When you run your own business, you understand very well that it is no child’s play. The responsibilities on your shoulder are unending. Your shelves always need to be well-stocked. You may constantly need to buy raw materials, get new equipment, pay salaries, etc. To help kickstart your business or bring in innovation or expansion, you need some extra financial backing, which is where Business Loans come as the much-needed aid.
Most business people or entrepreneurs today, big or small, are moving away from traditional lending tools. There are much better alternatives available in the market than borrowing from friends and family. Though many financial institutes offer Business Loans, you need to be sure that the company you take a business loan from is the best available option that you have. Therefore, when it comes to taking a Business Loan, an ICICI Business Loan is an option worth considering. Before we go into detail about ICICI Bank Business Loan, let us take a quick look at the features that make it one of the best Business Loans:
The eligibility criteria are generally based on whether the applicant is salaried or self-employed. Let us take a look:
Criteria |
Self Employed |
Age |
25 years for Doctors 28 years (other self-employed) Maximum age: 65 years |
Turnover |
Minimum: Rs. 40 Lakhs for non-professionals Rs. 15 Lakhs for professionals |
Minimum Profit |
Rs. 2 Lakhs for self-employed/ Proprietorship Firm Rs. 1 lakh for non-professionals |
Business Stability |
In prevailing business for at least 5 years For Doctors: 3 years |
Criteria |
Salaried |
Age |
23 years to 58 years |
Net Salary |
A monthly income of Rs. 30,000 |
Total number of years in the job |
2 years |
Years in the present residence |
1 year |
Given below is a table showing the interest rates and other charges applicable on ICICI Business Loans:
Charges |
Details |
Interest Rate (Largely depends on the assessment of business, loan amount and the term)
|
For secured facilities: Up to Repo Rate +6.0 %(Non-PSL)
|
Processing Fee |
Up to 2% of the facility amount + taxes |
Stamp Duty charges |
As applicable |
Commission on Letters |
Up to 2% per annum |
Commitment Charges |
As per the mentioned terms and conditions |
Foreclosure Charges |
As per the mentioned terms and conditions |
ICICI Business Loan EMI Calculator is a very useful and effective online tool that allows you to get a fair idea of the EMI that you would have to pay for a specific loan amount. It is a free tool that you can use as many times as you wish. You can change the variables to see how increasing or decreasing one can affect the amount you need to pay.
For example, if you have a set budget, you can tweak the number of years or the loan amount so that the Business Loan can be used in the most optimal way possible.
Applying for an ICICI Bank Business Loan is a simple process. You can visit the ICICI company page and go to the ‘Business Loan’ section. Here you would have to select the Business Loan option to wish to opt for. In case you aren’t sure, you can read about each option and decide what the most suitable option for you is.
When you make the selection, a short application form will appear in front of you. You would have to enter your personal and contact details. You would also have to submit the required documents.
In case you do not wish to apply for an ICICI Business Loan online, you can do so offline as well. Visit the nearest branch office, fill in the application form and submit it along with the other required documents with the authorised executive.
To check your loan application status, you can either visit the branch or speak to a customer care executive. However, an easier way is to do it online. Visit the official website, go to Business Loans and then go to ‘Loan application’. You would be asked to enter your Form Number and then click ‘Submit’. You would then be able to see your application status.
ICICI Bank Business Loan interest rate largely depends on the assessment of the business, loan amount, and repayment term. However:
For secured facilities, the rates are: Up to Repo Rate +6.0 %(Non-PSL)
For facilities backed by CGTMSE, the rates are: Up to Repo Rate + 7.10%
In the case of a secured Business Loan, the security or the collateral could be a residential or commercial property or machinery or raw material or equipment or stocks.
When you have a Business Loan from ICICI, there are no foreclosure charges that are levied. There is a possibility of some previously agreed upon charges depending on the terms and conditions of the loan.
Any one of the following is eligible to apply for ICICI Bank Business Loans:
Partnership Firm
Sole Proprietorship Firm
Private Company Limited
Public Company Limited
The repayment tenure is up to 7 years.