Indian overseas Bank was founded in the year 1937 with the main objective to establish foreign exchange business across the globe. With the nationalization of the bank, it has developed a network within the country reaching out to the rural areas of the country. Along with this the bank has presence in 5 other countries also. The bank has a variety of financial products and banking services to offer to its customers. Personal banking, corporate banking, NRI Accounts, Rural banking, etc., are some of the financial products and banking services offered by the bank. Depending on the individual need of the customer he/she can choose from this array of products. Business/ 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.
Indian Overseas Bank (IOB) Business Loan Schemes
Following are the business loans offered by the Indian Overseas Bank:
|Loan Scheme||Eligibility||Amount||Tenure||Processing Fees||Other Benefits|
|MSME Loan/ Mudra loan||All micro, small and medium firms that are going to start or have started their business||Shishu Loan: Up to Rs. 50,000
Kishor Loan: Rs. 50,000 to Rs. 5 Lakh
Tarun Loan: Rs. 5 Lakh to Rs. 10 Lakh
|To be repaid in suitable instalments||As per the lending institute||Loans of up to 10 lakhs are collateral free|
|IOB Micro One||· The scheme is not applicable to the existing borrowers.
· All new connections under Micro Sector can avail for this loan facility.
· Micro enterprises with original investment in plant and machinery of up to Rs. 25 lakhs and in equipment of up to Rs. 10 lakhs.
|Maximum Rs.50.00 lacs (Cash Credit + Term Loan with a ceiling of
Rs.22.50 lacs for Term Loan)
|84 EMIs for Term Loan (for combined facility as well)
Cash Credit to be renewed annually
|Rs. 1000 -Rs. 5000 depending up on the loan amount||No collateral or third party guarantee to be obtained|
|Engineer Loan||Civil engineers of up to 65 years of age, proprietorship concern, partnership firm and partnership with limited liability||Depends on the category, requirement on case to case basis||Up to 7 years||0.25% of the loan amount subject to a minimum Rs. 5000||No collateral security up to Rs.10 Lakhs|
|IOB MSME Plus||Both manufacturing and service enterprises come under MSME category||Up to Rs. 100 Lakhs||5- 10 years||Depending upon the banking regulation||No collateral or third part guarantee required|
|IOB CA Scheme||· Chartered Accountants (individual or joint), Proprietorship Concern,
· Partnership Firm, Partnership with limited liability.
· In case of firms all partners are treated as co-applicants.
|Rs. 10 lakhs to Rs. 125 lakhs||Up to 10 years||0.25% of the loan amount subject to a minimum of Rs.5000||No collateral security for loan amount of up to Rs.10 lakhs|
|IOB SME Mahila Plus Scheme||· All women who desire to start a unit. They should be at least a graduate and must be in the age group of 21 to 50 years.
· Women professionals in any field can also avail credit under this scheme.
· Either a proprietorship concern or a partnership with women in the lead
· Private limited companies with woman as the managing director/or a director in a key position
· Existing units fully managed by a woman entrepreneur are also eligible under the scheme
|· Composite loan of up to Rs 2 crores for a manufacturing enterprise
· Composite loan of up to Rs 1 crore for a service enterprise
|Up to 10 years||Rs 200 per lac both for working capital and TL with a maximum of
|No collateral security or third party guarantee required for loans of up to Rs.100
|Working Capital Loan||Manufacturer or service provider units who need interim capital to run smooth business can avail for working capital loan.||Depends on the working capital cycle of the unit||Varies on case-to-case basis.||According to regulations of the bank.||No collateral security/ third party guarantee is required in case SME borrowers avail loan up to 10 lakhs.|
|Term Loan||All SME who wants to grow their business in long run where the investment amount is huge and also pay off term is long run can avail for this loan policy. For example purchase of land, plant and machinery, etc.||Usually it is 75% of the value of the fixed assets and the balance amount should be brought by the applicant as margin.
Based on the activity and the quantum of advance, the bank may increase or decrease the margin.
|Depends on the cash generation of the unit and gestation period. Suitable holiday period will be allowed for term loan repayment.||According to regulations of the bank and the base rate of the bank the interest rate and the processing fee is charged.||No collateral security/ third party guarantee is required in case of SME availing for 10 lakhs of loan. Above 10 lakhs to 100 lakhs SME that fall under the CGTMSE (Credit guarantee trust for micro and small enterprises trust) category also need not give any collateral security/ third party guarantee to the bank.|