Bank of India (BOI) offers a comprehensive range of business loan schemes tailored to meet diverse business requirements. From fulfilling working capital needs to funding large-scale expansion projects, a BOI Business Loans can help support all the needs of a business. Let’s delve into the various business loan options, eligibility requirements, and application processes offered by BOI to make an informed decision and upscale your business.
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ToggleTypes of Business Loans
You can choose from a range of business loan options provided by the Bank of India. Here are some types of the BOI Business Loan you can opt for depending on your requirements and preferences:
Star Asset Backed Loan
The Star Asset Backed Loan is ideal for businesses seeking substantial financial assistance for various purposes.
- Purpose: Provides financial support for working capital, fixed asset acquisition, and liquidity management. This scheme ensures businesses have the resources to maintain smooth operations and fund long-term investments.
- Loan Amount: Ranges from ₹10 Lakhs to ₹20 Crores, catering to medium and large businesses
- LTV Ratio: When mortgaging residential property, you can get an LTV of up to 60%. However, in the case of non-residential property, the maximum LTV offered by BOI is 50%.
- Repayment Period: Flexible tenures of up to 15 years, allowing businesses to manage repayments without straining their cash flow
- Eligibility: Applicants must demonstrate a strong operational history of at least 3 years and profitability in the last 2 financial years
Star MSME GST Plus
This loan is designed to meet the working capital and operational needs of micro and small enterprises (MSEs).
- Purpose: Offers funding for day-to-day operational expenses and working capital requirements, ensuring smooth business operations
- Loan Amount: Determined by the size and specific needs of the business. The quantum can range from ₹10 Lakhs to ₹5 Crores.
- Eligibility Criteria: The business must have a valid GSTIN and the rating of the account offered as collateral should be of minimum investment grade and complying entry level norms
- Margin: Comes with a 25% margin on stocks and a 40% margin on book debts
- Additional Details: The working capital limit should not exceed 25% of the assessed annual turnover in case of an MSE and 20% for a medium enterprise
Star Laghu Udyami Samekit Loan
Aimed at fostering entrepreneurship in rural, semi-urban, and urban areas, this loan empowers micro and small enterprises.
- Purpose: Provides financial assistance to businesses in various geographical areas to support their growth and expansion. Enables budding entrepreneurs to get the required working capital or term/demand loan to make investments and grow the business.
- Loan Amount: Up to ₹1 Crore, with variations based on the business’s location and scale
- Security: The loan is covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Guarantee Scheme. Also, no collateral security/third party guarantee to qualify for the loan.
- Repayment Period: The tenure of the loan is up to 5 years. It also comes with a moratorium period of 3 to 6 months.
Star Start-up Scheme
This scheme is specifically designed to nurture startups recognised by the government.
- Purpose: Offers financial support to innovative startups, enabling them to scale their operations and achieve business milestones
- Loan Amount: Starts from ₹10 Lakhs. The amount offered is determined based on the startup’s unique needs and growth plans.
- Interest Rate: Competitive rates tailored to the applicant’s creditworthiness and business potential. The borrower is also offered a 1% concession on the applicable rate of interest.
- Processing Fee: The processing charges applicant’s usually need to pay when getting a business loan are waived off
- Repayment Period: Flexible repayment terms that align with the startup’s revenue cycles. The tenure extends up to 10 years with a moratorium period of up to 2 years.
Pradhan Mantri MUDRA Yojana (PMMY)
The Pradhan Mantri MUDRA Yojana supports small businesses and entrepreneurs, including artisans and weavers.
- Purpose: Provides financial assistance to individuals and small businesses to cover operational and growth needs
“ - Loan Amount: Categorised under Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 Lakhs), and Tarun (₹5 Lakhs to ₹10 Lakhs) schemes
- Eligibility: Open to individuals, sole proprietors, partnership firms, and private companies
- Repayment Period: In the case of a demand loan you can get a maximum tenure of 3 years. Meanwhile, the repayment period for a term loan under this scheme can go up to 7 years.
- Additional Benefit: This scheme is a government initiative, making it accessible and affordable for small businesses
Eligibility Criteria
To qualify for a BOI business loan, applicants must meet some of these basic criteria listed below:
- Compliance: The business must be compliant with the following statutory requirements (as applicable):
- Udhyam registration
- GST Registration
- Licence under Shops & Commercial Establishment Act, Trade Licence etc.
- Operational History: The business must have been operational for at least three years, demonstrating stability and reliability
- Profitability: Applicants should show profits in at least two of the last three financial years
- GST Registration: A valid Goods and Services Tax (GST) registration is mandatory, ensuring compliance with tax regulations
- Credit Rating: The business must maintain a satisfactory credit score as per BOI’s standards to qualify for competitive interest rates
The requirements may vary depending on the loan type you wish to opt for. Be sure to reach out to the Bank of India for further details
Documentation Required
Proper documentation is essential for the loan application process. Typically, BOI will ask you to submit the following documents:
- Identity and Address Proof: Documents like Aadhaar card, PAN card, or passport for verification
- Income Tax Returns (ITRs): Filed personal and business returns of the last 2 years to establish financial stability
- Bank Statements: Statements for the past 6 months to assess cash flow and financial health
- Financial Statements: Audited balance sheets and profit & loss accounts to determine profitability
- Business Registration Documents: Certificates of incorporation, partnership deeds, and other legal documents
- Additional Documents: GST registration certificate, project reports, and any other documents as specified by the bank
Application Process
Applying for a business loan from BOI is a simple and efficient process, with both online and offline options available:
- Choose the Loan Scheme: Visit the BOI website or branch to explore and select a loan scheme that matches your business needs
- Complete the Application: Fill out the application form accurately with all required details
- Submit Documentation: Provide the necessary documents as per the bank’s checklist
- Verification and Approval: The bank reviews the application and documents, conducting thorough checks to ensure eligibility
- Loan Disbursement: Once approved, the loan amount is disbursed promptly, allowing businesses to utilise funds without delays
BOI business loans are designed to empower enterprises with the financial support needed to grow and succeed. The variety of schemes ensures that businesses of all sizes and industries can find a loan that suits their needs. With a transparent application process, minimal documentation, and competitive interest rates, BOI stands out as a reliable partner for business growth.
Whether you are an emerging startup or an established enterprise, Bank of India’s business loan offerings can help you achieve your goals and expand your operations effectively. You can also use a business loan EMI calculator to compare the options and identify an offer which best suits your needs. Explore the options today and take the first step towards building a thriving business.
