IDBI Bank Business Loans

Do you want to scale up your business to new heights, or are you perhaps waiting for that perfect opportunity to run your business in top gear? IDBI is here to provide you with business loans and support you in fulfilling your dreams. Propel your business forward by choosing IDBI Business Loans, which offer a host of benefits. The bank provides tailor-made loans to meet its customers’ diverse business requirements. It also provides doorstep service and hassle-free documentation.

Interest Rate and Other Fees

• Interest rate: 13%

• Processing fee: Up to 1% of the loan amount

Types of IDBI Business Loans

MSME Finance

IDBI offers these loans to small businesses. It not only finances MSMEs, but also takes care of all their banking needs under one roof. The bank has a full range of banking products and services on offer for MSME Entrepreneurs.

Features and Benefits

• Provides complete banking solutions

• Attractive interest rate

• Faster credit delivery

• Hassle-free process

Finance to Medical Practitioners

IDBI has designed this loan facility specially for the doctors, to fulfill the day-to-day business requirements involved in running a clinic or a hospital. 

Features and Benefits

• Overdraft/cash credit facility offered to meet working capital requirements

• Term loan offered to purchase specialized medical equipment, for the expansion of an existing clinic/hospital, for setting up a new clinic/hospital, etc.

• Loan amount: Rs. 50,000 - Rs. 2 crores

• Flexible loan tenure of up to 7 years for term loans

Eligibility

• All doctors/medical practitioners with a minimum qualification of MBBS/BAMS/BDS/BHMS.

• Collateral:  Mortgage of commercial/residential properties of appropriate value.

• Personal guarantee of the promoter/director

• Processing fee of upto 1% of the loan amount

Loan to Small Road and Water Transport Operators

This product finances various transport operators to get small fleets of vehicles/vessels.

Features and Benefits

• Cash credit/overdraft, term loan, and bank guarantee options are offered.

• Loan amount: Rs.1 lakh - Rs.2 crore

• The tenure for OD/CC/BG is 12 months, and for a term loan, it is up to 5 years.

Eligibility

• All passenger/goods transport vehicles including auto-rickshaws, taxi-cars, light commercial vehicles, motor-buses, and trucks. Small refrigerated vans, bulk carriers to carry edible oil/petroleum. Water transport units like small boats, launches, etc.

• Relevant experience in the transport business

• Collateral of immovable/liquid security

Sulabh Vyapar Business Solutions

This product provides hassle-free finance to traders to meet their business requirements at competitive interest rates. Any individual or firm (partnership/proprietorship) that is engaged in buying and selling of goods is eligible.

Features and Benefits

• Funds-based loans are offered through overdraft/cash credit/term loan/bill discounting.

• Non-fund-based loans are offered through a letter of credit/bank guarantee.

• Loan amount: up to Rs. 500 lakh

Eligibility

• Wholesale and retail traders, distributors, and dealers are eligible

• Security: 

  • Primary: Hypothecation of stocks, assets, and receivables financed by the bank. 

  • Collateral:

    • Immovable residential/commercial property

    • The loan amount offered is up to 90% of the property value

Vendor Finance Program

IDBI’s ‘Vendor Finance Program’ is designed so that the links in the value chain remain adequately funded for smooth functioning of the business.

Features and Benefits

• Provides overdraft/cash credit/bill discounting/financing against invoices and letter of credit.

• Funds the manufacturing and receivable cycle.

Eligibility

• Vendors of large corporates/original equipment manufacturers.

• Security:

  • Hypothecation of entire current assets for working capital

  • Specific charges on assets created out of bank finance/complete fixed assets for a term loan

  • Bill discounting

Laghu Udyami Credit Cards

This scheme is for existing borrowers who are artisans, retail traders, professionals, or self-employed individuals; or belong to micro/small individual units or village industries, who have had a satisfactory relationship with the bank for the last three years. 

Features and Benefits

• Only working capital is offered in the form of overdraft/open cash credit

• Loan amount of up to Rs.10 lakhs

• Repayment on demand (however, the limit would be valid for a period of 3 years)

Eligibility

• All existing customers with satisfactory dealings with IDBI for the last 3 years

• Hypothecation of stock, receivables, equipment, machinery, etc., as specified for the limits

General Credit Card Loan

IDBI GCC Loan is available for those individuals who are engaged in non-farm entrepreneurial activity. 

Features and Benefits

• Helps to meet the credit requirements of borrowers.

• The loan amount offered is between Rs. 50,000 and Rs. 5,00,000

• Loan tenure for the term loan is up to  5 years, and for cash credit, it is 12 months.

Eligibility

• Individuals who are engaged in a non-farm entrepreneurial activity are eligible.

• Security: 

  • For term loan: Assets acquired out of the bank loan.

  • For cash credit: Stocks, book-debts, and all assets created out of the bank loan.

IDBI Mudra Loan

MUDRA Loan, which comes under the Pradhan Mantri Mudra Yojna (PMMY), is to finance the credit requirements of all non-farm income-generating activities.

Features and Benefits

• Overdraft/cash credit is offered to meet working capital requirements.

• Term loan is offered to meet CAPEX, including the purchase of equipment/furniture or any such business needs.

• The loan amount is offered up to Rs. 10 lakhs.

• Loan tenure for OD & CC is 12 months, and for a term loan, it is 5 years.

Eligibility

• Individuals/MSMEs involved in non-farm entrepreneurial activities across the country.

• No collateral requirement.

• Processing fee: 

  • Nil for loan up to Rs. 5 lakh.

  • Up to 0.50% for others.

Stand Up India

The objective of this scheme is to promote entrepreneurship among the SC/ST and women. It aims to create job opportunities and facilitates eligible borrowers to avail loans between Rs. 10 lakhs and Rs. 100 lakhs for greenfield projects.

How to Apply for IDBI Business Loans

Applying for an IDBI Business Loan is quite simple. 

Apply for IDBI Business Loan Online

• Visit the IDBI Business Loan online application page.

• Select ‘Yes’ if you are an existing customer, or else select ‘No.’

• If ‘Yes,’ enter your customer ID, personal details, type of loan. Then agree to the terms and conditions and click on submit.

• If ‘No,’ enter your personal details, the type of loan, authorize IDBI to contact you, and click on submit.

• An IDBI customer care representative will then contact you and guide you through the process.

Apply for IDBI Business Loan Through Branch

• Visit the nearest IDBI Bank.

• Request for a Business Loan application form.

• Fill in the form with the required details.

• Submit it along with the required documents.

• After verification, your loan request will be processed and approved/rejected.

Documents Required for IDBI Business Loans

Here is the list of the documents required to apply for HDFC Business Loans.

• PAN Card of the Individual/Company/Firm

• For identity proof:

  • PAN Card

  • Aadhaar Card

  • Voter's ID Card

  • Passport

  • Driving License

• For address proof:

  • Voter's ID Card

  • Aadhaar Card

  • Driving License

  • Passport

• Bank statement for the last six months.

• Latest ITR along with balance sheet, computation of income, and profit & loss account for the last two years, which has been CA certified/audited.

• Form 60 for the Applicant/Co-applicant/Guarantor.

• Proof of continuation (ITR/Establishment/Trade license/Sales Tax Certificate)

• Other documents. 

  • Sole Proprietorship Declaration or certified copy of partnership deed.

  • Board resolution (Original)

  • A certified true copy of Memorandum and Articles of Association (certified by the Director).

Interest Rates of Top Banks Offering Business Loans 

Bank	Interest Rate	Processing Fee
SBI	11.20% - 16.30%	2% to 3%
Axis Bank	15.50% - 24%	Up to 2%
HDFC	15.65% - 21.20%	Up to 2.5%
ICICI	12.90% - 16.65%	Up to 2%
Citibank	16% - 18.99%	Up to 2%
Yes Bank	16.25% - 19.99%	Up to 2%
PNB	12.65% - 16.65%	Up to 1.8%
IDBI	13%	1%
Kotak Bank	16% - 19.99%	Up to 2%
IndusInd	14%	Up to 2.5%
Andhra Bank	9.15% - 16%	1% to 3%
RBL	20% onwards	Up to 3%
Canara Bank	10.50% - 18%	Up to 1%
Bank of Baroda	14.10%	Up to 1%

FAQs

How much loan amount can I avail as an IDBI Bank Business Loan?

You can avail an amount between Rs.50,000 and Rs.2 crores.

How can I repay my IDBI Bank Business Loan?

You pay the loan through EMI, ECS, or auto-debit from your IDBI Bank account.

What is the security required to avail an IDBI Business Loan?

The security or collateral depends on the type of loan.

What is the interest rate for IDBI Business Loans?

The interest rate is determined based on your business profile, track record, loan amount, and tenure.

Can I apply for a loan for my new business at IDBI?

No, you cannot apply for a loan for a new entity.