ICICI Bank is a leading private sector bank in India. It caters to individuals as well as businesses and offers business loan interest rate from 13% onwards per annum. 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:
|Business Financing||Customized MSME Solutions||Industry Specific Loans|
ICICI Bank Business Loan: Interest Rate, Fees & Charges
Though the interest rates differ for the various business loans of ICICI Bank, the table given below shows a broad bifurcation.
|ICICI Bank Business Loan Interest Rates|
|For Secured Facilities||For Facilities Backed by CGTMSE|
|Up to Repo Rate + 6.0 % (Non PSL)||Up to Repo Rate + 7.10%|
*The interest rate for each loan is determined based on the assessment of business, financials, loan amount and tenure.
As on 31 May 2020, ICICI Bank’s 6 Month MCLR is 7.70% and 1 year MCLR is 7.75%.
Other Fees and Charges:
|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|
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
- Business Tenure or Existence
- ITR and Sales Tax Returns
- Existing working capital loans, if any
- Other existing loans
- Total existing loans and debts
- Annual sales/turnover
- Applicant’s creditworthiness and credit score
After you enter the above details, the eligible limit will be shown on the screen. You can directly apply after this procedure.
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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.
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How to Apply
To apply for Business loan from ICICI Bank , you can visit the official website of ICICI bank to apply online
or You can visit your nearest ICICI bank’s branch with duly filled application form and all the required documents to apply for business loan.
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 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 these loans in some 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. 20 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.
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.
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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. SME Easy Business Loans
To meet working capital requirements of individuals and enterprises, ICICI bank offers various funding options, such as Letter of Credit (LC), Overdraft (OD), Cash Credit, Gold Metal Loans, Bank Guarantee (BG), Foreign Exchange facilities and Loan against Mutual Funds.
|SME Easy Business Loans – 2020|
|Interest Rate||Depends on business requirements|
|Loan Amount||Rs. 5 crore to Rs. 30 crore on collaterals|
|Collateral||Residential, commercial or industrial properties|
|Working Capital Facilities of||Cash Credit, Overdraft, Export Credit / LC / BG and Trade Finance|
|Loan amount against Debt Mutual Funds||Rs. 1 crore and above|
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).
- 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
- Under CGTMSE, cash credit and term loans of up to ₹ 2 Crore can be availed
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 Customer Care
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-
|Andhra Pradesh: 7306446699||Ahmedabad: 07933446699||Orissa: 9778446699|
|Assam: 8822446699||Bangalore: 08033446699 / 08044456000||Punjab: 9023446699|
|Bihar: 8102446699||Bhopal: 07553344669 / 07554445600||Rajasthan: 9529446699|
|Chattisgarh: 7879446699||Bhubaneswar: 06743344669||TamilNadu: 8695446699|
|Goa: 7304446699||Chandigarh: 01723344669 / 01724445600||Telangana: 7306446699|
|Gujarat: 8690446699||Chennai: 04433446699 / 04444456000||Uttar Pradesh: 8303446699|
|Haryana: 9541446699||Dehradun: 01353344669||Uttarakhand: 8303446699|
|Himachal Pradesh: 9625446699||Delhi: 01133446699 / 01144456000||West Bengal: 9641446699|
|Jammu & Kashmir: 9018446699||Ernakulam: 04843344669||Mumbai: 02233446699 / 02244456000|
|Jharkhand: 8102446699||Gurgaon: 01243344669 / 01244445600||Panaji: 08323344669|
|Karnataka: 9019446699||Hyderabad: 04033446699 / 04044456000||Patna: 06123344669|
|Kerala: 8590446699||Jaipur: 01413344669 / 01414445600||Raipur: 07713344669 / 07714445600|
|Madhya Pradesh: 7879446699||Kolkata: 03333446699 / 03344456000||Ranchi: 06513344669|
|Maharashtra: 7304446699||Lucknow: 05223344669||Shimla: 01773344669|
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 is the interest rate for your loan facility?
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.
Q. What is the business loan interest rate offered by ICICI Bank?
Ans. The business loan interest rate offered by ICICI bank is 13% 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