The IDBI Bank Business Loan is a unique program that is designed to aid small businesses in various ways. In this regard, it is very important to note that this loan is not provided by any bank or financial institution. It is the investment arm of the IDBI Group, an Indian multinational group that deals in commercial banking and money-lending services.
Overview of IDBI Bank
The IDBI is an institution that lends and lends on behalf of other companies. As far as the lending is concerned, the only condition that is imposed upon the lender is that he or she should have at least one hundred thousand pounds of equity in his or her business. In order to qualify for the loan amount, the borrower must ensure that the total assets of the com
pany do not exceed the required limit. Check out the Business loan rate of interest, loan amount, processing fee, prepayment charges, offered by IDBI Bank mentioned in the table:
|IDBI Business Loan interest rate|
|Interest Rate||As per business requirements|
|Loan Amount||Up to Rs. 2 crores, can exceed as per business requirements|
|Processing Fee||Nil, up to Rs. 5 lakh & 1% of the loan amount above Rs. 5 lakh|
|Prepayment Charges||Nil, if own sources and 2% of outstanding amount if the way of takeover by other banks|
Note: An important thing that you should know about the IDBI business loan is that the interest rate is a fixed rate. This means that the amount that you have to pay every month for the loan will not vary in the future. The loan will always be of the same amount every month. If you want to change the terms of the loan agreement, then you will have to contact the lender at the earliest.
Eligibility criteria of IDBI Bank business loan
The amount that is lent is subject to the discretion of the lender as well as the credit ratings of the borrower. As such, he may approve the loan amount or decline it. There are certain criteria that the lender checks while approving loans and one of these criteria are the credit rating of the borrower. As such, if you want to secure a competitive rate of interest and are deferring the monthly repayments for a longer duration, then you will have to make sure that your credit ratings are up to the mark.
- The applicant must between 21 years up to 65 years of age for the loan approval process.
- The tenure for the business should be minimum of 3 years.
- The annual turnover should be starting from Rs. 30 lakhs up to 10 crores.
List of the candidates who can offer IDBI business loan with business registration under the following categories:
- Proprietorship Firm
- Limited Liability Partnership
- Private Limited Companies
Why people choose IDBI Bank business loan applications?
If you are looking forward to securing the IDBI business loan online, then there are various reasons why you should go in for this. For any user such as starters or the individual, listed are few points mentioned under which they need to fulfill:
- For starters, you will have to submit the loan application online. It is impossible for a traditional lender to do so because of various complexities that may be involved. This means that they will take a lot longer to get back to you.
- On the other hand, an online lender will get in touch with you within 24 hours of the submission of the loan application.
- Then, you will have to pay very low-interest rates on your IDBI business loan. The reason why they are offering such a loan at such low-interest rates is because of the fact that they have reduced the risk involved in the lending process.
- They will lend you the money knowing that the risk of not getting the money back is minimal. Since they will have little or no capital investment in the bank, they will have to charge a very low-interest rate. Hence, you will be able to secure the entire loan amount at very low-interest rates.
- Another reason why you should get your IDBI loan application approved instantly is that lenders offer loans at competitive interest rates.
- Since they have low investments in the bank, they can offer competitive interest rates. Hence, this means that if you have a good credit rating, then you will be able to secure a competitive interest rate.
- If your credit ratings are poor, then you will have to work harder so as to get the loan approved.
Check your credit score before applying for an IDBI business loan
With the help of checking credit score for applying for IDBI Bank business loan in an easy way. The main part for checking the credit score before applying for an IDBI Bank business loan:
- The main thing that you should know about the IDBI business loan is that the entire processing of the loan application is very fast.
- The lender will only need a faxed copy of your credit report.
- Once your credit report is faxed to them, then they will immediately process your loan application.
- This will help you to know, that your loan application will be approved without even contacting you.
- All you have to do is sign some papers when the lender gives you the approval and the money will be transferred to your account without any hassle.
All in all, getting an IDBI business loan is quite easy. There are very few things that you need to consider before applying for the loan. The primary thing that you need to do is ensure that your credit ratings are excellent. This means that you must make all your repayments on time. If you do not have any credit ratings, then you can still apply for an IDBI business loan. All you have to do is search on the internet to find a lending company that will help you with your business venture.