10 Types of Business Loans from ICICI Bank: Which One You Need?

Updated on: 14 Dec 2023 // 5 min read // Business Loans
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Getting access to the right type of business loan holds utmost importance, whether you are in a sole proprietorship, partnership, or a private or public limited company. Ease of funds is the lifeblood of smooth business operations.

The optimal cash flows are necessary to ensure timely day-to-day activities, sound relationships with stakeholders, inventory & much more. This is why banks and financial institutions also offer different types of business loans for distinct types of business needs.

Unlike other forms of loans, Business Loans are available in both secured and unsecured variants. That is, you can borrow for very short term to long term duration as per your needs. Precisely according to your funds requirements and eligibility, you can choose from a cash credit, overdraft, or term loan option as a Business Loan from your bank.

However, the amount of loan, rate of interest, and charges will vary considerably according to the business profile, vintage, and previous credit history. So whether you are in a manufacturing business, or a service-based, retail, or import and export business, it is important to understand the nature and benefits of each category of loan before you access it.

Let’s walk through different types of business loans from ICICI Bank. Whether you are an ICICI existing customer or a new one, you can access the one according to your precise needs.

ICICI Working Capital Finance

Be it a start-up or an established business unit, consistent funds for day-to-day business needs is very important. ICICI working capital finance comes in handy for any business that needs fast loan for meeting current needs.

You can avail of this loan in the form of a term loan, creditline, & overdraft facility. The facility is available to any firm that is:

  • Sole proprietorship
  • Partnership
  • Private limited company
  • Public limited company

ICICI Bank offers fast processing through a network of 3000+ bank branches. Expect an attractive rate of interest and low charges.

With an approved limit for working capital, you can run your export business with utmost ease. It will ensure adequate credit for pre and post-shipment finance. Working capital limits in the form of non-fund-based facilities also ensure timely delivery of goods. It helps to achieve performance and financial obligations with ease.

Term Loans: Invest in your business

Term Loans are ideal for businesses looking out for funding for expansion or capital investment in the form of plant and machinery or commercial assets. You will pay EMIs for the tenor of loan and it will run pretty similar to any other form of retail loan. You can avail secured or unsecured business term loan.

ICICI Bank offers collateral-free term loans for up to Rs. 2 crore under the CGTMSE scheme. You can avail loan for up to 7 years. The lender will assess your present income and future cash flow situation before approving this loan.

GST Business Loan

With ICICI Bank you can avail a secured Business Loan according to your GST return. You can use any form of property- self-occupied residential, commercial or industrial for the purpose.

You can avail it in the form of an overdraft facility against property for up to Rs 2 crore on the basis of Goods and Services Tax returns. No other financials are required.

It is easy to apply for a business loan on the basis of GST return, without extension financial requirements.

InstaOD (overdraft) facility

ICICI Insta OD is a fast and easy emergency loan for business needs. The financing is available with minimal documentation on the basis of your previous banking transactions. It is a completely flexible and hassle-free loan facility as you can apply for an instant overdraft facility online. ICICI Bank offers

Insta overdraft facility for up to Rs. 15 Lakhs for existing customers and 10 Lakhs for new customers. Some of the benefits of using this facility are:

  • Pay Interest on the utilized amount & not on the entire principle
  • Online & paperless processing of loan
  • Instant access to cash for existing customers
  • Instant sanction for all customers, including new ones. The disbursement to new ICICI customers is processed after account opening
  • Minimal documentation
  • No collateral
  • No commitment charges
  • No prepayment/ foreclosure charges

Customised Business Loans

Whether you are into a manufacturing business, a service provider, a retailer, a wholesaler or a trader, an importer or an exporter, you can apply for an ICICI Customised Business Loan as per your needs. The lender offers tailored Business Loan products for SMEs so that they can borrow according to their needs and repayment capacity. All you need to do is apply for an ICICI Business Loan by filling out the loan form online. The bank representative will contact you and help you avail the best scheme for you.

Loans for New Entities

ICICI Bank offers a loan scheme for new businesses. The enterprise which is in operations for at least 1 year will qualify for this loan. You can avail Business Loan in the form of Cash Credit, Overdraft, Export Credit and non-fund based facilities. In case you need a loan for buying commercial assets and business expansion needs, go for a term loan. The business loan interest rate will be calculated according to assessment of your business profile, past credit history, financial records, loan amount and tenure. Any type of residential or commercial property is acceptable as collateral for this facility.

Collateral Free Business Loans from ICICI Bank

You can apply for cash credit and term loan under CGTMSE loan for up to Rs. 2 crore.

CGTMSE is Credit Guarantee fund Trust For Micro and Small Enterprises Scheme, backed by SIDBI and Ministry of Small and Medium Enterprises as defined under MSMED Act, 2006.

The scheme offers a collateral-free facility Business Loan up to Rs.2 crore. The business can also opt for cash credit facility for working capital needs. A term loan is available for purchase of commercial assets and business expansion. All types of enterprises can apply, except a retail trader.

Loans without Financials

As the name suggests, ICICI Business Loan without financials is one innovative product. The lender offers loan to its eligible customers based on their past transaction history. They do not need to provide audited financial to access credit.

  • You can apply for Business Loan up to Rs 1 crore under this category.
  • The loan can be availed as an overdraft or non fund based credit.
  • Minimum vintage of 3 years is required to access this facility.
  • The option can be accessed online. You can avail support from 3000+ branch network.
  • Minimal documentation and charges apply.

Finance for Importers & Exporters

You can apply for ICICI Export Finance, Letter of Credit, Bank Guarantee and foreign currency loan for your import/ export business. You can avail Business Loan in foreign currency (export credit and buyers credit) and reduce forex risk besides lowering your borrowing costs. It also lets you hedge foreign exchange risk.

Insta-Secured Overdraft Facility

This is a secured overdraft facility from ICICI Bank that is available instantly. Some of the features and benefits of this loan are:

  • Contact-less online processing
  • Instant sanction available
  • Available as pre-qualified offer for existing ICICI customers
  • No additional financial documents required for the facility
  • Minimal documentation required for the loan
  • Financing up to Rs 1crore available through this product category.
  • All in all, it is an instant and affordable solution to your working capital cash needs of business.

Based on your needs, you should choose the type of loan for your needs. You can also use a business loan EMI calculator to assess your eligibility. For uninitiated, it is best to contact the loan expert and use expert advice to find the best offer available in the market. Always compare and choose the most affordable and flexible loan option for your business.