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How to Get Business Loan in ICICI Bank - Features, Benefits, Interest Rates, Eligibility

Businesses are able to obtain loans from lending institutions and banks to organizations and individuals who are self-employed. They are generally subject to some fees and interest payments during their loan term. Borrowers can use these loans for a range of purposes related to business, for instance, company expansions and hardware acquisitions etc.

 

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

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ICICI Business Loans

 




 

Businesses are mostly concerned with survival, earning profits, and maintaining the cycle. Unfortunately, the current economic climate has caused many businesses to struggle with sustainability. Consequently, they are seeking assistance from banks, non-banking financial corporations, and other institutions in securing funding for day-to-day operations.

 

Many organizations rely on capital sources to fund their short-term obligations. In order for a business to thrive, it must find the right solution to fit its needs, regardless of the size. Besides limiting a business’s growth, bad decisions can have irreversible effects.

 

The number of options available today makes securing funding for your business much easier than before. A comparison of the various options offered by banks and financial institutions is a good idea to choose the one that suits your business the best.

 

As we move forward, we will explore the variety of services offered by one of the most well-known banks in the country. As part of our research, we will focus on ICICI Bank Business Loans, one among many financial institutions that offer these services. Our discussion will cover its specifics such as its definition, eligibility, rate of interest, and requirements for application.

 

To begin, let’s address the most commonly asked question mentioned below:

 

What are business loans?

 

Businesses are able to obtain loans from lending institutions and banks to organizations and individuals who are self-employed. They are generally subject to some fees and interest payments during their loan term. Borrowers can use these loans for a range of purposes related to business, for instance, company expansions and hardware acquisitions etc.

 

The following business loan types are available from ICICI Bank:

ICICI focuses mainly on micro, small and medium businesses (MSMEs) and big companies that are in need of financing for major purchases. Individuals, businesses, and other entities can borrow secured or unsecured financing from ICICI Bank.

 

It offers a range of secured business loans, such as working capital finance, term loan, GST business loans, Insta Overdraft, loans for new entities loans without financials, and finance for importers and exporters.

 

Business loans with unsecured terms are available for up to 17% interest. As part of the CGTMSE scheme, ICICI bank offers zero-collateral funding of up to Rs.2 Crores subject to a handling fee of 2% on the borrowed capital.

 

A few of the loans mentioned above are summarized below:

 

Working Capital Finance

Business Loans offered by ICICI Bank are specially formulated to address the operational funding requirements of businesses. The bank offers a range of loan products at favorable terms; moreover, the independent management systems of the bank expedite the loan application process.  A lending solution of such kind may be implemented as follows:

 

  • Cash credit/ Overdraft facility  –  A source of working capital in case of Insufficient funds

 

  • Letter of Credit and Buyer Credit – To facilitate a better trade

 

  • Bank guarantees- Businesses can meet their financial obligations with ease

 

This type of loan is available to production, distribution, and supporting businesses, including individuals working for themselves, partnership firms, Pvt Ltd companies, and businesses operating as limited liability companies. Furthermore, ICICI Bank is open to a variety of securities as collateral, including real estate and securities that have liquidity.

 

Term Loans




ICICI Bank offers term loans to companies looking to buy commercial property or scale their operations. A few of its features are as follows:

 

  • Flexible repayment terms are available to borrowers

 

  • Amounts of loans are based on revenue generated by each company

 

  • For all your business’s financial requirements, you can take advantage of both working capital financing and term loans

 

  • Loan tenure up to 7 years

 

  • Under the CGTSME scheme, borrowers can obtain up to 2 Crores in collateral-free loans

 

GST Business Loan

Working capital requirements of a business can be met through this type of ICICI Bank Business Loan. This loan comes with the following characteristics:

 

  • Financial documents are not required; GST returns to determine the loan amount

 

  • Overdrafts are offered as loans amounting up to Rs. 2 Crore

 

  • Securities with a high liquidity level or commercial or industrial properties can be used as collateral

 

Insta over Draft

You can use this facility to meet your business’ working capital requirements. Applicants must have an existing corporate bank account with the said bank or create a current account to qualify for this credit facility. It comes with these features:

 

  • A quick and easy way to process loans online

 

  • You do not have to provide collateral

 

  • There is a limit of Rs. 15 Lac for current users and Rs. 10 Lac for first-time customers on overdraft

 

  • Documentation is minimal

 

  • Prepayment/foreclosure charges are not imposed on borrowers

 

New Entity Loans 

A new enterprise or newly established business can avail of this ICICI Business Loan to fund their start-up costs. There are many edges to this loan, including

 

  • The loan is available to manufacturers, retail businesses, wholesale businesses, traders (importers and exporters), and service industries

 

  • Businesses that have been in business for 1 year or longer can apply for cash credit, overdrafts, export credit, and unsecured loans

 

  • The company also offers term loans to finance the acquisition of commercial assets and expansion

 

No-financial-report loans

It is a revolutionary solution offered by ICICI Bank for MSMEs. This loan is an excellent choice for small and medium-sized businesses due to its easy documentation process and speedy processing.

 

  • Audited financial statements are not required

 

  • Transaction history is taken into account when granting loans and overdraft limits

 

  • Maximum loan amounts are limited to Rs. 1 Crore

 

  • A company should have been in business for at least 3 years

 

Finance for Importers and Exporters

 Importers and exporters can use this financing solution specifically designed for them. Finance for pre-shipment and post-shipment can be obtained through export credit. ICICI Bank also provides letters of credit for trade facilitation. Foreign currency loans are also offered by the bank as a way to reduce the risk of foreign exchange.

 

Highlights:

Age group25-65 years
Loan amountMinimum 1 Lakh and Maximum 40 Lakh
Lowest EMI per LakhRs. 3540/-
TenureFrom 12 months to 36 years
Payment in partsIt is not permitted
Facility for foreclosures5% EMI only after 6 EMI payments
SecurityBoth secured and unsecured

 

Benefits of ICICI Bank Business Loan:

 

  • There is no need to provide security or collateral

 

  • Term limit – doctors are eligible for 60 months, professionals are eligible for 48 months, and nonprofessionals are eligible for 36 months

 

  • Process is simple and disbursements are quick

 

  • Documentation is minimal

 

  • Affordable interest rates are available for priority sector borrowers.

 

  • Options for convenient repayment

 

  • Unmatched Customer care and assistance

 

Factors affecting loan eligibility for business loans:

 



 

It is possible for prospective borrowers to access ICICI Bank Business Loan eligibility online through ICICI Bank. The next set of credentials will be needed to check your eligibility:

 

  • Applicant’s age

 

  • Creditworthiness of the applicant and CIBIL score

 

  • Business type

 

  • The location, history, and tenure of the business

 

  • Businesses Revenues details

 

  • Returns on the ITR and sales tax

 

  • Pre-existing financial obligations if any should be mentioned

 

  • Other loan(s) already in existence

 

  • Volume/turnover of annual sales

 

  • Upon entering the above information, the maximum amount will appear on the screen.

 

  • Following this procedure, you are able to apply immediately.

 

Interest, Taxes and Fees under the business loan offered by ICICI Bank:

 

Rate of interest

Up to 17% Annual Interest Rate Set for Unsecured Commercial Loans

Up to 10.90% Annual Interest Rate Set for Secured loans

Up to 11.50% Annual Interest Rate Set under the CGTMSE and Stand up India scheme

The rate of interest charged on each loan is established based on a thorough evaluation of the company, its financial status, how much is being borrowed, and its term.

Processing fees

A maximum of 2% (plus taxes where applicable) on approved loan amounts for unsecured financing

A maximum of 0.99% (plus taxes where applicable) on approved loan amounts for secured financing

Other statutory charges, including stamp dutyIn accordance with state laws
Bank Guarantees and Letters of Credit Commission2% commission shall be charged per year pro-rata to tenure and amount of fund-based facility accessed
Commitment feesCharged in accordance with the terms and conditions outlined in the sanction letter
Foreclosure chargesThere may be a charge of up to 5% of the overall allowance, should the loan be transferred to another bank during the period of the loan.  This fee is only applicable if the facility is transferred to another bank. Balance Transfer charges do not apply to regular loans.

 

An application for a loan requires the following documents:

 

Here are some common documents required for business loans from ICICI Bank, which differ for different loan products.

 

  • Primary Applicant’s PAN card or that of the organization

 

  • A properly filled out application form must be submitted along with the passport-size photograph of the applicant

 

  • Identification proof of the applicant – Copy of the Voter ID, Passport, DL, copy of the Aadhaar Card

 

  • Address Proof –DL, Copy of the Voter’s ID, Passport, latest Telephone Bill, Electricity Bill (up to 3 months old), Sales Contract / Bank Record (not older than 3 months) Lease Agreement or other legal documents.

 

  • Proof of ownership of personal or business property

 

  • Verification of Business Performance-Bank Records, Income Tax Returns, Incorporation Certificate, Business License, Participation Agreements, Sales Tax Invoices.

 

  • Documents that have been audited by a Chartered Accountant, such as Income Statement and Cash Statement, accounts payable and receivable for the latest three months, monthly financials and so on.

 

Conclusion:

 

While you’ve got a spread of funding choices at your disposal, you shouldn’t make an impulsive call. An in-depth analysis of the loan options for your business is advised before selecting one. An applicant should take the time to carefully determine which type of financing is best suited to their business profile.  Moreover, the means within which the funds are going to be used must be clearly ordered out in addition.

 

To know more details on SME loans from ICICI Bank, You can email contact@startupyo.com or call at  +918886666821.


Faq's

ICICI bank offers maximum repayment tenure of 7 years under the CGTMSE scheme.

In the case of a secured business loan, the collateral/ security may include commercial or residential real estate, industrial equipment, commodities, assets, shares, and so on.

A loan is a credit facility offered to an individual or credit union with a fixed rate of interest to be paid back within a specified period. Whereas Cash credit is a financing instrument provided by a financial institution to businesses that are offered by way of a credit extension.

In determining the cash credit limit, consideration is given to the borrower’s credit standing, banking relationship, business stability, the ability to pay back, and financial stability.

A bank account associated with the applicant’s name will be used for the repayments and disbursements of the business loan. Payments/repayments are to be processed using the same account used to service existing loan EMIs. Customers can also repay the loan using their main bank account, provided it meets the bank’s requirements.

  • Doctors
  • Architects
  • CAs
  • Company secretary

 

The bank provides working capital finance for businesses participating in manufacturing, service or trade segments, which include:

 

  • Firms that operate as sole proprietorships
  • Partnering firms
  • A private limited company
  • Corporations limited by shares

Loans can be accessed quickly and processed quickly with decentralized systems

  • Ease of execution through easily accessible paperwork
  • A professional and specialized team to meet your needs
  • Low-interest rates, brokerages, and fees
  • With over 3000 branches and anywhere banking, you’ll find it easy to conduct business, collect payments, and pay your bills
  • Dealers
  • Wholesalers and suppliers
  • Producers
  • Sellers
  • Distributors and retail stores
  • Financial statements that have been examined
  • A financial affiliation involving ICICI Bank or other financial institutions
  • Taxes on Goods and Services (GST) submitted
  • Returns on income (ITR) submitted
  • Gross revenue of the business
  • Pre-existing Home Loan if any 
  • Pre-existing Auto Loan if any