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 16% onwards per annum.
ICICI Bank Business Loan Interest Rate, Fees & Charges – 2021
|Interest rate||16% p.a. onwards|
|Processing Fees||Up to 2% (plus applicable taxes) of the loan amount|
|Stamp Duty and other statutory charges||As per applicable laws of the state|
|Commission on Letters of Credit and Bank Guarantee||Up to 2% p.a. commission shall be charged on pro-rata basis based on the tenure and the amount of non-fund based facility being availed|
|Commitment fees||To be charged as per the termed and conditions mentioned in the sanction letter|
|Foreclosure Charges||To be charged as per the termed and conditions mentioned in the sanction letter|
|Business Financing||Customized MSME Solutions|
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 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 ICICI Bank website and submit it at the nearest branch along with valid documents.
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 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 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.
|SuperBiz: Flexi – Credit for Business – 2021|
|Interest Rate||Depends on business requirements|
|Interest rate||Varies from case to case|
|Loan Amount||Up to Rs. 15 crore|
|Collateral||Residential, commercial or industrial properties|
|Working Capital Facilities of||Cash Credit, Overdraft, Export Credit / LC / BG and Trade Finance|
|Interest to be paid||Only on utilized 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.
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).
- 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.
- 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: