schools and Colleges
   ICICI Bank Business Loan is also offered to schools and colleges to help them meet different types of financial needs. Usually, loans are offered to such entities against fee receivables. Overdraft facility, bank guarantee and term loans can also be availed for meeting different financial obligations or any expansion needs.
6. Secured Loan for Merchant Establishment against credit card swipes
   ICICI Bank offers this unique business loan to merchant establishments on credit card swipes at the counters. Merchant establishments that are 6 months or older can avail this facility. Overdraft facility and drop-line overdraft can be taken for periods of 12 months and 36 months respectively. Businesses that are 3 years or older can avail term loans up to ₹ 2 Crore under the scheme; new entities can get a maximum term loan of ₹ 50 Lakhs.

ICICI Bank understands that different industries have different financial needs and a different set of financial problems. To help businesses counter the same, they offer specifically designed industry-specific loans.

• Loans for Educational Institutions

ICICI Bank gives business loans to educational institutions to help them grow and expand their horizon. Term loans are offered for the establishment of additional premises. Flexible repayment option and competitive pricing makes it a great financial solution for educational institutions. Loans can also be availed in foreign currency.

• Loans for Pharmaceuticals

ICICI Bank provides financial assistance to pharmaceuticals in the form of working capital loan or cash credit. Cash credit is offered with a charge on current assets and it can be taken for a period of 12 months. Floating rate of interest is applicable on this loan and the borrowers have the flexibility of making a minimum payment every month. A unique offering called Working Capital Demand Loan is also promoted by ICICI Bank.

• Loans for Construction Business

The construction industry in India is scaling new heights and to help them tackle all challenges, ICICI Bank offers tailor-made financial solutions. Loans can be availed in the form of cash credit and bank guarantee.

• Loans for Information Technology (IT) Business

IT Businesses are rapidly growing in the country and ICICI Bank strives to provide financial help to them in the form of business loans. Working Capital Demand Loan in Foreign Currency is offered to companies that have considerable foreign currency inflows. Term Loans are also offered for expansion of the business.

Though the interest rates differ for the various business loans of ICICI Bank, the table given below shows a broad bifurcation.

*The interest rate for each loan is determined based on the assessment of business, financials, loan amount and tenure.

Other Fees and Charges:

ICICI Bank provides a platform for prospective borrowers to come and check their eligibility for ICICI Bank Business Loan online. For checking your eligibility, you may need to enter the following information:

• Number of years in business
• Number of years for which audited financial can be furnished
• Working capital Facility takeover needed
• Existing working capital loan
• Other existing loans
• Total existing loans
• Sales/turnover per year
• Net Profit
• Capital

After you enter the above details, the eligible limit will be shown on the screen. You can directly apply after this procedure.

Though documentation requirements vary for different business loan products from ICICI Bank, here is a list of some common documents that you may need to submit-

• PAN Card of Primary Applicant or of the organization.
• Duly filled application form with passport-size photograph of the primary applicant.
• Identity Proof of the applicant– Voter ID, Passport, Driving License, Aadhaar Card, etc.
• Address Proof –Driving License, Voter’s ID, Passport, Telephone Bill, Electricity Bill (Not older than 3 months), Sale Agreement / Bank Statement (not older than 3 months) Registered Lease Deed, etc.
• Ownership proof of either residence or office.
• Proof of Business Continuity–Bank Statement, ITR, Certificate of Incorporation, Shops & Establishment Certificate, Partnership Deed, Sales Tax Challans, etc.
• Financial Documents of the Business such as Profit & Loss Statement and Balance Sheet (duly audited by a registered Chartered Accountant), book-debt and creditors-statement for latest three months, Periodic Stock, etc.

You can call ICICI Bank Business Loan Customer Care department if you need any additional information about their products. If you are already a corporate/business banking customer of ICICI Bank, you can give them a call and raise any complaint or query.

The table given below shows ICICI Bank Business Loan Customer Care number for some popular locations-