BOI Business Loan Apply, BOI Business Loan interest : Bank of India extends business loans to individuals, proprietors, partnership firms, and limited companies, facilitating the growth and enhancement of their existing operations. These loans have a maximum tenure of 7 years and can be approved for up to ₹5 crores. Boi business loan eligibility Every business, at some point, must explore external funding options to meet various financial needs.
Whether it’s diversifying product lines, expanding services, venturing into new geographic regions, managing day-to-day activities, acquiring assets such as land, machinery, or making technological investments, the reasons for seeking external funding are diverse.
Bank of India (BOI) stands as a prominent player in the market and is among the leading public sector banks in India. BOI offers a wide range of businessloan options, recognizing that the financial requirements of businesses can vary significantly depending on their industry or functional area. Below, we outline some of the types of business loans provided by BOI.
Contents
BOI Business Loan Feature
| Feature | Loan for Self Employed |
|---|---|
| Processing Fee | From 2% to 3% or ₹500 – ₹10,000 |
| Tenure | From 12 months to 48 months |
| Lowest EMI per lakh | Rs. 2,594 |
| Loan Amount | Min ₹5 Lakh and Max ₹5 Crore |
| Part Prepayment Charges | 3% |
| Early Foreclosure Charges | Allowed after 6 EMI’s, 3% |
Advantage Of Bank Of India Business Loans
- Lowest interest rates, with interest calculated on a daily reducing balance.
- Transparent: No hidden costs or administrative charges.
- Minimal processing charges, equivalent to just 2%-3% of the loan amount.
- No need for collateral, resulting in minimal documentation requirements.
- No prepayment penalties, allowing you to reduce interest expenses by prepaying the loan (a 1% charge applies if repaid before 6 months).
- Flexible repayment period of up to 48 months.
Bank Of India Business Loan Eligibility Criteria
The bank has established specific Boi business loan eligibility to assess a borrower’s eligibility for business loans. BOI Business Loan Eligibility Among the crucial criteria are:
| Eligibility Criteria | Description |
|---|---|
| Age | 21 to 65 years |
| Minimum Turnover | ₹20 Lakh |
| Business Existence (in months) | 36 months |
| ITR (Income Tax Return) (months) | 24 months |
| Loan Amount | ₹5 Lakh to ₹5 Crore |
| Loan Tenure | 48 months |
| Owned House or Place of Work | Not Required |
| CIBIL Score | 750 and above |
Other charges For BOI Business Loan
Besides the interest rates, business loans also entail additional charges, including:
- Foreclosure Charges: These fees are applicable if you wish to repay the entire loan amount before the agreed-upon tenure ends. BOI permits prepayment after completing 6 EMIs, subject to a prepayment charge of 3%.
- Processing Fee: BOI requires a processing fee ranging from 2% to 3%, inclusive of applicable service tax.
BOI Business Loan 2023
| Loan Scheme | Eligibility | Quantum | Tenure |
|---|---|---|---|
| Star Laghu Udyami Samekit Loan | Micro & Small Enterprises in rural, semi-urban, urban, and metro areas | Rural Areas – ₹5,00,000 | |
| Semi-urban Areas – ₹10,00,000 | |||
| Urban Areas – ₹50,00,000 | |||
| Metro Areas – ₹1,00,00,000 | Maximum: 5 years | ||
| Star SME Liquid Plus | Proprietorship / Partnership firms, Limited Companies, engaged in the business for the past 3 years having audited financial statement of accounts. The unit/borrower should have sufficient source of funds to pay the margin and initial recurring expenses. The business should be profit-making for the last 2 years. The credit rating should meet the standardized criteria set by the bank. | Minimum – ₹10,00,000 | |
| Maximum – ₹5,00,00,000 | Maximum: 7 years | ||
| SME Auto Express | All existing SME units, as per the new definition, run by Individuals, Proprietorship/Partnership firms, Limited Company, Trust, Society. The unit/borrower should have sufficient net worth/source of funds to pay the margin and initial recurring expenses. Conduct of the existing account must have been satisfactory. The credit rating should meet the standardized criteria set by the bank. | Not specified | Maximum: 7 years |
| Star SME Term Loan | Micro & Small Enterprises in rural, semi-urban, urban, and metro areas. | Rural Areas – ₹5,00,000 | |
| Semi-urban Areas – ₹10,00,000 | |||
| Urban Areas – ₹50,00,000 | |||
| Metro Areas – ₹1,00,00,000 | Maximum: 5 years |
BOI Business Loan Calculator
Boi business loan calculator: For instance, let’s consider an individual who secures a loan of ₹50,00,000 from a bank to bolster their business over a 3-year span. The repayment will occur through 84 monthly installments, inclusive of accrued interest. The bank has extended the loan at an annual interest rate of 10.20% p.a. To understand the EMI calculations, please review the details provided below.
Table Displaying EMI, Total Interest Paid, and Overall Repayment Sum
| LOAN AMOUNT | INTEREST RATE | TENURE | MONTHLY INSTALMENT | TOTAL INTEREST AMOUNT | TOTAL AMOUNT |
|---|---|---|---|---|---|
| ₹ 50,00,000 | 10.20% | 1 | ₹ 4,40,045 | ₹ 2,80,536 | ₹ 52,80,536 |
| ₹ 50,00,000 | 10.20% | 2 | ₹ 2,31,186 | ₹ 5,48,475 | ₹ 55,48,475 |
| ₹ 50,00,000 | 10.20% | 3 | ₹ 1,61,806 | ₹ 8,25,010 | ₹ 58,25,010 |
Monthly Installment, Total Interest Amount, Total Amount Repaid (Interest + Principal)
Required Documents For BOI Business Loan 2023
- Address proof for individuals: Voter’s ID Card, Aadhar Card, bank statement, registry copy, rent agreement.
- Identity proof for individuals: Driving License, PAN Card, Aadhaar Card, passport, Voter’s ID Card.
- Proof of business existence: PAN, Goods and Services Tax (GST) registration, copy of partnership deed, certificate of practice, registration certificate issued by RBI, SEBI, trade license.
- Income Tax PAN copy for the last 24 months.
- Bank statement for the last 6 months.
Direct Link to Apply: Click Here
FAQ?: BOI Business Loan
BOI Bank’s business loan offers highly competitive interest rates, ranging from 11.20% to 16.30%. The bank provides special offers to self-employed professionals, enabling them to access loans at exceptionally low-interest rates.
These loans are categorized as short-term loans. You have the flexibility to repay your loan within a timeframe ranging from a minimum of 12 months to a maximum of 48 months.
BOI Bank provides loans with a minimum amount of Rs. 5 lakh and a maximum amount of Rs. 5 crore, catering to a wide range of financing needs.
The bank extends loans at an attractive interest rate of 11.20%, providing the lowest EMI of Rs. 2,594 per lakh. If your current EMI exceeds this amount, you have the option to consider a balance transfer, allowing you to shift your loan to BOI for more favorable terms.