IDBI Bank Business Loan

Having launched its operations in 1964, IDBI Bank provides retail banking services, specialising in industrial finance operations. Through its business loans, it caters to the financial requirements of MSMEs and agricultural sectors.

The IDBI Bank Business Loan is tailor-made to suit the varying business requirements of entities at affordable interest rates between 8.05% and 13.45% p.a. With the IDBI Business Loan, self-employed professionals and small business firms can avail quick funds.

• Here are a few features of the IDBI Bank Business Loan:

• Choose a loan repayment tenure of 1-5 years based on your repayment ability

• Avail up to ₹2 Crores at a nominal IDBI Business Loan interest rate starting from 10.95% p.a. onwards

• Pay only 1% processing fees with applicable service tax when availing an IDBI Business Loan

• Enjoy the benefits of zero foreclosure charges after paying 6 EMI payments

With all these and many more, the IDBI bank business loan has been curated considering the financial needs of various business verticals. Read on to know more.

Starting your company or planning to expand your existing line of business is a common ambition for many. The IDBI Bank business loan offers assistance to all such firms and aspiring individuals.

IDBI business loans are offered to self-employed professionals, MSMEs, and small firms at varying interest rates. Given below is a table for IDBI business loan interest rate and other charges:

**Disclaimer: The above interest rates and charges are subject to change at the lender’s discretion.

With a nominal business loan interest rate in IDBI Bank, this credit facility helps cater to your business requirements. Among its lending options are term loans, cash credits, overdrafts, bill discounting, letters of credit, and bank guarantees.

It is important to calculate your EMIs before you apply for a business loan. With the IDBI Bank business loan EMI calculator, you can compute monthly payments easily and accurately.

All you need to do is enter your loan amount, the interest rate, and the duration of the loan. Just a simple click and you get the EMI amount you need to pay! Besides this, the IDBI Bank Business Loan EMI Calculator is fairly easy to access and is available for use at any time for free.

This calculator helps you estimate EMIs that fit your business’ capabilities, without straining the working capital. It also assists you in determining the amount of loan you may need for your business. This way, you can plan your business budget accordingly.

To avail this loan, you will need to submit the following IDBI Bank business loan documents along with the application: 

• PAN Card of your business, firm, or self

• Any one proof of identity (Aadhaar, PAN Card, Driving Licence, Passport, Voter ID)

• Any one address Proof (Utility Bills, Aadhaar, PAN Card, Driving Licence, Passport, Voter ID)

• Last 6 months’ bank statement

• Proof of Business 

1. Sole Property Declaration

2. Certified true copy of Memorandum & Articles of Association (certified by the Director)

3. Original Board resolution

4. Certified Copy of Partnership Deed

• Proof of Continuation (Trade Licence, Sales Tax Certificate etc.)

• Following CA Certification/Audit, latest ITR with income calculation, balance sheet, and profit & loss statement for the past two years

The following categories of individuals and businesses match the IDBI Bank business loan eligibility criteria:

• You must be at least 21 years and not older than 65 years

• Minimum business operational period of 3 years

• Limited liability company or partnerships

• Private limited company

• Proprietorship firm 

• Partnerships

There are two methods for submitting a loan application for a business, i.e., online and offline modes:

1. Online Mode

To avail an IDBI Bank business loan online, apply using the following steps:

• Step 1: Visit the official website of IDBI Bank.

• Step 2: Fill out the online application form.

• Step 3: Submit copies of relevant documents.

• Step 4: You will now get a call from the bank representatives to schedule an appointment for a meeting.

This way, for an IDBI business loan, apply online or visit the physical branch of the IDBI Bank to initiate the offline process.

Before availing a loan, do a proper assessment so that you can plan your repayment and manage your finances in a better way. Here is a table with different business loan interest rates that you can compare with the IDBI business loan interest rate.

**Disclaimer: The above interest rates and tenure are subject to change at the lender’s discretion.

• Interest rates: When it comes to business loans, you have to consider reducing balance and flat interest rates. With the reducing balance type, your interest and principal components reduce with each EMI that you pay. However, in the flat rate type, you pay the interest on the entire borrowed loan amount.

• Prepayment Charges: Ensure that there are no or minimal prepayment charges when you compare business loans across banks.

• Processing Fees: The loan processing charges should be low as a high loan processing cost only adds to your expenses.

There are certain factors that influence your loan eligibility and approval as different banks assess different criteria. Here's a list of those factors:

• Revenue of your company

• Profits generated by your company

• Cash flow of your business

• Past track record of your business

• Business credit rating, or in the case of a new firm, the owner(s)' credit rating 

• Your business type: Sole Proprietorship, Partnership, Public Limited or Private Limited Company

You can reach the customer service of the IDBI Business Loan section by calling the toll-free helpline number at 1800-209-4324 or 1800-22-1070 (24x7 service).