ICICI Bank Business Loan

ICICI Bank is a leading private sector bank in India. It caters to individuals, startups, as well as existing businesses and offers business loan interest rate from 18% onwards per annum.

ICICI Bank Business Loan Interest Rate, Fees & Charges – 2021

Note: The above-mentioned interest rate, fees and charges may change and shall depend on the sole discretion of the ICICI bank and RBI.

To provide financial assistance to corporates and Small and Medium Enterprises (SME), ICICI Bank offers a wide range of business loans, which are mainly categorized into three parts:

ICICI Bank Business Financing

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 ICICI bank MSME loans in detail.

1. Working Capital Finance:

This 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 ₹ 2 Crore under the CGTSME scheme

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

3. GST Business Loan

This type of ICICI Bank 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
• Overdraft amount of Rs. 2 crore

You can directly download the application form from the 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 amount of Rs. 15 Lakh for existing customers and Rs. 10 Lakh for new customers can be availed
• Minimal documentation is required
• Borrowers do not need to pay any foreclosure/prepayment charges

Existing account holders can log in 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 Business Loan – Customized Solutions

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 Entities 

This 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. SuperBiz: Flexi – Credit for Business

To meet working capital requirements of individuals and enterprises, ICICI bank offers various funding options to MSMEs, such as Letter of Credit (LC), Overdraft (OD), Cash Credit, Gold Metal Loans, Bank Guarantee (BG), Foreign Exchange facilities and Loan against Mutual Funds.

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.

3. 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).

Features:

• Under CGTMSE, cash credit and term loans of up to ₹ 2 Crore can be availed
• Sole Proprietorship Firms, Public and Private limited Companies, Partnership Firms are eligible to avail this type of loan
• MSEs excluding retail traders are also eligible to avail loans offered under CGTMSE Scheme

4. 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.

1. • There is no requirement of audited financials
   • Loans or Overdraft Limits are granted on the basis of past transaction history
   • Loans up to ₹ 1 crore can be availed
   • Business should be at least 3 years old

5. 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.

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.

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ICICI Bank Business Loan Eligibility Factors

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:

• Age of the applicant
• Applicant’s creditworthiness and CIBIL score
• Nature of business
• Business Tenure, Existence & Location
• Business Profitability
• ITR and Sales Tax Returns
• Existing working capital loans, if any
• Any other existing loan(s)
• Annual sales/turnover

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

To check the ICICI bank business loan EMI, click on the below button:

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Documents Required for Loan Application

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.

How to track ICICI Business Loan Application Status?

Follow these simple steps to check your loan application status:

Step 1: Enter your loan reference number that you must have received after form submission
Step 2: Enter your Form Number
Step 3: Click on ‘Submit’ to check the status of your loan application

ICICI Customer Care: Toll-Free Numbers

You can call the 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.

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FAQs

Q. What is the business loan interest rate offered by ICICI Bank?

Ans. The business loan interest rate offered by ICICI bank is 18% onwards per annum.

Q. What is the business loan repayment tenure at ICICI Bank?

Ans. The maximum repayment tenure offered by ICICI bank is up to 7 years under CGTMSE scheme.

Q. Is the prepayment option of a business loan possible at ICICI Bank?

Ans. The prepayment or part payment charges depends on the loan products and features attached with them

Q. What collateral is acceptable for your loan facility?

Ans. If it is a secured business loan, the collateral or security can be in the form of commercial or residential property, machinery, equipment, raw materials, inventory, stocks, etc.

Q. Which companies are eligible for business loans?

Ans. Any type of enterprise like private and public limited companies, startups, sole proprietorship, partnership firms, limited liability partnerships, MSMEs, SMEs, Trusts, NGOs, Co-operative Societies, etc. are eligible for business loans.

Q. What are the factors that affect business loan interest rate?

Ans. The interest rate shall depend on applicant’s profile, loan amount, repayment tenure and applicant’s financial stability, repayment capability, creditworthiness, CIBIL score, etc.

Q. Which are the business products in ICICI Bank?

Ans. ICICI bank offers a wide range of business loan products classified in two types, such as secured and unsecured business loans. Under secured business loans, ICICI bank offers working capital loans, loans for import and export, FD overdraft, emergency credit line, etc. Under its unsecured business loan products comes Term Loans, loans under CGTMSE scheme, overdraft facility, etc.

Q. What is the lowest EMI that I can opt from ICICI Bank business bank?

Ans. The lowest EMI depends on your loan amount, interest rate and desired repayment tenure.