Bank of India

Bank of India Business Loan

Years

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.

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