Please Note: IDBI is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Industrial Development Bank of India (IDBI) is one of the leading development banks of the country, providing credit, banking and financial services to its customers. Corporate, MSME, agriculture, NRI are different sectors where is the prime focus of the bank. Further, we would discuss IDBI business loan schemes which are offered to Micro, Small and Medium Enterprises (MSMEs) nationwide.
IDBI Business Loan – Interest Rate & Features – 2021 | |
| Interest Rate | As per business requirements |
| Loan Amount | Up to Rs. 2 crore, can exceed as per business requirements |
| Processing Fee | Nil, uptil Rs. 5 lakh & 1% of the loan amount above Rs. 5 lakh |
| Prepayment Charges | Nil, if own sources and 2% of outstanding amount if way of takeover by other banks |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned charges.
Check and Compare – Business Loan Interest Rate of Top Banks
IDBI Business Loan Schemes
IDBI bank has different business loan schemes catering to different businesses’ financial needs. Some of the business loan schemes are as follows:
1. IDBI Mudra Loan
The vital points for the product are:
- Loan eligibility: All small enterprises and individuals who are engaged in non-farming entrepreneurial activities are eligible for this loan scheme
- Loan facility: CC, Overdraft and Term Loan
- Loan amount: Maximum upto Rs. 10 lakh & minimum Rs. 50,000
- Loan tenure: For the term loan, the repayment tenor is of upto 5 years. In case of OD and CC limit, the loan repayment tenure is of 12 months, repayable on demand
- Collateral: No collateral required
- Processing fee: No processing fee is charged for amounts upto Rs. 5 lakh. A processing fee of 0.50% would be charged on loans above this amount
Know All About: Mudra Loan Scheme
2. MSME Finance
This loan is for fulfilling the financial requirements for Micro, Small and Medium Enterprises (MSMEs). Additionally, the bank would take care of all the banking requirements of these enterprises with its extensive options of banking products and services. The benefits for the micro and small business to opt for this loan option are many. They are:
- It offers wide array of banking solutions under one umbrella
- It includes attractive interest rates
- Its application process is quick and hassle-free
- The amount is disbursed swiftly in the borrower’s account
3. IDBI – MSME Loans for Small Water and Road Transport Operators
This scheme caters to the loan requirements of water and road 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 transport vehicles be it either passengers or goods like rickshaws, trucks, motor-buses, taxis, auto and other commercial vehicles are eligible for loans. Additionally, it caters to the monetary needs of small refrigerated vans, bulk carriers for carrying petroleum/edible oil. Units used in water transport such as small boats, launches, etc. are also eligible for the loan scheme. Borrowers must have relevant experience in transport business
- Loan facility: Term loan, bank guarantee and overdraft/cash credit
- Loan amount: Loan amount can range from Rs. 1 lakh to 200 lakh
- Loan tenure: For the term loan, the repayment tenor is upto 5 years and for overdraft facility, cash credit and bank guarantee, the repayment period is of 1 year
- Processing fee: The processing fee is 1% of the sanctioned loan amount
- Interest rate: The rate of interest varies and differs in various cases
Also Know: How to apply for an MSME business loan and get approval in 59 minutes
4. Vendor Finance from IDBI
All manufacturing enterprises need funds at two different stages of production, at the beginning of the process and another after the end of the process. This loan scheme caters to the monetary needs of a vendor. The various points of the product are:
- Loan eligibility: All large corporates or Original Equipment Manufacturers (OEMs) can apply for this loan scheme
- Loan facility: CC, OD and letter of credit, finance against invoice or bill discounting
- Security
- 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 invoice or bill by the authorised officials of OEM/Corporate
- Guarantee: Personal guarantee of promoter/directors is enough
- Processing fee: As per the bank’s guidelines, the processing fee would be different for different cases
- Interest rate: The interest rate differs on a case to case basis
So above mentioned are the types of business loans offered by IDBI Bank.
IDBI Customer Care Toll-Free Numbers: 1800-209-4324 / 1800-22-1070
FAQs
Q. How much business loan amount can I avail from IDBI Bank?
Ans. The maximum loan amount that can be availed is up to Rs. 2 crore.
Q. How can I check my loan status in IDBI Bank?
Ans. To track your loan application status, click on the below link and mention your 12 digit LATS reference number.
https://www.idbibank.in/track-your-application.asp
Q. Does IDBI provide startup loans for new businesses?
Ans. Yes, you can apply for a startup loan under Mudra Yojana from IDBI Bank.
Q. How to calculate Interest/EMI on IDBI Business Loan?
Ans. To calculate EMI on an IDBI business loan, you need to enter basic loan details on EMI calculator, such as interest rate, repayment tenure and loan amount to get the exact loan EMI to be repaid.
Q. What is the minimum interest rate for an SME loan?
Ans. The interest rate offered by IDBI bank varies from scheme to scheme and depends on applicant’s profile and business requirements.
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