Please Note: Indian Overseas Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Indian Overseas Bank offers MSME loans to Enterprises engaged in the manufacture or production of goods pertaining to any industry and enterprises engaged in the services sector.
Depending on the individual need of the customer he/she can choose from this array of products. MSME (Micro Small or Medium Enterprises) loan is one of the financial products which plays a crucial role for the enterprises/ firms who want to develop their business or transfer the liability, or want money for working capital, etc.
Best SME/MSME Loan offers are just a click away Apply Now
Indian Overseas Bank Business Loan – Features & Fees
The business loan interest rates offered by Indian Overseas bank shall depend on the applicant’s profile and business requirements.
|Interest Rate||Depends on business requirements|
|Loan Amount||No Minimum Limit to borrow and Maximum is up to Rs. 1 crore, can exceed as per business requirements|
|Repayment Tenure||From 12 months – 5 years|
|Collateral||No Collateral for loan amount up to Rs. 10 lakh|
|Processing Fee||From Nil – 4% of the loan amount|
|Foreclosure Charges||From Nil – 5% of the outstanding loan amount|
|Part-payment Charges||From Nil – 4%|
|Loan Cancellation Charges||Varies from bank to bank|
Related Post: Compare Business Loan Interest Rate with other banks
Types of Business/MSME loans offered by IOB
- PSB Loans in 59 minutes: Loans up to Rs. 5 crores get approved within 59 minutes
- Mudra loan: Loan up to Rs. 10 lakh offered with its 3 categorized loan schemes named Shishu, Kishor, and Tarun
- Term Loan: Term Loans are used for purposes like the acquisition of fixed assets, such as land, building, plant, and machinery. Term loans are also used for setting up new industrial units or expansion or upgradation of existing units. Margin: Up to 75% of the value of fixed assets
- Working Capital Loan: Available in the forms of a letter of credit, cash credit, bill limit, Letter of Guarantee, etc. No collateral is required for a total credit limit up to Rs. 10 lakh for SME borrowers. Collateral or security may get waived off in certain cases for amounts up to Rs. 200 lakh in which the limit shall be covered under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE)
- MSME Credit Scheme
- SME Loans for individuals and SMEs
- SME loans for CAs, Doctors, Engineers, and Women Entrepreneurs
- Loans under Standup India Scheme
- Loans for self-employed professionals include engineers, accountants, medical practitioners, dental surgeons, engineers, craftsmen, construction contractors, management consultants, etc.
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 30% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||10.50% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 26% p.a.||Apply Now|
|Lendingkart||12% - 27% p.a.||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||9% - 36% p.a.||Apply Now|
Note: Business loan interest rates are updated as on January 2023.
Additional Fees & Charges
|Processing Fee||Nil, up to Rs. 25,000
Above Rs. 25,000 – Rs. 2 lakh: Rs. 600
Above Rs. 2 lakh to Rs. 150 crore: 0.50% of the loan amount, Max. Rs. 55 lakh
|CIBIL report||Rs. 100 for individual & Rs. 700 for commercial|
|CERSAI||Rs. 150 for more than Rs. 5 lakh|
|No due certificate||Nil|
|Pre-payment or closure charges||Nil|
|Documentation charges||Nil upto Rs. 2 lakh|
Note: The above-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.
Best Working Capital Loan offers from leading banks Apply Now
IOB Loans under the CGTMSE scheme
- Maximum loan amount up to Rs. 1 crore
- Term Loan and Working Capital can be availed under the CGTMSE scheme
- Only the manufacturing and services sectors are eligible to avail loan
- Guarantee cover: Maximum up to 75% and up to Rs. 62.50 lakh
Applicants have to pay one time guarantee fee of 1% of loans up to Rs. 5 lakh and 1.5% for loans above Rs. 5 lakh to avail loans under the CGTMSE scheme.
Applicants are also required to pay Annual Service Fee of 0.50% for loans up to Rs. 5 lakh and 0.75% for loans above Rs. 5 lakh.
Indian Overseas Bank – Customer Care Numbers
1800-890-4445 / 1800-425-4445
Q. What are the rates of interest Indian Overseas Bank charge for business loan?
Ans. The business loan or MSME loan interest rate offered by Indian Overseas Bank shall depend on applicant’s profile and will rely on the bank’s Marginal Cost Lending Rate as per RBI.
Q. How much business loan can I get from Indian Overseas Bank in India?
Ans. The minimum loan amount can be availed up to Rs. 25,000 and maximum can exceed up to Rs. 150 crore and even more depending upon business requirements.
Q. What will be the lowest EMI of a business loan per lakh from Indian Overseas Bank?
Ans. The lowest EMI of a business loan shall depend on various factors like loan amount, repayment tenure and interest rate.
Q. What is the minimum and maximum tenure for a business loan in Indian Overseas Bank?
Ans. The repayment tenure for a business loan shall vary from case to case and depend on the sanctioned loan amount.
Q. Why are the processing fee charges on business loans by Indian Overseas Bank?
Ans. The processing fee changes by the bank is Nil for an amount up to Rs. 25,000 and maximum is 0.20% of the loan amount with a maximum up to Rs. 100 lakh.
Q. What are the charges for the prepayment or pre-closure on business loans from Indian Overseas Bank?
Ans. Nil, is the prepayment or closure charges from the bank.