BOI Business Loan

Bank of India offers business loan provides flexible finance solutions for entrepreneurial or startup needs. Their MSME loans are structured to support individuals, proprietors, firms, and companies, fostering innovation, development, and the commercialization of new products, processes, or services driven by technology or intellectual property.

Various MSME schemes ensure that your business has the financial backing needed for sustainable growth. However, before you proceed further, check all the information about the MSME Loan familiarize yourself more with the MSME & Mudra loan.

Know more about BOI business loans, to make informed decisions and pan your business operations based on your financial need and available personalised solutions.

BOI Loan Fees & Charges

It's important to understand these fees and charges before applying for a loan to avoid any surprises and to make an informed decision. BOI Fees & Charges refer to the costs associated to loan while availing from BOI bank.

Types of BOI Business loans

This section provides you in-depth understanding of various schemes provided by BOI:

BOI Business Loans for New Business

BOI supports the innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property, in alignment with the startup scheme. Here are the schemes that come under the category:

Start-up India Loan Scheme

• Purpose: Funding support to eligible start-ups recognised as per Govt.policy
• Key Features: Attractive interest rates, relaxed collateral norms, flexible repayment options, and mentorship support.
• Loan Amount: About Rs10 Lakhs

Pradhan Mantri Mudra Yojana (PMMY)

Objective:To facilitate the establishment and upgrading of micro-business enterprises in manufacturing, processing, trading, service sector, and specified allied agricultural activities.

• Interest Rate:As per the extent guidelines of the bank.
• Total Loan amount:You can avail Maximum Rs. 10 lakhs.
• Repayment Period:Maximum 36 months for Demand Loan
• Collaterals: Not required

PSB Loans in 59 Minutes scheme

The PSB Loans in 59 Minutes scheme is an online platform that aims to support the financing needs of self-employed individuals seeking swift business loans. Here are the highlights of the scheme, you can also refer to our dedicated PSB Loans in 59 Minutes webpage for a more comprehensive understanding.

• Interest Rate:Range: 6.8% to 21%
• Tenure:1 to 15 years
• Loan Amount:Mudra Loan: Up to ₹10 Lakh
• MSME Loan: Up to ₹5 Crore
• Processing Fees: 0.1% to 6%
• Digital Approval Payment (INR): ₹1,000 + GST

BOI Business Loans for Existing Business

Bank of India (BOI) offers a range of services, including working capital finances, term loans, and trade finance, to support the expansion and growth of existing businesses.

STAR MSME GST PLUS

• Objective: Meeting the need-based working capital requirement for trading, services, and manufacturing businesses.
• Quantum of Loan: Rs 10.00 lakhs- 500.00 lakhs.
• Security: Hypothecation of Stocks and book debts (up to 90 days).
• Collateral: Minimum CCR of 65% (where CGTMSE is not applicable).

STAR ASSET-BACKED LOAN

• Purpose: Providing working capital for building current assets.
• Loan to Value: Max up to 60% of the Market value of Residential properties.
• Repayment: Maximum repayment tenure: 15 years.
• Security: First charge on unencumbered assets of the company/firm.
• Collateral: Suitable collateral to maintain asset cover of 1.50.
• Insurance: Comprehensive insurance for assets charged to the bank covering various risks.

STAR SME CONTRACTOR CREDIT

• Purpose: Meeting working capital needs.
• Loan to Value: Max up to 60% of the Market value of Residential properties.
• Nature of Facility: Line of Credit by way of fund-based working capital limit, Bank
• Loan Amount: Minimum Rs.10 lacs and Maximum Rs.500 lacs.
• Collateral: Suitable collateral to maintain asset cover of 1.50.
• Insurance: Comprehensive insurance for assets charged to the bank covering various risks

Government Guarantee Schemes

Here are the government-guaranteed schemes facilitated by BOI, providing a safety net for emerging businesses, and boosting confidence in financial transactions and ventures:

CGTMSE - Credit Guarantee Fund Trust for Micro and Small Enterprises.

• Purpose: To facilitate credit access for Micro and Small Enterprises (MSEs) without requiring collateral or third-party guarantees.
• Quantum of Loan: Maximum loan amount: Up to ₹5 crores
• Guarantee coverage: Up to 75% for loans up to ₹2 crores
• Up to 50% for loans between ₹2 crores and ₹5 crores
• Loan Amount: Determined by the lender based on creditworthiness, project viability, and other factors.
• Interest Rate: As applicable

To know more on CGTMSE Scheme check the details from the linked page.

CGFMU - CREDIT GUARANTEE FUND FOR MICRO UNITS

• Purpose: Meeting Fund Based (Working Capital / Term Loan) and Non-fund-based (BG/LC) requirements of units/borrowers in a specific cluster.
• Objectives: Framing cluster-based schemes for assisting in a pool of borrowers engaged in a common business activity in a particular geographical area.
• Quantum of Finance: Need-based assessment for individual borrowers in a specific cluster.

CGSSI - CREDIT GUARANTEE FUND FOR STAND UP INDIA

• Purpose: Providing guarantees to loans extended under the Stand Up India scheme.
• Objectives: Guarantee credit facilities of over Rs.10 lakhs & up to Rs.100 lakh sanctioned by Banks and other Financial Institutions under the Stand Up India Scheme.
• Tenure: Loan period as per the sanction proposal.

CEGSSC - CREDIT ENHANCEMENT GUARANTEE SUPPORT FOR STRESSED MSMEs

• Purpose: Provide guarantee coverage for the CGSSD to offer Sub-Debt support in the restructuring of MSMEs. 90% guarantee coverage from the scheme/Trust, and 10% from the concerned promoter(s).
• Nature of Facility: Term Loan to be provided to the promoters of stressed MSME accounts.
• Quantum of Loan: Promoter(s) of the MSME unit will be given credit equal to 15% of their stake (equity plus debt) or Rs 75 lakh, whichever is lower.
• Security: The sub-debt facility sanctioned by MLIs will have the 2nd charge of the assets financed under existing facilities for the entire tenor of the sub-debt facility.

Business Loan Govt Schemes

BOI collaborates with government-sponsored schemes designed for emerging businesses, offering financial support and incentives to foster growth and sustainability in the business sector.

1. PMEGP - Prime Ministers Employment Generation Programme

• Purpose: To generate employment in rural and urban areas by supporting new micro-enterprises.
• Implementing Agency: Khadi and Village Industries Commission (KVIC) at the national level, District Industries Centres (DIC) at the district level.
• Interest Rate: Varies based on current market rates, but generally, concessional rates are offered.
• Loan Amount: Upto Rs. 50 lakh.
• Tenure:18 years or more.
• Subsidy on Project:15% - 35%
• Maximum Project Cost:₹20 Lakh for service and ₹50 Lakh for manufacturing units

To know more on PMEGP Scheme check the details from the linked page.

2. PM Vishwakarma

• Objective: Enable the recognition of artisans and craftspeople as Vishwakarma also provides skill upgrading and support for better and modern tools.
• Loan Details:
• Loan up to Rs. 1,00,000/- at a fixed 5% interest rate in the 1st tranche, repayable in 18 months.
• Loan up to Rs. 2,00,000/- at a fixed 5% interest rate in the 2nd tranche, repayable in 30 months.
• Interest Rate: Fixed at 5%.

3. PMMY/Pradhan Mantri Mudra Yojana

• Purpose: Setting up new/upgrading existing micro-business enterprises in manufacturing, processing, trading, the service sector, and specified allied agriculture activities.
• Objective: Fund the unfunded and bring millions of units existing outside the formal banking fold into the financial system.
• Nature of Facility: Term Loan and/or working capital.
• Quantum of Loan: Maximum Rs. 10 lakhs.
• Security: Asset created out by Bank finance.
• Repayment Period: Max 36 months for Demand Loan.
• Max 84 months for Term Loan, including moratorium period.

4. SCLCSS - Special Capital Linked Credit Subsidy Scheme

Objective: Promote setting up new enterprises by aspiring SC/ST entrepreneurs.

• Eligibility: SC/ST Micro and Small Units in manufacturing and service sectors.
• Scheme Highlights: Capital subsidy at 25% of the term loan sanctioned (Maximum Rs. 25.00 Lakh).

5. Star Weaver Mudra Scheme

• Purpose: For working capital and term loan requirements of weavers.
• Objective: Provide timely assistance to weavers for credit needs, both for investment and working capital.
• Loan Details: Minimum Rs 0.50 lakh, for silk weaving minimum Rs 1.00 lakh, Maximum up to Rs. 5.00 lakh.
• Term Loan Limit:Maximum Rs 2.00 lakh.
• Insurance Cover:Bank may arrange insurance cover for financed assets as per existing norms.

6. PM Svanidhi - Pradhan Mantri Street Vendors Atmanirbhar Nidhi

• Purpose:Restart business halted because of the COVID-19 pandemic.
• Facility Type:Fund-Based Working Capital Demand Loan (WCDL).
• Background:Implemented based on PM Street Vendors Atmanirbhar Nidhi (PM SVANidhi) for all urban street vendors.
• Interest Rate:To be specified.

7. Stand Up India Scheme

• Stand-Up India Scheme: To facilitate bank loans between Rs. 10 lakh and Rs. 1 crore to at least one SC/ST and one woman borrower per bank branch for setting up a greenfield (new) enterprise.
• Eligible Enterprises:Manufacturing, trading, or services sector.
• Non-individual enterprises: 51% shareholding and control with SC/ST or woman entrepreneur.
• Quantum of Loan:Composite loan (term loan + working capital) of up to Rs. 1 crore.
• Interest Rates: As applicable

BOI Healthcare Business Loan

Here is the specialized healthcare scheme to facilitate the development and enhancement of medical facilities, offered by BOI:

STAR DOCTOR PLUS Scheme

• Objective:Meet the financial requirements of medical/healthcare professionals.Expand/ renovate/ modernize existing premises/clinic/nursing home, pathological lab, hospital.
• Nature of Facility & Repayment:Fund-based & Non-fund based.
• For Business Premises (Term Loan):
• Maximum period of 10 years excluding moratorium period.
• Maximum moratorium of 18 months (extendable up to 24 months in need-based cases involving building construction).
• Interest Rate:To be specified by the lending institution.
• Quantum of Loan:The loan amount is determined based on the financial needs for various purposes mentioned, such as premises acquisition, expansion, equipment purchase, etc.
• Collateral:Collateral requirements will depend on the loan amount, risk assessment, and the policies of the lending institution.

Want to know more? Check more on Medical Eqipment Loan from the linked page.

BOI Business Loans Eligibility Criteria

To qualify for a Bank of India business Loan, individuals must meet the following criteria:

• Residency: Applicants should be Indian residents.
• Age: 21 - 65 years.
• Eligible Individuals: Professionals, salaried employees, pensioners, high net-worth individuals, family pensioners, retired employees, and BOI staff members are eligible.
• Income Requirement: Applicants must have a regular and verifiable source of income.
• Credit Score: A good credit score is crucial for loan approval, reflecting the applicant's creditworthiness.

Documents Required for BOI Loans

The following documents for a smooth loan processing experience are:

• Identity Proof and Residence Proof
• Photograph: Borrower/co-borrower and guarantor photographs with signatures attested by their bankers.
• Financial Statements: Balance sheet and profit-loss statement of the last two years for firms/companies.
• Partnership Letter: In the case of partnership firms.
• Company Documentation: Copy of Memorandum and Articles of Association, certificates of incorporation, commencement of business (duly attested), and board resolution for loan availing (for limited companies).
• Vehicle Registration: For borrowers already possessing vehicles, a copy of the Registration Certificate.
• Hypothecation Agreement
• Deed of Guarantee: If applicable.
• Blank Transfer Forms: Duly signed by the borrower for record-keeping.
• Insurance Authorization Letter: Addressed to the insurance company, authorizing them to pay claims directly to the bank.

Benefits of BOI Financing

Bank of India provides quick and hassle-free loan approval, ensuring that customers can access the funds they need in a timely manner. Also, the platform is open to competitive interest rates with trusted choice for individuals & businesses seeking easy and quick access to funds.

Low interest rate

BOI provides best-in-class
interest rate.

Minimal Documenation

Streamline loan application
with minimum paperwork

Apply Online

Get quick access to BOI
business loan in 15 minutes

Tenure

Avail loan under the
most flexible tenure

No Hidden Charges

Avail loan without
any extra penalties.

How to Apply for BOI Business Loan

To conveniently apply for a Bank of India business loan online, follow these quick and easy steps:

• Step 1: Visit the Official Website if Bank of India official website through your web browser.
• Step 2: Navigate to 'Business' from the main tab, locate and click on the 'Business' section to explore the schemes.
• Step 3: Choose a suitable scheme and select the one that best suits your business needs.
• Step 4: On the scheme page, find the 'Apply Now' option and click on it to initiate the online application process.
• Step 5: Fill in the Required Information
• Step 6: Click on 'Apply Online' and complete the application form by providing the details as prompted.

BOI Loan Customer Care Number

For prompt assistance, reach out to the Bank of India through their toll-free numbers: 1800-220-229 or 1800-103-1906. Customers within India can also contact the bank on the landline number (022) 40919191. Experience reliable and responsive customer support for all your banking inquiries and concerns.

Steps to Apply for Business Loan on Buddy Loan

Buddy Loan provides business loan starting at an interest rate of just 11.99% per annum. Follow the steps below to avail the loan now!

• Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
• Step 2: Proceed to the business loan application page. Enter your mobile number and OTP to access the Business Loan Application Page.
• Step 3: Specify Loan amount and Email. Select the Business Loan option.
• Step 4: Choose Business Proof (Yes/ No)
• If ‘Yes’ (If you have a business proof), input both business and personal details.
• If ‘No’ (If you do not have a business proof), select your profession type and enter your personal details.
• Step 5: Provide Income Details and Click 'Submit'