IDBI Bank Business Loan
Established in 1964 as part of an Act of Parliament, the Industrial Development Bank of India (IDBI) is an iconic institution in the banking industry. Though IDBI provides retail banking facilities like any other normal, as its name suggests, it specializes in industrial finance. The bank focuses on MSME, Corporate, agriculture sectors with its products and financial services. Business loans by IDBI have gained popularity and goodwill over the decades with its target group. This is because of the different loan schemes introduced from time to time in order to suit the varying financial needs of businesses.
Why Apply for IDBI Business Loan?
IDBI provides tailor-made business loan products for its corporate and other customer segments. Their offerings in the business loan category are unique and have been curated keeping different businesses at the focal point. Most of these loans do not need collateral or third party guarantee so as to aid the loan applicants.
- Interest Rate: 10.95% onwards (up to Rs.2 crores)
- 9.95% for loans above Rs.2 crores.
- 13 % for specific loans (subject to change according to eligibility, type of business and CIBIL score)
- Processing Fee: 1% with applicable service charge (standard for most bank loans)
- Loan tenure: 1 year to 5 years (12 months to 60 months, according to your needs)
- Foreclosure Charges: NIL (applicable only after the payment of at least 6 EMI)
- 2 % between 1st to 6th EMI.
Why Apply for a Business Loan on Loanbaba?
Loanbaba.com is your one-stop destination for all kinds of loans of smaller and larger amounts. Whether you want to invest in your business or want a loan for education, property purchase, car purchase or any other opportunity, we offer you multiple options. At loanbaba.com, you get business loans at the best and lowest interest rates. The easy-to-navigate portal has made the whole process of availing a loan time-saving and easy for its customers who want to apply for a Loan Online in India.
Loanbaba.com is a well-curated website for business loan applicants where loans of all shapes and sizes are made available under the same platform. Its user friendly navigation and tabulated information makes it easier for visitors to comparatively analyse the best suited financial tools for them. Applying online has never been this easy for citizens in India.
- Fast and efficient- Loan application often is a slow process but our customers have a different story to tell. Visitors have observed that the entire process of selecting and applying for the best suited loan does not take more than a few minutes on our website. Once the loan is approved by Bank of Baroda, the amount will be disbursed into your account.
- Compare to save- Our partnerships with over 20 reputed banks and other NBFCs make sure you have looked at all your options before applying. There is complete clarity on all the associated costs like processing fees, loan tenure, prepayment fees that come along with financial services. Loans are available at the cheapest interest rates.
- Safe Transactions- Our experienced executives will take you through the process in case of any queries. All your details remain confidential with us as the built-in security of the website is robust. We make sure that your information sent to the bank goes through a safe and secured environment.
IDBI Business Loan Eligibility Calculator
Calculating EMI manually can be a cumbersome process for loan applicants. You can bypass this tiring process by using thebusiness loan EMI calculator and calculate the loan amount needed for your business in easy steps. It makes the calculation effortless and speedy. The result is computed in a very less time. You just put the required values in the calculator (loan amount, tenure and rate of interest) to know your EMI.The loan eligibility calculator in particular will tell you the amount limit of the loan that you can apply for.
Types of IDBI Business Loans
IDBI bank has different business loan schemes catering to the different businesses’ financial needs. Some of the business loan schemes are as follows:
IDBI Mudra Loan
A short-term, collateral free loan starting from Rs.50000 to Rs.10 lakhs this type of loan can range between one to five years. The processing charge is free for loans above the 5 lakh mark.
MSME Finance
With attractive interest rates, IDBI’s business loan particularly for the Medium, Small and Micro Enterprises takes care of all banking activities of the company applying for it. Apart from the range of solutions, the other benefits are easy processing of loan and quick disbursal of loan amount into the applicant’s account. The loan amount range is from Rs.1 lakh to Rs.2 crores while the interest rate varies from case to case base with a 1% processing fee on the loan.
Vendor Finance from IDBI
IDBI is popular for this type of loan specifically for vendors, usually large corporations, manufacturers that need funding for production. The loan amount meets the financial needs of a vendor at different stages of his business.
Frequently Asked Questions about IDBI Bank Business Loans
Here are the IDBI Bank Business loans FAQs.
1. What is the time period from application to loan disbursal?
Loanbaba works closely with the bank to process your loan easily and quickly. After filling out the IDBI business loan form on Loanbaba, it is likely to take at least 3 business days for the bank to sanction the disbursement. The bank reserves the rights to take more time in case of any discrepancy.
2. How can I track my loan application process?
You can log onto our website www.loanbaba.com to track your application. Please take note of your registered mobile number and email-ID. Writing it somewhere may help for safety and convenience purposes. Using those credentials, you can track your application process in real time.
3. Can I repay the business loan amount earlier than the term?
Yes, IDBI allows the liberty to prepay your loan amount after the payment of your first EMI. After that up to 6 months, the interest for foreclosure is 2 % and any time after that isfree of charge.
4. How is the loan amount limit determined by IDBI?
Loan amount is mainly decided based on two things: a) Annual income/earnings and b) Credit history.
5. If I am already an account holder with IDBI, will I be eligible for any benefit while applying for the business loan?
Yes, an existing relationship with the bank with which you are applying for a business loan helps. Benefits like priority processing of business loan are available to you.
6. Do I need to provide any security for availing business loan from IDBI?
Varied types of business loans have different clauses for pledging of security for loan amount like land, property, business inventory, etc. However, please note that no security is needed while applying for a business loan from Bank of Baroda for loan amounts of up to Rs.20 lakhs. Those are collateral-free loans.
7. What are the modes of payment I can use to repay my IDBI business loan?
EMIs (Equated Monthly Installments) can be paid in the form of post-dated cheques. ECS is also available where your amount will get deducted every month at a set date. Both modes of payment will ensure that you do not miss the due date. It’s a proactive measure to assure timely payment.
8. What are the interest rates offered by IDBI for a business loan?
IDBI offers business loans at interest rates starting at 13%. Credit scores and annual income of applicants are taken into consideration.