Indian Bank Business Loan Details

Indian Bank issues loans to 4 broad categories of applicants. Self-employed artisans and traders who require working capital to continue their trades, MSME and SME owners who require investment capital and Partnerships and large corporations pursuing corporate growth. Lastly, there is a loan for serving professionals who are interested in taking up the loan for personal reasons.  The interest rates attached to each loan is not the same as different packages have different rates. In addition to this, the loan tenure may also vary. The maximum loan tenure is 120 months and the processing fee ranges from between 1%-3% of the loan amount.

Although the general public is welcome to apply for this loan, only eligible applicants will be issued loans after their eligibility has been verified by the loan department of Indian Bank. Read on to find out more about this loan scheme.

Eligibility for Indian Bank Business Loan

Here are some of the eligibility criteria you must meet to qualify for a Business Loan from Indian Bank PLC.

  • Only economically active individuals with a stable means of income may apply
  • The minimum age to avail this loan is 21 years while the maximum age is 65 years as at the time of loan maturity
  • Applicant must be an Indian resident as NRI's are not qualified to apply
  • Applicant must have a healthy credit score of at least 750
  • The business or applicant must have been economically active for at least 3 years
  • The applicant must submit proof of income liquidity
  • Only applicant who is the actual owners of a business may apply for the loan
  • The age of the borrower must not be above 50 years as at the time of applying for the loan
  • The business/ applicant must have made profit consistently for the last two years of operation

Types of Indian Bank Business Loan

Indian Bank's business loans are divided into 7 categories all billed to provide financial support to business enterprises, career professionals, and self-employed individuals. Below is a tabular depiction of all the business loans offered by Indian Bank PLC.

NamePurposeInterest RateTenureMaximum amountProcessing fee
IB My Own ShopFor self-employed, professionals and Registered business organizations10.55%-14.75%12-120 monthsRs 25 Crores1-         1-3% of loan amount
IB Doctor PlusSpecifically meant for active doctors for constructing their own hospitals or upgrading an existing one9.95%-14.25%12-120 monthsRs 25 CroresBetween 1%-3% of loan amount
IB ContractorFor contractors handling projects for the State or Central Government of India who have been active for the last 3 years and earned income for the last 2 years9.75%-14.75%12-120 monthsRs 25 CroresBetween 1-3% of loan amount
Trade WellEssentially for traders in need of trading capital to expand their trade or to add new products to their trading lines9.65%-14.75%12-120 monthsRs 25 CroresBetween %-3% of loan amount
IND SME SecureFor Micro, Small and Medium Scale Enterprises for the purchase of plant and machinery for production9.75%-14.25%12-120 monthsRs 25 CroresBetween 1%-3% of loan amount
IB MicroFor MSMEs who offer services as a product line8.25%&10.65%12-120 monthsRs 25 CroresBetween 1%-3% of loan amount
IND SME MicroFor Small and Medium Scale Enterprises for the purchase of production equipment or the procurement of production materials10.00%-11.05%12-120 monthsRs 25 CroresBetween 1%-3% of the loan amount

Advantages of Indian Bank Business Loan

Although there are multiple lending institutions currently operating in the loan market of India, Indian Bank offers borrowers loans that have unique advantages attached to them. If you choose to go for this loan, here are some of the advantages you stand to benefit from.

#1 No Spending Restrictions: Business loans are issued for the sole objective of investment but beyond that, Indian Bank will not decide on your behalf how you spend the funds you have received. This avails you the spending privilege of utilizing the funds on your business enterprise as you deem fit. Indian Bank trusts its customers to use the funds in the smartest possible way.

#2 Ease of Access

The ease at which you can access funds for your business is another major advantage of applying for this loan. The documentation procedure is not cumbersome and Indian Bank will issue the loan to you once you are able to prove beyond any reasonable doubt that you qualify for it. The minimal paperwork involved in the application process is what makes their loan a top draw for borrowers.

#3 Reasonable Interest Rates: The last thing you want is to take up a loan that will drain the life out of your business when it is time to repay it. Interest left unpaid has a way of compounding one's indebtedness. To ease the debt burden on business people, the bank offers loans at reasonable interest rates that they can afford.

#4 Profit is all yours: This lender like most do not care how you spend the income from your enterprise. All they are interested in is that you repay your EMI as at when due. Once you are able to hold your own end of the bargain, whatever proceeds come out from your investment is all yours.

#5 Multiple Payment Channels: Paying back the loan is also easy as there are multiple channels available for customers. You may utilize Indian Bank's Electronic Clearing System, issue a Standing Order to your banker, use a mobile banking app or even the use of Electronic Banking. Customers may also choose to issue a post-dated cheque to that effect.

#6 Loan Application tracking: Applicants are not left in the dark regarding the status of their loan application. They can track their application at every step of the way through Indian Bank's customer service or a third-party website like MyMoneyMantra.

Documents required for Indian Bank Business Loan

Applicants are expected to provide these documents below to facilitate their loan application. The documents or each category clearly displayed.

Company/Individual/Firm

Proof of Identity: Aadhaar Card, Voter ID Card, PAN Card, Driver License. (any of these documents will do)

Proof of Address: Aadhaar Card, Passport, Voter ID Card, Driver License (any of these documents will do)

Proof of Income: Bank Statement for the last 6 months, Latest ITR, Income computation by a Chartered Accountant, Balance Sheet and Profit and Loss Account for the last 2 years.

Proof of Business Continuation: ITR, Trade Certificate/License/Establishment Certificate/Sales Tax Certificate/

Other Documents: Certified Copy of Partnership Deed (for business partnerships), Sole Proprietorship (for single business owner), Certified Copy MOU and the Company's Articles of Association certified by the Board of Directors (for PLC's).

Why Apply for Indian Bank Business Loan through MyMoneyMantra?

Applying for a Business Loan or for any loan in particular is a decision that should only be taken after due consideration. And such a decision can only be made after factoring in the actual and potential cost of taking up the loan. If you do not want to rue the loan you've taken up in the future, you need to make sure that you get your borrowing decisions right. These days this is easier said than done when you take into cognizance the fact that there are so many lenders offering the same loan benefits to borrowers. To make sure that you choose the right loan facility, you need to utilize the services of loan experts with years of experience in the field of finance.

MyMoneyMantra is an online one-stop shop for varieties of loan schemes currently offered by banks and NBFC's in India. This platform has been utilized by many a borrower and is still in use by many others looking for accurate information and support for their loan searches. MMM offers several benefits some of which are

  • The evaluation of your repayment capacity as far as your current income is concerned
  • Providing the applicant with advice should they need it
  • Guiding applicants in picking the most suitable schemes that they can afford
  • Providing support all through the application and documentation process
  • Providing support tools to simplify the entire loan application process
  • The provision of accurate data about each individual lender and the loans they offer

How to use MyMoneyMantra's EMI Loan Calculator?

MyMoneyMantra's EMI Calculator is very easy to use. The tool has been designed in such a way that even first time users will have no issues utilizing the tool. The calculator can be used to do the following:

  • Conduct market research on the various loan schemes available in the financial market
  • Identifying a lender whose rates are cheap and affordable
  • Obtain information about the processing fees, prepayment charges and interest rates attached to each loan scheme offered by various lenders
  • Evaluate your income eligibility for any scheme in particular

There is quite a lot you can do with MyMoneyMantra's EMI calculator. This tool is actually a multi-purpose tool that offers users all the benefits of data collection, loan application, expert advise and loan status tracking. Furthermore, all it takes is a few steps to use it. Just follow these steps below.

  • Visit MyMoneyMantra's EMI page located under the finance tools tab
  • On this page you will find different calculators such as Balance Transfer Calculators, EMI Calculator and several others. Select EMI Calculator
  • The fully loaded page will then show you the field where you are to affix the loan parameters such as interest rates, tenure, amount, etc
  • While entering these parameters, the EMI calculator will display the monthly EMI you are to pay for the loan
  • In case you are not okay with the figures provided, you can always adjust the parameters to reflect an EMI figure you are more comfortable with
  • An option is also provided for you to check your eligibility for the loan and to also get some of the best quotes currently available as wells the requirements for such loans through the MMM website.

Why use an EMI Calculator?

In case you have never used an EMI calculator before and you are not aware of the benefits of using the online tool, here are some of the benefits to be derived.

Evaluate your eligibility: An EMI Calculator is one of the surest ways to evaluate your eligibility for a specific loan offered by any lender in particular. EMI calculators aid users in finding out if their current income is suitable for the loan they wish to apply for.

Repayment capacity: You will never know how capable you are of repaying a loan if you are not aware of the EMI charge. A business calculator brings this information to light and helps you make an informed decision on which loan to go for.

Avoid computation mistakes: When calculating EMI for several months over a long period of time mistakes are common. With MyMoneyMantra' EMI however, you can compute with accuracy the EMI for each month.

Plan in advance: Another good thing about EMI calculators is that it provides you with an amortization table. With this table, you can determine at a glance how much you are to pay as EMI for the foreseeable future. The clarity this provides users cannot be overemphasized.

Make the best choice: You can make the best choice among multiple alternatives with the aid of a EMI calculator. The data it will provide will help you make the right choice in terms of tenure, rate of interest as well as the best loan amount to apply for.

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Indian Bank Business Loan FAQs

What is the current interest rate for Indian Bank's Business Loan?

The current interest rate of Indian Bank's Business Loan hovers between 8.65%-14.75% depending on the business sector in which the borrower is operating. It is important to note however that interest rates are subject to change as per RBI rates. A prevailing rate for today may change later due to macroeconomic forces and government policies.

Why do borrowers apply for business loans?

The needs of borrowers are different hence the different reasons why one may decide to go for a loan. In general, some of the common reasons include

  • The payment of employee salaries and benefits
  • Provision and maintenance of company equipment
  • Expansion of the labor force
  • Increase in inventory
  • Business expansion
  • Property acquisition or lease
  • Settlement of outstanding debts owed by the borrower

Who are the key beneficiaries of Indian Bank's Business Loans?

The key beneficiaries of this loan are:

  • Traders and artisans in need of a shop for conducting their businesses
  • Contractors handling material procurement
  • Trading funds for traders
  • Small-scale entrepreneurs

How do I calculate the Interest or EMI on a loan that I have received?

You can calculate your EMI or interest with ease by using MMM's business loan calculator. This calculator is available online and it is very easy to use. This tool will give you a complete breakdown of all the EMI for each month and you can also track the amount you have repaid while keeping a close eye on your debt profile.

Does Indian Bank have a special interest rate for existing customers?

Yea, they do. If you are a current customer and you have a very good credit score and your cash flow is positively consistent Indian Bank will be open to issuing you a lower rate of interest.

Is it possible to check the status of my loan application?

Yes, it is. To do this, simply contact the hotline of Indian Bank's customer care to speak with any of their agents. Or better still, you can check your status on the corporate website of the bank if you operate an account with them. Another way of checking your status is to contact your account manager if one has been assigned to you.

As a Small Business owner, how do I apply for an SME loan?

There are two simple ways to apply for an SME Loan. The first method is to visit any of their branches nationwide. At the branch you are to pick up a loan application form, fill in your details correctly and attach the relevant documents to the form before submission to the assigned official. The second method is to do it online by visiting Indian Bank's corporate website or through MyMoneyMantra's website.

What are the repayment channels open to me when I want to pay the EMI on a loan I have received?

 Repay the EMI on a loan, there are multiple channels such as

  • Electronic Clearing System
  • Post Dated Cheque
  • Standing Order
  • Mobile Banking

After my application has been approved how long does it take to have the funds deposited in my bank account?

It doesn't take long after application approval to receive the funds. Funds disbursal takes between 3-7 working days.

Can someone else apply for a business loan in my stead?

No, nobody may apply on your behalf. To avail of this loan, you are to apply for it in person.