Bank of India Business Loan Details

Loan amountUp to Rs. 5 Crores
TenureUp to 10 years
Rate of interest9.70% p.a. onwards
TypesStar MSME E-Rickshaw Finance, Star MSME GST Plus, Star Weaver Mudra Scheme, Star SME Education Plus, Star Start-Up Scheme, Pradhan Mantri Credit Scheme, etc.
Type of facility Term Loan & Overdraft
MarginUp to 50%

Bank of India Business Loan Features & Benefits

  • Extensive range of Business Loan products.
  • Caters to every MSME business activity in the manufacturing, services, and trading sectors.
  • Collateral-free loans available under CGTMSE guarantee cover.
  • Need-based finance was available for meeting working capital requirements.
  • Loans available for procuring fixed assets and expansion of business.
  • Exclusive products to cater to specific business activities.
  • A host of government-sponsored schemes are 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

Bank of India business loan interest rates are linked to the Base Rate which is 9.70% at present. The rates of interest charged by the Bank of India depend on various factors like the loan amount, tenure, and 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, and a Credit Risk Premium (CRP). This CRP depends on the loan amount, loan tenure, and the credit risk rating of the borrower.

Bank of India Business Loan EMI Calculation

You can access our Business Loan EMI Calculator available on our website under Financial Tools. To use the calculator, enter details such as your loan amount, tenure, and rate of interest to get your Business Loan EMI instantly. This calculator provides additional information such as bifurcation of interest and principal repayment.

Here is an example of EMI calculation using MyMoneyMantra EMI Calculator:

  • Loan amount required: Rs. 50 Lakhs
  • Applicable rate of interest: 9.70% p.a.
  • Repayment tenure: 7 years
  • EMI to be paid by you each month: Rs. 82,233
  • Total interest to be paid: Rs. 19,07,567
  • Total amount to be paid by you to the lender: Rs. 69,07,567

Our EMI Calculator also provides the following amortization schedule:

YearOpening BalanceAmount Paid by customer(EMI*12)Principal paid during the yearInterest paid during the yearClosing Balance
1Rs. 50,00,000Rs. 9,86,795Rs. 5,24,716Rs. 4,62,079Rs. 44,75,284
2Rs. 44,75,284Rs. 9,86,795Rs. 5,77,939Rs. 4,08,856Rs. 38,97,345
3Rs. 38,97,345Rs. 9,86,795Rs. 6,36,560Rs. 3,50,236Rs. 32,60,785
4Rs. 32,60,785Rs. 9,86,795Rs. 7,01,126Rs. 2,85,669Rs. 25,59,659
5Rs. 25,59,659Rs. 9,86,795Rs. 7,72,242Rs. 2,14,553Rs. 17,87,417
6Rs. 17,87,417Rs. 9,86,795Rs. 8,50,571Rs. 1,36,224Rs. 9,36,845
7Rs. 9,36,845Rs. 9,86,795Rs. 9,36,845Rs. 49,950Rs. 0

Bank of India Business Loan Types & Eligibility

Following are the business loan types offered by the Bank of India with their features and eligibility criteria: 

Star MSME E-Rickshaw Finance

ObjectiveProvide finance to transport operators in the micro category to generate employment opportunities.
EligibilityIndividuals, transport operators, proprietorship concerns, partnership firms, and associations.
PurposePurchase of new E-rickshaws and funding the cost of one-time battery replacement.
FacilityTerm Loan
  • Maximum Rs. 5 Lakhs
  • One borrower-one e-rickshaw
  • Not more than three e-rickshaws to a single borrower under the scheme
  • 15% of invoice cost or 20% of on-road price
  • Battery replacement allowed after one year: 25% of the battery replacement cost.
  • E-rickshaw: 48 months including one-month moratorium
  • Battery: 18 months including one-month moratorium
  • 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: Rs. 1,000
  • Subsequent vehicle: Rs. 2,000
  • Battery replacement: Rs. 500
Other compliances
  • ICAT/ARAI approval
  • Registered with local RTO

Star MSME GST Plus

PurposeMeet working capital requirements of trading and manufacturing MSME units
FacilityWorking Capital limit (FB and NFB)
EligibilityRegistered MSME units having valid GSTIN and complying with entry-level norms
  • Minimum: Rs. 10 Lakhs
  • Maximum: Rs. 5 Crores
  • Stocks: 25%
  • Book Debts: 40%
ROI concession0.50% in applicable ROI
AssessmentBased on turnover specified in GSTR 1 or GSTR 4 returns
SecurityHypothecation of stocks/book debts
  • CGTMSE coverage available
  • Where CGTMSE is not applicable: Minimum Counterparty Credit Risk (CCR) of 65%.

Star Weaver Mudra Scheme

PurposeMeet working capital (WC) and term loan (TL) requirements of weavers
EligibilityExisting and new weavers engaged in weaving activities in rural and urban areas
FacilityCash Credit and Term Loan
  • Cash Credit: Minimum Rs. 1 Lakh (Rs. 50,000 and for silk weavers) and maximum Rs. 5 Lakhs.
  • TL: Maximum amount is Rs. 2 Lakhs
  • Composite limit: Maximum Rs. 5 Lakhs
  • 20% of the project cost
  • The government of India bears the margin money to the maximum extent of Rs. 10,000. The borrower has to bear the margin over the Government contribution.
Repayment termsTerm loan repayment tenure between three and five years
  • Margin money assistance up to a maximum of Rs. 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 Rs. 50,000 thru Mudra Card
  • Above Rs. 50,000 by way of CC A/c
ValidityThree years
SecurityHypothecation of assets and CGTMSE guarantee cover
Rate of interest
  • As applicable to Micro-enterprises
  • Rs. 50,000 to less than Rs. 2 Lakhs: 9.90%
  • Rs. 2 Lakhs to Rs. 5 Lakhs: 10.90%

Star SME Education Plus

TargetEducational institutions
  • 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
  • Construction/alteration/repairs and renovation of the building
  • Purchase of office and lab equipment and furniture
FacilityTerm Loan
  • Minimum Rs. 10 Lakhs
  • Maximum Rs. 5 Crores
Repayment tenureMaximum of 8 years including moratorium of 12 to 18 months

Star Start-Up Scheme

ObjectiveFunding eligible start-ups as per Government policy
EligibilityAll likely Startup enterprises
PurposeMeet all financial requirements of start-up enterprises
FacilityTerm Loan, Working Capital, and Non-fund based facility
QuantumMinimum of Rs 10 lakhs and maximum of Rs 5 Crores
  • TL: 25%
  • WC: 10%
ROI concession1% concession
Processing chargesWaived
  • 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.
ValidityFive years or turnover achieving Rs. 25 Crores whichever is earlier

BOI Star Doctor Plus

ObjectiveMeet financial requirements of doctors and other healthcare professionals
  • 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
  • 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
FacilityTerm Loan, Vehicle Loan, or Working Capital limit
  • 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
  • Need-based: Term Loan
  • Vehicle Loan: Maximum Rs. 1 Crore
  • Working Capital: Maximum Rs. 1 Crore
  • Building: 25%
  • Equipment: 15%
  • Ambulance: 15%
  • Working Capital: Nil
  • Hypothecation of assets
  • Equitable mortgage of land and building
  • CGTMSE Guarantee available up to Rs. 1 Crore
  • Loans up to Rs. 10 Crores: No insistence of collateral
  • Above Rs. 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 charges50% 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

Trade Receivable Discounting Scheme

ObjectiveAddressing critical needs of MSMEs of en-cashing receivables and eliminating credit risk.
EligibilityMSME units supplying goods and services to Corporate entities, Government departments, and PSUs.
FacilityBills Discounting, Invoice factoring
Rate of interestAs 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

Star SME Contractor Credit Line

TargetAll types of contractors including civil, transport, engineering, and mining
EligibilitySole 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.
PurposeMeeting WC needs
FacilityWC Limit including NFB facility
  • Minimum Rs. 10 Lakhs
  • Maximum Rs. 5 Crores
  • 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
Margin20% for WC limit and 15% cash margin for NFB limits
  • Hypothecation of assets of the company
  • Collateral: Maintenance of asset cover of 1.50

Star SME Auto Express

TargetAll existing SME units
  • 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
  • Buy transport vehicles for delivering products
  • Educational institutions can purchase school buses
  • No second-hand vehicles allowed
FacilityTerm Loan
RepaymentMaximum of 84 months including three months moratorium
Margin20% of the on-road price of the vehicle
  • Hypothecation of the vehicle with bank's name entered in RTO records and RC book of the vehicle.
  • Collateral: CGTMSE guarantee cover available

Star SME Liquid Plus

TargetAll eligible SME units with a minimum existence of three years with audited financial statements.
EligibilityProfit-making SMEs for the last two years with a minimum credit rating of SBS 5
PurposeGeneral purposes for SMEs, purchase of machinery, preliminary expenses
FacilityTerm Loan
QuantumMinimum Rs. 10 Lakhs and maximum of Rs. 5 Crores
Repayment84 months including moratorium of 12 months
Margin25% of project cost or 50% of the unencumbered value of property

SRTO Scheme

EligibilityIndividuals, proprietorship, partnership firms, Limited company, societies, and trusts
PurposePurchase of commercial vehicles, earthmoving equipment, excavators
FacilityTerm Loan
Margin15% of Project Cost
RepaymentFive to seven years with a holiday period of three years

Star Laghu Udhyami Samekit Loan

TargetMSE units all over India
FacilityComposite Loan
PurposeMeet working capital requirements and other business requirements like investing in fixed assets.

Maximum quantum


Rural areasSemi-UrbanUrbanMetro areas
Rs. 5 LakhsRs. 10 LakhsRs. 50 LakhsRs. 1 Crore
RepaymentMaximum of five years with a holiday period of three to six months
ROI concessionNo term premium
  • Hypothecation of assets purchased with bank finance
  • EM of land and building
  • CGTMSE Cover
Processing charges
  • Up to Rs. 1 Lakh: Rs. 500
  • Up to Rs. 5 Lakh: Rs. 1,000
  • Up to Rs. 10 Lakhs: Rs. 1,500
  • Up to Rs. 50 Lakhs: Rs. 5,000
  • Up to Rs. 1 Crore: Rs. 10,000

Technology Upgradation Fund Scheme

ObjectivePromote ease of doing business and help the Government achieve its vision of generating employment.
PurposeEnable textile and jute industries to upgrade their technology and promote exports
SubsidyOne-time Capital Subsidy for investment in employment and technology-intensive segments of the textile industry.
EligibilityAll MSME units engaged in the textile industry such as weaving, knitting, processing of yarns and fibres, garment making, handloom, silk, and jute industry.

Pradhan Mantri Credit Scheme

ObjectiveProvide financial assistance to decentralized power loom units and weavers
PurposeMeet WC requirements and capital investment needs
  • Prime Minister Mudra Yojana Scheme
  • Stand-Up India Scheme
  • 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
SubsidyAvailable in the form of Margin Money and Interest Reimbursement

Government Sponsored Scheme:

Pradhan Mantri Mudra Yojana

ObjectiveTo bring as many un-regulated microenterprise units under the banking umbrella
EligibilityAny individual, woman, proprietorship concern, partnership firm, Pvt Ltd Companies, and other entities.
PurposeSet up existing microenterprise business
FacilityDL, TL or WC facility
  • Shishu: Up to Rs. 50,000
  • Kishore: Up to Rs. 5 Lakhs
  • Tarun: Up to Rs. 10 Lakhs
  • 36 months for Demand Loan
  • 84 months for Term Loan
  • Shishu: Nil
  • Kishore: 15%
  • Tarun: 15%
  • Hypothecation of all assets acquired from the bank loan
  • Collateral: Guarantee cover of NCGTC under Credit Guarantee Funds for Micro Units

Stand Up India Scheme

PurposeFinancing SC/ST and women entrepreneurs
ObjectiveFinance bank loans between Rs. 10 Lakhs and Rs. 1 Crore to SC/ST and women entrepreneur to set up a Greenfield enterprise.
  • 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
FacilityComposite Loan
QuantumMinimum Rs. 10 Lakhs and maximum of Rs. 1 Crore
RepaymentMaximum 84 months with a maximum moratorium of 18 months
  • WC limit up to Rs. 10 Lakhs by way of OD with the issuance of Rupay Card
  • Above Rs. 10 Lakhs, the sanction is by way of Cash Credit Limit
Margin money25% in convergence with eligible Central/State scheme

Prime Minister Employment Generation Programme

ObjectiveGenerate job opportunities in rural and urban areas by setting up self-employment ventures/projects.
  • Any individual above 18 years
  • Minimum VIII pass for projects costing over Rs. 10 Lakhs in the manufacturing and Rs. 5 Lakhs in the services sector
Margin5% to 10% of the project cost
Margin Money Subsidy15% in urban areas and 25% in rural areas

Deendayal Antyodaya National Urban Livelihoods Mission – DAY-NULM

  • Two types:
    • SEP – I (Self-Employment – Individual)
    • SEP – G (Self-Employment – Group)
  • 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.
QuantumMaximum Loan Rs 2 lakhs per individual with a maximum exposure of Rs 10 lakhs per group.
  • Up to Rs. 50,000: Nil
  • More than Rs. 50,000: 5% to 10%
RepaymentSeven years
Guarantee coverAvailable
SubsidyInterest subsidy

Star Weaver Mudra Scheme

ObjectiveTimely financial assistance to weavers
PurposeMeet working capital and term loan requirement of weavers
EligibilityNew and existing handloom weavers involved in weaving activity
FacilityWC and TL
  • WC facility: Minimum Rs. 50,000 (Rs. 1 Lakhs for silk weavers). The maximum amount is Rs. 5 Lakhs.
  • Term Loan: Maximum Rs. 2 Lakhs
  • Composite Loan: Maximum Rs. 5 Lakhs
  • 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 Rs. 10,000.
  • CGTMSE fees to be borne by the Government
Mudra Card
  • Loans up to Rs. 50,000: Mudra Card
  • Above Rs. 50,000: By regular CC A/c
ValidityThree years
  • Hypothecation of assets
  • CGTMSE guarantee cover
Rate of interest
  • As applicable to MSME
    • Above Rs. 50,000 up to Rs. 2 Lakhs: 9.90%
    • Above Rs. 2 Lakhs and up to Rs. 5 lakhs: 10.90%

Cluster Financing

ObjectiveCluster-based scheme to provide financial assistance to a pool of borrowers engaged in a common activity in a specific geographical area.
  • Depends on the potential available
  • Minimum 30 units to be active within the cluster
  • Cluster identified by UNIDO, Ministry of MSME
PurposeWC and TL requirements and NFB needs of units/borrowers in a particular group
FacilityWorking Capital, Term Loan, and NFB limits
EligibilityMSME units having valid GST registration
SecurityAll eligible accounts covered under CGTMSE guarantee

Export Finance & Finance to Corporate sector

Bullion BankingExport FinanceChannel Credit
Discount Future Cash FlowsForeign Currency Swing LimitExporters Gold Card
Dual Currency Swing LimitBill FinanceBank Guarantee

Documents Required for 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 licences, GST registration, rent agreement, or other documents that indicate business ownership.
  • Statement of account for the last 6 months from the previous banker, if any.
  • Financial statements, ITR for the last 2 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.

How to Apply for a Bank of India Business Loan?

Follow the steps mentioned below to apply for a Bank of India business loan through MyMoneyMantra:

  • Go to our website and choose the Business Loan option
  • The system will seek details from you regarding your name, age, and 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 the Bank of India as well as other banks.
  • Our relationship managers will assist you in selecting 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.

Bank of India Business Loan Charges

  • Processing fees: Up to Rs. 300 per lakh with a maximum of Rs. 15 Lakhs
  • Documentation charges: Up to Rs. 20,000
  • Inspection charges: Up to Rs. 3,500
  • Equitable Mortgage Charges: Up to Rs. 50,000
  • Amendment or Modification of Sanction terms: Up to Rs. 50,000
  • Prepayment Charges: Up to 0.50% on the prepaid amount for the residual period of the loan.

Bank of India Business Loan Customer Care

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

  • 1800-220-229
  • 1800-103-1906

View and improve your credit score - for free.

Know how good your score is

Get insights on how to improve it

Unlock offers as per your score

chart_15f235bf64 (1).svg

The best offers from India’s most
trusted banks


Business Loan Offers

Get Kotak Mahindra Bank Business Loan up to Rs. 2 Crore online at interest rate starting from 16% p.a.

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 Rs. 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?


No, 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.