ICICI Bank Business Loan

1. The monetary policies laid down by the Reserve Bank of India.

2. The level of inflation in the country also influences the rate of interest directly.

3. Other economic instruments such as banks, financial institutions, stock market etc. also have a ripple effect on the Business Loan interest rates.

Here are the internal factors:

• Your business financials

It is quite understandable that a business with strong and steady finances would make a better suitor for a loan as the repayments can be assured. Such businesses can get a better deal on the interest rates. No lender would want to lend to a business that may not be able to pay back the money.

• Credit Score of the business

When you or your business has a credit score over 700, it puts you in good standing. However, a score lower than this may make you pay a higher rate of interest. It is also possible that a low credit score becomes the reason for a declined application.

• Type and Plan of Business

Businesses that are considered riskier will have to pay a much higher interest rate than others. What can also affect the rate of interest is the business plan. When your plan is comprehensive and easy to understand, the lender may offer you a better deal.

• Collateral

When bigger collateral is presented by the applicant, the risk taken by the lender decreases considerably, and thus the rate of interest can be lowered.

1. Working Capital Finance

One of the biggest challenges of owning a business is timely finance. As the name suggests, this loan is for the working capital requirements that your business has. Working Capital Finance by ICICI offers features such as cash credit limit and overdraft facility.

2. InstaOD

This option is suitable when you are looking for an instant loan. The disbursement is quick, and you also have the facility to overdraft up to Rs. 15 Lakhs. New customers can avail up to Rs. 10 Lakhs. An interest rate of 16% per annum is charged, and no security or collateral is required.

3. Term Loans

A term loan is most appropriate when your capital needs are bigger such as for setting up a new unit, expanding your industrial unit or purchasing new assets. The repayment tenure is up to 7 years, and under the CGTMSE scheme, you can request a loan of up to Rs. 2 Crores.

4. GST Business Loan

This loan is appropriate if you want financial help without having to undergo the documentation process. This easy and hassle-free loan comes with an overdraft amount of up to Rs. 2 Crores. If you need an overdraft, the assessment need only be on the basis of your GST returns.

5. Customised MSME Solutions

As the name suggests, these loans are best-suited for medium, small and micro-businesses. The borrowers are classified into four groups:

• Loans for New Entities

For people who need to borrow to start off their new business

• Loans without Financials

Such loans can go up to Rs. 2 Crores and can be issued based on the applicant’s earlier transactions

• Collateral Free Loans

Without collateral, you can get a specially designed loan for your business up to Rs. 2 Crores

• Importers and Exporters

ICICI offers special Business Loans for importers and exporters, in foreign currency as well

• Insta-Secured Overdraft Facility

You can get an instant sanction for an overdraft facility with the online loan process

• Industry-Specific Loans

Loans can be taken for:

1. Construction

2. Pharmaceuticals

3. Educational Institutions

4. Information Technology

1. Duly filled and signed Application form

2. PAN of the Primary Applicant

3. Proof of Identity of the applicant (It can be Passport/ Driving License/ Aadhaar Card/ Voter's Identity Card/ Job card issued by NREGA)

4. Proof of Address (Passport/ Driving License/ Aadhaar Card/ Voter's Identity Card/ Utility bills like Telephone Bill /Electricity Bill/ Job card issued by NREGA)

5. Passport-sized photographs 2-4

6. Proof of ownership of Residence or Office

7. Duly audited Balance Sheet/ Profit & Loss Statement of the Business

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