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One of the top commercial banks, Bank of India, has significantly increased both its domestic and global footprint during the past few years. A variety of banking and financial products, including several kinds of MSME loans to people, sole proprietors, businesses, and enterprises, are offered by Bank of India to its clients.
Every MSME business activity in the manufacturing, service, and commerce sectors is catered to by a wide selection of business loan packages offered by the Bank of India. The interest rate for a business loan from the Bank of India begins at just 9.70% p.a. and, depending on the scheme selected, the loan amount may reach INR 5 crores.
Imagine if you had a duffle bag full of cash with a rupee sign and every time your business needed investment, you could reach in and get the amount required. Bank of India business loan is the duffle bag full of money. The Bank of India business loan interest rate is alluring and provides a perfect solution to all your business problems. Get in-depth knowledge of this page to understand the process to apply for Bank of India business loan.
The following are the benefits and features of the business loan offered by the Bank of India:
Following are the Bank of India business loan eligibility criteria:
When you apply for Bank of India business loan, the following factors can affect your eligibility:
There are chances that the bank will reject your loan application if you cannot demonstrate the length of your business’s history. The total years the organisation has been providing the product or services plays a vital role in loan approval. Some banks want a lengthy vintage period, which you may demonstrate using your ITR.
The company’s yearly revenue determines the size of your business loan. If you wish to take out a long-term, large-amount company loan, you must have a high turnover. The turnover will determine the loan amount, and as a result, it will impact your eligibility to receive the loan.
The lenders request evidence of your identification, company history, income, and address. Therefore, you must attach all relevant documents to the back. The finance provider might reject your business loan application if you fail to present the paperwork linked to the proofs mentioned earlier. Therefore, the paperwork may also greatly impact your ability to obtain a bank loan for your company.
The financial flow into the business operations is a key factor in evaluating eligibility. The bank will minimise the eligibility requirements if your business has a strong cash flow. So that there is still liquidity in the company, you must effectively manage your cash flow.
When you apply for Bank of India business loan, you might have to pay the following charges.
A bank charges a processing fee when they process your loan request. The processing fee charged by Bank of India are:
| Loan Amount | Semi-Urban and Rural Branch Charges | Metro and Urban Branches Charges |
| Less than INR 1 lakh | Nil | Nil |
| INR 1 lakh or more | INR 250/lakh up to INR 12.5 lakh | INR 300/lakh up to INR 20 lakh |
Note: The above processing fee is provided as of September 2022. The rates may change.
The documentation charge is a non-refundable fee you must pay to the bank to prepare the documents. The documentation charges charged by the Bank of India are:
| Amount of Loan (in INR) | Charges (in INR) |
| Up to INR 1 lakh | Nil |
| INR 1 lakh – INR 5 lakh | 1,000 |
| INR 5 lakh – INR 10 lakh | 2,000 |
| INR 10 lakh – INR 25 lakh | 3,000 |
| INR 25 lakh – INR 100 lakh | 5,000 |
| INR 1 crore – INR 5 crore | 10,000 |
| INR 5 crore – INR 10 crore | 20,000 |
| INR 10 crore and above | 30,000 |
Note: These documentation charges are provided as of September 2022. The rates may change.
The documents required for Bank of India business loan are:
Factors affecting Bank of India’s business loan interest rate are:
The credit score is a major factor that assesses a borrower’s creditworthiness. It is a numerical representation of how much a lender can count on a borrower to make repayments. If the credit score is good, the borrower can find it easier to get the best financing for their business. Credit scores range from 300 to 900. Experts recommend having a CIBIL score of 750 or above to qualify for a new company loan.
Your past payback history significantly affects interest rates on business loans. You have a better chance of receiving a lower interest rate if your repayment history is solid. Even if your credit score is excellent, your repayment history is not; thus, the lender may choose to charge a high or low-interest rate.
Any financial institution may charge you a lower interest rate if you are an established and loyal customer. Because a satisfied consumer is what every financial institution wants, therefore, always work to make your partnership ideal so that you can benefit from the low-interest rate option.
Each lender bases its business loan interest rate on the annual business turnover. The lender will reduce the EMI amount and interest rate if the business turnover is large. However, if it is low or not to the lender’s liking, you will charge a higher interest rate and the EMI amount would be higher.
Before determining the interest rate, the lender always looks at your company’s monthly, quarterly, and annual revenue. The lender company claims that the revenue is used to determine the loan interest rate. The lender can approve your loan application if they don’t make any excellent money, but they’ll charge you a higher interest rate.
It is advisable to calculate Bank of India business loan EMI through an online EMI calculator. However, if one is persistent in doing the manual computation, then use the following mathematical expression:
EMI = P × r × (1 + r)n/((1 + r)n – 1)
Here, ‘P’ depicts the Principal amount, ‘r’ depicts the rate, and ‘n’ depicts the tenure.
The following table compares the Bank of India’s and other lenders’ interest rates:
| Name of the Bank or NBFC | Rate of Interest |
| Bank of India | 10.20% onwards |
| HDFC Bank | 10.00% – 22.50% p.a. |
| FlexiLoans | 1% per month onwards |
| ZipLoan | 1% – 1.5% per month (Flat ROI) |
| Axis Bank | 14.25% – 18.50% p.a. |
| IDFC First Bank | 14.50% onwards |
| Kotak Mahindra Bank | 16% – 19.99% |
| Fullerton Finance | 17% – 21% |
| Bajaj Finserv | 17% p.a. onwards |
| RBL Bank | 17.50% – 25% p.a. |
| ICICI Bank | 17% onwards |
| Indifi Finance | 1.5% per month onwards |
| Lendingkart Finance | 1.5% – 2% per month |
| Tata Capital Finance | 19% p.a. onwards |
| NeoGrowth Finance | 19% – 24% p.a. |
| Hero FinCorp | Up to 26% p.a. |
Bank of India has the following customer care details. Their users can reach out to these service providers 24×7.
Head Office: Bank Of India, Star House, C – 5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051.
Phone Number: 022- 40919191
Telephone Number – 1800 220 229 / 1800 103 1906 / (022) – 40919191 (chargeable)
Bank of India has an appreciative business loan interest rate. The rate of interest starts from 9.7% based on the scheme.
The rate of interest starts from 9.7% based on the scheme.
The most appreciated benefit of the Bank of India business loan is that each scheme aims to assist the various needs of a business.
No, the Bank of India does not have a fixed interest rate on a business loan.
Documents acting as proof of residence and identity have to be submitted.
You will have to visit the official website of the Bank of India in order to apply for a business loan online.
To check the status of your business loan in the Bank of India, you must log in to your account with the Bank of India.
Yes, Bank of India checks for CIBIL Score for a business loan.
The maximum business loan amount you can get from the Bank of India is INR 5 crore.
You will have to submit documents acting as identity proof and residence proof.