BANK OF INDIA BUSINESS LOAN

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Apply Bank of India Business Loan

Bank of India Business Loan

On September 7, 1906, a group of businessmen from Mumbai established Bank of India. It was one of the first banks to be nationalised on July 19, 1969, along with 13 other private banks. Bank of India commenced its journey into the Indian banking system with one office, 50 employees, and a capital of 50 Lakhs. Today, Bank of India has grown to more than 5000 branches situated all over the country.

Bank of India has the distinction of establishing the first computerised branch and ATM facility among all nationalised banks. It has an excellent overseas presence with about 60 offices spread in more than 22 countries. It has a presence in many banking and financial centres such as Tokyo, Singapore, New York, London, and Paris.

Apart from offering a comprehensive range of deposit schemes, Bank of India offers various loans to its customers. Its Business Loan is among the popular loan products in the country.

Why Choose Bank of India Business Loan?

Bank of India caters to all business sectors, including manufacturing, services, trading, exports, and corporate entities. It offers an exhaustive range of Business Loan products in rural, semi-urban, urban, and metro areas. The best aspect of Bank of India Business Loans is that has products for every Indian citizen from the most impoverished family to the most affluent.

Bank of India is a leading financier to the MSME sector with an extensive range of specific tailor-made products to cater to every section of society. Bank of India has a tremendous reach, as it has a presence in every state and district in the country. As a leading nationalised bank, Bank of India is an active member lending institution recognised by CGTMSE. Hence, it offers collateral-free loans to the MSE sector by enabling borrowers to take advantage of the CGTMSE guarantee cover. �

Transparency in services and competitive rates of interest characterise Bank of India Business Loans.

Bank of India Business Loan - Features and Benefits

Extensive range of Business Loan products
Caters to every MSME business activity in the manufacturing, services, and trading sector
Collateral-free loans available under CGTMSE guarantee cover
Need-based finance available for meeting working capital requirements
Loans available for procuring fixed assets and expansion of business
Exclusive products to cater to specific business activity
A host of Government sponsored schemes available where eligible beneficiaries get the advantage of subsidy in the form of margin money, interest subventions, and direct credit into the account.
Reasonable rates of interest and processing charges
Concessions available in Rates of Interest on various MSME loan schemes

Bank of India Business Loan - Interest Rates

The one-year MCLR of Bank of India with effect from 10.07.2019 is 8.60%. The interest rates of all loans are linked to the one-year MCLR.

The rates of interest charged by the Bank of India depend on various factors like the loan amount, tenure, credit rating (internal) of the borrowing unit. The applicable rate of interest is a combination of the one-year MCLR, a common Business Strategy Spread (BSS) factor of 0.30% and Credit Risk Premium (CRP). This CRP depends on the loan amount, loan tenure, and the credit risk rating of the borrower.

Types of Bank of India Business Loans and Their Eligibility Norms

1.Star MSME E-Rickshaw Finance
Objective	Provide finance to transport operators in the micro category to generate employment opportunities.
Eligibility	Individuals, transport operators, proprietorship concerns, partnership firms, and associations.
Purpose	Purchase of new E-rickshaws and funding the cost of one-time battery replacement.
Facility	Term Loan
Quantum	Maximum 5 Lakhs One borrower-one e-rickshaw Not more than three e-rickshaws to a single borrower under the scheme
Margin	15% of invoice cost or 20% of on-road price Battery replacement allowed after one year: 25% of the battery replacement cost.
Repayment	E-rickshaw: 48 months including one-month moratorium Battery: 18 months including one-month moratorium
Security	Hypothecation of vehicle CGTMSE guarantee cover
Rate of interest	First vehicle: 9.40% Subsequent vehicles: 9.90% Battery Replacement: 10.40%
Service charges	First vehicle: 1,000 Subsequent vehicle: 2,000 Battery replacement: 500
Insurance	Compulsory
Other compliances	ICAT/ARAI approval Registered with local RTO

2. Star MSME GST Plus
Purpose	Meet working capital requirements of trading and manufacturing MSME units
Facility	Working Capital limit (FB and NFB)
Eligibility	Registered MSME units having valid GSTIN and complying with entry-level norms
Quantum	Minimum: 10 Lakhs Maximum: 5 Crores
Margin	Stocks: 25% Book Debts: 40%
ROI concession	0.50% in applicable ROI
Assessment	Based on turnover specified in GSTR 1 or GSTR 4 returns
Security	Hypothecation of stocks/book debts
Collateral	CGTMSE coverage available Where CGTMSE is not applicable: Minimum Counterparty Credit Risk (CCR) of 65%.

3. Star Weaver Mudra Scheme
Purpose	Meet working capital (WC) and term loan (TL) requirements of weavers
Eligibility	Existing and new weavers engaged in weaving activities in rural and urban areas
Facility	Cash Credit and Term Loan
Quantum	Cash Credit: Minimum 1 Lakh ( 50,000 and for silk weavers) and maximum 5 Lakhs. TL: Maximum amount is 2 Lakhs Composite limit: Maximum 5 Lakhs
Margin	20% of the project cost Government of India bears the margin money to the maximum extent of 10,000. The borrower has to bear the margin over the Government contribution.
Repayment terms	Term loan repayment tenure between three and five years
Subsidy	Margin money assistance up to a maximum of 10,000 Interest Subsidy with the borrower bearing 6% and the difference being borne by the Government up to the extent of 7% Annual guarantee fee of CGTMSE incurred by the Government
Issue of Mudra Card	Loans up to 50,000 thru Mudra Card Above 50,000 by way of CC A/c
Validity	Three years
Security	Hypothecation of assets and CGTMSE guarantee cover
Rate of interest	As applicable to Micro-enterprises 50,000 to less than 2 Lakhs: 9.90% 2 Lakhs to 5 Lakhs: 10.90%

4. Star SME Education Plus
Target	Educational institutions
Eligibility	Government approval for running the educational institutions is necessary Submission of three years audited financial statements Continuous profit for a minimum of two years New institutions are eligible subject to conditions Entre level credit rating should be SBS 5
Purpose	Construction/alteration/repairs and renovation of the building Purchase of office and lab equipment and furniture
Facility	Term Loan
Quantum	Minimum 10 Lakhs Maximum 5 Crores
Repayment tenure	Maximum of 8 years including moratorium of 12 to 18 months
Margin	20%

5. Star Start-Up Scheme
Objective	Funding eligible start-ups as per Government policy
Eligibility	All likely Startup enterprises
Purpose	Meet all financial requirements of start-up enterprises
Facility	Term Loan, Working Capital, and Non-fund based facility
Quantum	Minimum of 10 lakhs and maximum of 5 Crores
Margin	TL: 25% WC: 10%
ROI concession	1% concession
Processing charges	Waived
Security	All assets purchased out of bank loan Collateral: CGTMSE guarantee cover up to the extent permissible Beyond the permissible amount: Bank can insist on the provision of adequate collateral.
Validity	Five years or turnover achieving 25 Crores whichever is earlier

6. BOI Star Doctor Plus
Objective	Meet financial requirements of doctors and other healthcare professionals
Eligibility	Qualified doctors in all fields of medicine including physiotherapy and occupational therapy. Non-individual borrowers eligible if qualified doctors hold a minimum of 51% stake. Minimum age: 25 years Maximum age: 60 years
Purpose	Acquire premises to set up clinics, nursing homes, hospitals, and pathological labs or set up on rented premises subject to compliance with lease requirements. Expansion, renovation, or modernization of existing premises Purchase furniture, renovate existing clinics Purchase medical equipment including diagnostic equipment Purchase of ambulances WC requirements
Facility	Term Loan, Vehicle Loan, or Working Capital limit
Repayment	Term Loan: Five to Ten years including moratorium of one year to two years depending on the purpose Capitalisation of interest allowed Vehicle Loan repayable in five to seven years
Quantum	Need-based: Term Loan Vehicle Loan: Maximum 1 Crore Working Capital: Maximum 1 Crore
Margin	Building: 25% Equipment: 15% Ambulance: 15% Working Capital: Nil
Security	Hypothecation of assets Equitable mortgage of land and building
Collateral	CGTMSE Guarantee available up to 1 Crore Loans up to 10 Crores: No insistence of collateral Above 10 Crores: Minimum 20% collateral
Rate of interest	TL and WC: 9.90% In the case of provision of collateral: Above 25% up to 9.65% Above 50% up to 9.40% Vehicle Loan: 9.90%, in the case of women holding more than 51% shareholding, a concession of 0.50% is applicable.
Processing charges	50% concession
Other benefits	Waiver of processing charges on retail loans to spouse Free internet banking and debit card 50% discount on D-Mat A/c maintenance No prepayment, if done from own sources Top Up facility available

7.�Trade Receivable Discounting Scheme
Objective	Addressing critical needs of MSMEs of en-cashing receivables and eliminating credit risk.
Eligibility	MSME units supplying goods and services to Corporate entities, Government departments, and PSUs.
Facility	Bills Discounting, Invoice factoring
Quantum	Need-based
Rate of interest	As applicable to MSMEs
Benefits to sellers	Competitive prices Payment received on T+1 day No follow up required with buyers Not dependent on a single financier Efficient liquidity management
Benefits to buyers	Negotiate better with MSME vendors Lower costs of inputs Efficient cash-flow management Ensure that their vendors do not face a liquidity crunch

8. Star SME Contractor Credit Line
Target	All types of contractors including civil, transport, engineering, and mining
Eligibility	Sole proprietorship, partnership firms, and Pvt Ltd Companies engaged in the business for the last three years, having audited financials, and entry-level credit rating of SBS 5.
Purpose	Meeting WC needs
Facility	WC Limit including NFB facility
Quantum	Minimum 10 Lakhs Maximum 5 Crores
Appraisal	30% of the average turnover of the last two years 2/3 of the amount will be WC limit and 1/3 for NFB limit
Margin	20% for WC limit and 15% cash margin for NFB limits
Security	Hypothecation of assets of the company Collateral: Maintenance of asset cover of 1.50

9.�Star SME Auto Express
Target	All existing SME units
Eligibility	Sole proprietorship concerns, partnership firms. Pvt Ltd Companies, trusts, and societies conforming to the SME definition. Have sufficient funds to pay the margin and recurring expenses A satisfactory account with the entry-level credit rating of SBS 5
Purpose	Buy transport vehicles for delivering products Educational institutions can purchase school buses No second-hand vehicles allowed
Facility	Term Loan
Repayment	Maximum of 84 months including three months moratorium
Margin	20% of the on-road price of the vehicle
Security	Hypothecation of the vehicle with bank's name entered in RTO records and RC book of the vehicle. Collateral: CGTMSE guarantee cover available

10.��Star SME Liquid Plus
Target	All eligible SME units with a minimum existence of three years with audited financial statements.
Eligibility	Profit-making SMEs for the last two years with a minimum credit rating of SBS 5
Purpose	General purposes for SMEs, purchase of machinery, preliminary expenses
Facility	Term Loan
Quantum	Minimum 10 Lakhs and maximum of 5 Crores
Repayment	84 months including moratorium of 12 months
Margin	25% of project cost or 50% of the unencumbered value of property

11. SRTO Scheme
Eligibility	Individuals, proprietorship, partnership firms, Limited company, societies, and trusts
Purpose	Purchase of commercial vehicles, earthmoving equipment, excavators
Facility	Term Loan
Margin	15% of Project Cost
Repayment	Five to seven years with a holiday period of three years

�� Star Laghu Udhyami Samekit Loan
Target	MSE units all over India
Facility	Composite Loan
Purpose	Meet working capital requirements and other business requirements like investing in fixed assets.
Maximum quantum	Rural areas	Semi-Urban	Urban	Metro areas
	5 Lakhs	10 Lakhs	50 Lakhs	1 Crore
Margin	15%
Repayment	Maximum of five years with a holiday period of three to six months
ROI concession	No term premium
Security	Hypothecation of assets purchased with bank finance EM of land and building CGTMSE Cover
Processing charges	Up to 1 Lakh: 500 Up to 5 Lakh: 1,000 Up to 10 Lakhs: 1,500 Up to 50 Lakhs: 5,000 Up to 1 Crore: 10,000

13. Technology Upgradation Fund Scheme
Objective	Promote ease of doing business and help the Government achieve its vision of generating employment.
Purpose	Enable textile and jute industries to upgrade their technology and promote exports
Subsidy	One-time Capital Subsidy for investment in employment and technology-intensive segments of the textile industry.
Eligibility	All MSME units engaged in the textile industry such as weaving, knitting, processing of yarns and fibres, garment making, handloom, silk, and jute industry.

14. Pradhan Mantri Credit Scheme
Objective	Provide financial assistance to decentralized power loom units and weavers
Purpose	Meet WC requirements and capital investment needs
Components	Prime Minister Mudra Yojana Scheme Stand-Up India Scheme
Categories	Category 1: Existing power loom units and new individual or group entities engaged in weaving activity Category 2: Power loom units established by SC/ST or managed by a woman entrepreneur
Subsidy	Available in the form of Margin Money and Interest Reimbursement

Government Sponsored Schemes

1.�Pradhan Mantri Mudra Yojana
Objective	To bring as many un-regulated microenterprise units under the banking umbrella
Eligibility	Any individual, woman, proprietorship concern, partnership firm, Pvt Ltd Companies, and other entities.
Purpose	Set up existing microenterprise business
Facility	DL, TL or WC facility
Quantum	Shishu: Up to 50,000 Kishore: Up to 5 Lakhs Tarun: Up to 10 Lakhs
Repayment	36 months for Demand Loan 84 months for Term Loan
Margin	Shishu: Nil Kishore: 15% Tarun: 15%
Security	Hypothecation of all assets acquired from the bank loan Collateral: Guarantee cover of NCGTC under Credit Guarantee Funds for Micro Units

2. Stand Up India Scheme
Purpose	Financing SC/ST and women entrepreneurs
Objective	Finance bank loans between 10 Lakhs and 1 Crore to SC/ST and women entrepreneur to set up a Greenfield enterprise.
Eligibility	Minimum age: 18 years Only Greenfield projects eligible for finance In the case of non-individuals, SC/ST individuals should have a minimum stake of 51%. Should not be a defaulter
Facility	Composite Loan
Quantum	Minimum 10 Lakhs and maximum of 1 Crore
Repayment	Maximum 84 months with a maximum moratorium of 18 months
Security	Hypothecation of assets financed through bank Collateral: Credit Guarantee Fund Scheme for Stand-Up Loans
Disbursement	WC limit up to 10 Lakhs by way of OD with the issuance of Rupay Card Above 10 Lakhs, the sanction is by way of Cash Credit Limit
Margin money	25% in convergence with eligible Central/State scheme

3.�Prime Minister Employment Generation Programme
Objective	Generate job opportunities in rural and urban areas by setting up self-employment ventures/projects.
Eligibility	Any individual above 18 years Minimum VIII pass for projects costing over 10 Lakhs in the manufacturing and 5 Lakhs in the services sector
Margin	5% to 10% of the project cost
Margin Money Subsidy	15% in urban areas and 25% in rural areas

4. Deendayal Antyodaya National Urban Livelihoods Mission - DAY-NULM
Categories	Two types: SEP - I (Self-Employment - Individual) SEP - G (Self-Employment - Group)
Eligibility	Individuals: Minimum age 18 and maximum is 70 years Group: Minimum three members in a group with 70% of group members coming from low-income group families.
Quantum	Maximum Loan 2 lakhs per individual with a maximum exposure of 10 lakhs per group.
Margin	Up to 50,000: Nil More than 50,000: 5% to 10%
Repayment	Seven years
Guarantee cover	Available
Subsidy	Interest subsidy

5.�Star Weaver Mudra Scheme
Objective	Timely financial assistance to weavers
Purpose	Meet working capital and term loan requirement of weavers
Eligibility	New and existing handloom weavers involved in weaving activity
Facility	WC and TL
Quantum	WC facility: Minimum 50,000 ( 1 Lakhs for silk weavers). The maximum amount is 5 Lakhs. Term Loan: Maximum 2 Lakhs Composite Loan: Maximum 5 Lakhs
Subsidy	Interest subsidy available where the borrower will bear 6% interest with the balance funded by the Government up to a maximum of 7%. Margin money assistance: 20% of the cost of the project subject to a maximum of 10,000. CGTMSE fees to be borne by the Government
Mudra Card	Loans up to 50,000: Mudra Card Above 50,000: By regular CC A/c
Validity	Three years
Security	Hypothecation of assets CGTMSE guarantee cover
Rate of interest	As applicable to MSME Above 50,000 up to 2 Lakhs: 9.90% Above 2 Lakhs and up to 5 lakhs: 10.90%

6. Cluster Financing
Objective	Cluster-based scheme to provide financial assistance to a pool of borrowers engaged in a common activity in a specific geographical area.
Identification	Depends on the potential available Minimum 30 units to be active within the cluster Cluster identified by UNIDO, Ministry of MSME
Purpose	WC and TL requirements and NFB needs of units/borrowers in a particular group
Facility	Working Capital, Term Loan, and NFB limits
Quantum	Need-based
Eligibility	MSME units having valid GST registration
Security	All eligible accounts covered under CGTMSE guarantee

7.�Export Finance and Finance to Corporate sector
Bullion Banking	Export Finance	Channel Credit
Discount Future Cash Flows	Foreign Currency Swing Limit	Exporters Gold Card
Dual Currency Swing Limit	Bill Finance	Bank Guarantee

Documents Required Bank of India Business Loan

The general documents necessary for Bank of India Business Loan are as follows:

Identity Proof (any one of): Self-certified voter ID card, driving licence, PAN Card, Aadhaar Card, Passport, or photo ID issued by any Government authority.
Address Proof (any one of): Recent telephone bill, property tax receipt, electricity bill, voter ID card, the passport of proprietor/partners/directors, Aadhaar card, or certificate issued by Government authority.
Proof of SAC/ST/Minority
Business Proof: Copies of licenses, GST registration, rent agreement, or other documents that indicate business ownership.
Statement of account for the last six months from the previous banker, if any
Financial statements, ITR for the last two years
Projected financials for the next year in case of working capital limits and the entire period of the loan for a term loan.
Sales performance during the current financial year
Proforma invoices of machinery, vehicles, or any other equipment
Assets and Liabilities statement of all borrowers
MOA and AOA of companies
Partnership deed of partnership firms
Property documents in case of collateral being offered

Why Apply for Bank of India Business Loan on MyMoneyMantra?

MyMoneyMantra makes it easy for customers to apply for Bank of India Business Loan. Our site provides additional facilities like online equated monthly instalment or EMI Calculator, comparing other Business Loan products and many more. Our relationship managers are available to assist customers with the compilation of documents and submitting them to the bank. We provide these services free of cost to all customers.

How to Apply for Bank of India Business Loan on MyMoneyMantra?

Follow the steps mentioned below to apply for Bank of India Business Loan:

Go to our website and choose the Business Loan option
The system will seek details from you regarding your name, age, the amount of loan you are looking for. It will also inquire about the purpose of the loan, your location, and the place where you would like to set up your business.
Please share your mobile number and email details with us
We will send an OTP that you have to enter at the appropriate location to access the loan products page.
This page enables you to compare the various Business Loans of Bank of India as well as other banks.
Our relationship managers will assist you to select the ideal option to suit your preferences
They also help you with the compilation of the documents and submitting them to the bank. It makes the loan processing easy.

Other ways to apply for Bank of India Business Loan

You can visit the local branch of Bank of India and submit the documents along with the completed loan application form. Bank of India has offices in almost every town in India. Applicants can also download the application form from the official website of Bank of India.
It is also possible to apply for Business Loans online. Bank of India is an active participant in the Psbloansin59minutes.com initiative.

Other Products by Bank of India

Apart from Business Loans to the MSME sector and corporate entities, Bank of Baroda offers a bouquet of different loan products, such as:

BOI Super Saving Plus	Demat Account	Diamond Savings Bank Account
BOI Star Yuva Account	SB Account For Pensioners	BOI Star Mahila SB Account
BOI Star Senior Citizen SB Account	Star Suraksha SB Plus Account	BOI Savings Plus Scheme
Savings Bank Ordinary Account	BOI Salary Plus Account Scheme	BOI Saral Salary Account Scheme
BOI Star Gurukul SB Account	Jai Jawan Salary Plus Account	Silver Current Account
Normal Current Account	Gold Current Account	Diamond Current Account
Gold Plus Current Account	Diamond Plus Current Account	Star Benefit CD Plus Current Account
Platinum Current Account	Platinum Plus Current Account	BOI Super Current Plus Account
Current Deposit Plus Account	Double Benefit Term Deposit	Star Flexi-Recurring Deposit
Monthly Deposit	Quarterly Deposit	Recurring Deposit
Short Deposit	Fixed Deposit	Star Sunidhi Tax-Saving Deposit Scheme
Capital Gain Tax Saving Scheme	Motor Accident Claims Annuity (Term) Deposit Account (MACAD)	SB Insurance
CASA Term Insurance	MIC of SB Accounts	Kisan Credit Card
Star Bhumiheen Kisan Card	BOI Kisan Shatabdi Krishi Vikas Card	Kisan Samadhan Card
Rural Services	NRI Banking	NRI Loans
Export Credit	LC/BG	Remittances
Credit Cards	Debit Cards	Prepaid Cards
Business Card	Merchant Services	Cash Management Systems
Tax Payment	Online IT Return Filing	Insurance
PPF	Online Bill Payments	MSME Banking
BOI Star Home Loan	BOI Star Smart Home Loan	Star Pravasi Home Loan
BOI Star Diamond Home Loan	Pradhan Mantri Awaas Yojana	BOI Star Loan against property
BOI Star Education Loan	BOI Star Vidya Loan	Padho Pradesh
BOI Star Top Up Loan	BOI Star Vehicle Loan	BOI Star Personal Loan
BOI Star Mitra Personal Loan	BOI Star Pension Loan	Star Holiday Loan
BOI Star Doctor Plus	BOI Star IPO	Pradhan Mantri Kaushal Rin Yojana

How to Calculate Bank of India Business Loan EMI?

MyMoneyMantra offers Business Loan EMI Calculator. Access website, go to Financial Tools and select the EMI Calculator option. Enter details such as your loan amount, tenure, and rate of interest to get your Business Loan EMI. This calculator provides additional information such as bifurcation of interest and principal repayment.

You can also use the Bank of India Business Loan EMI Calculator available online on their website to determine your loan EMI. It is easy to use this calculator. Customers have to enter the loan amount, interest rate, and loan tenure to get their EMI within no time.

Bank of India Business Loan - Processing Fee and Other Charges

Processing Charges
Limit Range	Rural and Semi-urban Branches	Other branches
Up to 1 Lakh	Nil	Nil
Over 1 Lakh	250 per lakh with a maximum of 10 Lakhs	300 per lakh with a maximum of 15 Lakhs
Term Loan Review
	75 per lakh with a maximum of 2 Lakhs	90 per lakh with a maximum of 3 Lakhs
Limit Range	Documentation Charges	Inspection Charges
�	�	Rural/Semi-Urban branches	Metro and Urban branches
Up to 1 Lakh	Nil	Nil	Nil
> 1 Lakh to 5 Lakhs	1,000	200	300
> 5 Lakhs to 10 Lakhs	2,000	500	750
> 10 Lakhs to 25 Lakhs	3,000	1,000	1,500
> 25 Lakhs to 1 Crore	5,000	1,500	2,000
> 1 Crore to 5 Crores	10,000	2,000	3,000
> 5 Crores	20,000	2,500	3,500
Equitable Mortgage Charges	Limit Range	All branches
	Up to 10 Lakhs	Nil
	> 5 Lakhs to < 50 Lakhs	5,000
	50 Lakhs to	10,000
	5 Crores and above	50,000
Amendment or Modification of Sanction terms	Limit Range	Amount per instance
	Up to 1 Crore	Nil
	> 1 Crore to 5 Crores	7,500
	> 5 Crores to 50 Crores	30,000
	Above 50 Crores	50,000
Prepayment Charges	Term Loan: 0.50% on the prepaid amount for the residual period of the loan. Floating rate loans to individuals: Nil Closed from own sources: Nil

Bank of India Business Loan - Customer Care

Customers can make general enquiries at the following toll-free numbers:

1800-220-229
1800-103-1906

Bank of India Business Loan - FAQs

Is it necessary to have an account in Bank of India to avail Business Loans?

No, it is not compulsory to maintain accounts in Bank of India if you wish to avail loans from the bank. However, it becomes easy for the bank to process your loans and ensure prompt repayment if you maintain your business account the bank. The bank finds it easy to monitor your account, whereby it becomes convenient at the time of the annual review.

How do you repay the Bank of India Business Loan EMI?

The most convenient way of repaying the Business Loan EMI is to maintain a standing instruction order with the bank. It ensures prompt repayment on the due date. Alternatively, you can deposit PDCs in advance or have ECS instructions set up to clear the instalment on the due date.

Can I foreclose the Bank of India Business Loan?

Yes, it is possible to foreclose the Bank of India Business Loan. Individual borrowers do not incur any penalty for foreclosing the loan.

What types of non-fund based facilities are available with Bank of India?

Bank of India has many Business Loan products that enable the borrowers to avail non-fund based facilities. The bank opens Letters of Credit, both inland and foreign. At the same time, the bank also issues bank guarantees on behalf of its customers.

Can I repay my Bank of India Business Loan through mobile banking?

Yes, it is now possible to transfer funds from one account to another using the mobile banking channel. Bank of India offers mobile banking application to enable you to transact online and repay your Business Loans as well.

What is the benefit of the CGTMSE guarantee?

The primary advantage of the CGTMSE guarantee is that you can avail collateral-free loans. You do not have to provide security in the form of mortgage of your property. This facility is advantageous to MSE units that do not have facilities to offer collateral.

How does CGTMSE guarantee protect the banks?

CGTMSE guarantee cover protects the banks from the default of the customer. In case the account turns into NPA, the bank can invoke the guarantee cover and lodge the claim with the trust. It protects the bank to a large extent.

What are the prime requisites to avail CGTMSE guarantee cover?

CGTMSE guarantee is available to micro and small enterprises alone. Credit limits up to 2 Crores are eligible for the guarantee cover. The rules stipulate that the banks should not ask for any other collateral or third-party guarantee if they propose to extend CGTMSE protection to the borrower. The borrower has to pay the guarantee fee and annual service charges to keep the guarantee in force.

Can a borrower avail CGTMSE guarantee for part of the loan while providing collateral for the balance amount?

o, this facility is not available. Borrowers can provide collateral for the entire amount and not avail the guarantee cover at all. They can avail the cover for one loan and offer collateral for another one if they have two separate loan accounts.

Can I avail CGTMSE cover for a Business Loan sanctioned for constructing factory building?

Yes, MSE units can avail CGTMSE cover for such loans provided they are otherwise eligible. However, the borrower should mortgage the land and building with the bank, as the mortgage forms part of prime security.

Latest News and Snippets - Bank of India

Bank of India posts a net profit of 252 Crores for the March quarter.

A reduction in the bad moans or NPA portfolio enables Bank of India to post a profit of 252 Crores for the last quarter of the year 2018-19. However, the bank has posted an overall loss of 5,546.90 Crores for the financial year 2018-19. This profit in the last quarter of the year suggests that the bank has turned the corner after coming out of the PCA (Prompt Corrective Action) regulatory framework.

Bank of India to disinvest 25.05% of its share in JV Star Union Dai-ichi

Bank of India has announced a depletion in its stake in JV Star Union Dai-ichi Life Insurance Co by selling 25.05% of its shares for 1,106 Crores. The sale is a part of the bank's plan to offload its non-core assets and raise funds.

Bank of India could receive a fresh infusion of capital from the Government this fiscal.

The Government of India made a substantial capital infusion of 1,06,000 Crores in the financial year 2018-19. As a result of this capital infusion, five banks, including Bank of India, came out of the PCA framework. The bank expects the second round of capital infusion this fiscal, as the Finance Minister has announced a rehabilitation package for the public sector banks this fiscal.