The ICICI Bank business loans help you to cater to the varying needs of your business. The bank provides unsecured business loans that can be availed for any business upgrade, expansion of existing business, or equipment purchase.
The bank provides a maximum loan amount of INR 2 Crore with flexible repayment tenure and competitive interest rates based on your GST Returns. The below article provides all the information about the ICICI business loan, eligibility, documentation, and everything that you need to know.
Business Loan – Explained
A business loan is a loan product provided by Banks and NBFCs to fund the financial needs of business people. A business loan can be categorised as a secured or an unsecured business loan on the basis of collateral requirements. Whether you want to start a new business, expand your existing business or require funds for any other business-related expense, business loans can be obtained for versatile needs.
While providing a business loan, lenders usually analyse the creditworthiness of the business owner by accessing the credit profile (credit score, financials, GST, Banking and Borrowings) of the Borrower. Both secured and unsecured business loans can be provided to the borrower based on the creditworthiness, loan amount and repayment tenure.
Features & Benefits – ICICI Bank Business Loan
ICICI Bank offers a vast variety of business loans specially designed to meet the fund requirements of the borrowers in every aspect. The bank provides competitive interest rates based on a thorough assessment of the applicant’s business, financials, repayment tenure, and loan amount. Some of the benefits and features of ICICI Business loans are:
- Maximum repayment tenure of up to 5 years i.e. 60 months.
- Provides loan with minimal and standard documentation
- ICICI Bank also provides unsecured loans which do not require you to pledge an asset.
- The Bank offers convenient repayment options.
- ICICI Bank also provides a customer-friendly after-sales service and support.
Interest Rate, Fees & Other Charges – ICICI Bank Business Loan
The interest rate, processing fees, and other charges of the ICICI Bank Business Loan are given below:
| Particulars | Charges |
| Interest rates | Starting @16% |
| Processing fee | 2% of loan amount + Tax |
| Commission on letters | Up to 2% p.a |
| Stamp duty charges | As applicable by the law |
| Foreclosure charges | According to the mentioned terms and conditions |
| Commitment charges | According to the mentioned terms and conditions |
Documentation Required for ICICI Bank Business Loan
The documents required to avail ICICI Bank business loans are:
- Proof of Identity ( PAN Card / Driving License / Passport / Voter ID / Aadhar Card )
- Address Proof ( PAN Card/ Driving License / Passport / Voter ID / Aadhar Card/utility bills )
- Copy of PAN Card
- Entity Proof (Partnership deed/ Shops and Establishment Certificate / Certificate of Incorporation)
- Audited or provisional financials (Last year)
- VAT Returns (in case of provisional financials)
- Projected turnover and current year performance on the entity’s letterhead.
- ITR along with computation of income (Last year)
Eligibility Criteria for an ICICI Bank Business Loan
The eligibility requirements to avail a business loan from ICICI Bank are:
- The age of the loan applicant must be between 28 to 65 years.
- Non-professionals must have a minimum turnover of INR 40 lakhs and professionals must have a turnover of INR 15 lakhs.
- The minimum profit earned after paying taxes must be INR 2 lakhs in the case of proprietorship firms and self-employed individuals and INR 1 lakhs in the case of non-professionals.
- The loan applicant must be in the business for a minimum of 5 years ( 3 years in the case of doctors).
- It is necessary to have an existing relationship with the bank.
ICICI Bank Business Loan EMI Calculator
Factors responsible for ICICI Bank Business Loan Interest Rate
From an applicant’s perspective, it is highly essential to avail a business loan at a good interest rate and flexible repayment tenure. As the loan amount is usually high in the case of business loans, there are several factors that affect the ICICI Bank Business Loan interest rates. These are:
- The Credit Score of the business owner and the company
- Existing relationship with the bank
- Business stability
- Profit and Annual Turnover of the business
- Age of the applicant
How to apply for a business loan with ICICI Bank
You can apply for a Business loan in ICICI Bank, by either visiting their nearest bank branch or going to the bank website and applying for the loan online.
Online Application Process
Visit the official website of ICICI Bank and go to Loans. Select the “business loan” under the personal loan category. Simply click on “Apply Online” and fill in the business loan application form.
Offline Application Process
You can apply for an ICICI Bank Business Loan by visiting the nearest bank branch. Fill in the business loan application form along with all the necessary documents and wait for the disbursal after the loan gets approved.
Frequently Asked Questions
Q.1 What is the interest rate for the ICICI Bank Business Loan?
The ICICI provides an interest rates starting @ 16%.
Q.2 What is the maximum repayment tenure for ICICI Bank Business loans?
The bank offers a maximum repayment tenure of 5 years.
Q.3 What are the two main types of loans?
The two main types of loans are secured loans and unsecured loans.
Q.4 What should be my CIBIL Score to get a business loan?
Generally, a CIBIL score of 750+ is required to get a business loan.
Q.5 Does ICICI provide personal loans for business purposes?
Yes, the bank provides personal loans for business purposes, to self-employed individuals as well.