IDBI Bank is among the leading banks of the country, providing financial products and services including loans, deposits, investment solutions and other banking services to its customers. Individual, Corporate, MSME, NRI and Agriculture are the different sectors where the bank product focuses on and provides solution and services for it. The bank network is spread pan India. The bank also has a 24*7 dedicated customer care facility where all sort of financial solutions are provided to its customers. Among various financial products, IDBI’s loan facility is quite popular among its customers. The bank has loan offers for almost everyone. Here we are to discuss IDBI business loan which is provided to the MSME (Micro, Small and Medium enterprises).
IDBI Business Loan Schemes
IDBI bank has differed business loan schemes catering to the different businesses’ financial needs. Some of the IDBI business loans are as follows:
MSME Finance: IDBI’s MSME Finance is for micro, small and medium enterprises. This loan takes care of the financial requirements of these enterprises. In addition to this, the bank also takes care of all the banking requirements of these enterprises with its wide array of banking products and services. The advantages for the micro and small business to opt for this loan option are:
- It offers complete banking solution under one roof.
- It includes attractive interest rates
- Its process is very smooth and hassle free
- The credit amount is disbursed quickly
Property Power (Loan against property):
This loan scheme caters to the loan requirements of MSME against residential or commercial property owned by them. This loan amount is to be used for the business purposes only. Therefore, it is a type of business loan. Following are the few important aspect of the product:
- Loan eligibility: Any proprietorship, public, partnership and private limited company who have been in business for the last 3 years can apply for this loan.
- The loan can be term loan/ overdraft limit depending on the need of the business.
- Loan amount: The minimum loan amount offered under this loan type is Rs. 5 lakhs and the maximum loan amount can be of up to Rs. 500 lakhs.
- Loan tenure: The repayment period for term loan is up to 7 years and for the overdraft facility is 12 months.
- Processing fee: The banks charges up to 1% as the processing fee for this loan.
- Interest rate: The rate of interest applicable on the loan scheme depends on the bank and the applicant’s credit profile, business model and other such factors.
Loan to small road and water transport operator
This loan scheme caters to the loan requirements of road and water transport operators. With the help of this loan scheme, these small transport operators can acquire vehicles/vessels for their business. Following are the details of the product:
- Loan eligibility: All passenger/ goods transport vehicles like taxis, auto rickshaws, trucks, motor-buses, and other commercial vehicles. It also caters to the monetary needs of small refrigerated vans, bulk carriers for carrying petroleum/edible oil. Water transport units such as small boats, launches, etc. are also eligible for the loan scheme. Borrowers must have relevant experience in transportation business.
- Loan facility: Term loan, bank guarantee and over draft/cash credit.
- Loan amount: 1 lakh to Rs. 200 lakhs
- Loan tenure: For term loan, the repayment period is of up to 5 years and for overdraft facility, cash credit and bank guarantee, the repayment tenor is of 12 months.
- Processing fee: The bank charges 1% as processing fee.
- Interest rate: The rate of interest varies from one case to another.
Sulabh Vyapar Business Solutions
: This loan scheme caters to the financial need of the retailers, wholesalers and traders. Any individual or a firm (partnership or proprietorship) engaged in the business of buying and selling of goods is eligible for this business loan scheme. Following are the few vital points of the product:
- Loan eligibility: Wholesale and retail traders, dealers and distributors, etc.
- Loan amount: Up to Rs. 500 Lakhs
- Security: The Hypothecation of stocks, receivables and assets financed by bank are taken as security by the bank. As collateral, the bank accepts the immovable commercial or residential property and provides loan amount of up to 90% of the property value
- Processing charges: The bank charges processing fees of up to 1%.
- Interest rate: The rate of interest applicable on the loan scheme varies from one case to another.
Vendor finance: All manufacturing units require finance at two stages of the goods production, at the start of manufacturing process and another after the end of the manufacturing process. This loan scheme by IDBI bank caters to the monetary needs of a vendor’s business. The various points of the product are:
- Loan eligibility: All vendors of large corporates or OEMs (Original Equipment Manufacturers) are eligible to apply for this loan scheme.
- Loan facility: CC/ OD, letter of credit, finance against invoice or bill discounting.
- For Working Capital: Hypothecation of entire current assets
- For Term Loan: First/Specific Charge on Assets created out of Bank finance/entire fixed assets
- Bill discounting: Accepted Bill / invoice by the authorised officials of OEM/Corporate
- Guarantee: Personal Guarantee of promoter/directors, as applicable
- Processing fee: The processing fee is as per the bank’s set guidelines
- Interest rate: The interest rate varies from one case to another
General credit card loan (IDBI GCC)
This loan scheme is for all the individuals who are engaged in non farming entrepreneurial activities. The bank provides both term loan and CC facility under this loan scheme. The loan amount can be taken between Rs. 50,000 and Rs. 5 lakhs. The tenure of the term loan is up to 5 years and for CC is of 12 months.
IDBI Mudra Loan
The vital points for the product are:
- Loan eligibility: All individuals and small enterprises who are engaged in non farming entrepreneurial activities are eligible for this loan scheme.
- Loan facility: Term loan and CC/Overdraft
- Loan amount: Up to Rs. 10 lakhs. There is no minimum loan amount.
- Loan tenure: For term loan, the repayment tenure is of up to 5 years. In case of OD and CC limit, the loan repayment tenure is of 12 months, repayable on demand
- Security: No security is required in this type of loan
- Processing fee: No processing fee is charged on loans up to Rs. 5 lakhs. On loans above this amount, a processing fee of 0.50% is charged
So these are the types of business loans offered by IDBI Bank.