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IDBI Business Loan Jul 2021

IDBI Business Loan Interest Rates India

Last Updated 19th Jul 2021

IDBI Bank offers Business Loan starting at interest rate of 12.25%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 12.25%
Processing Fee 1.00%
Tenure From 12 months to 60 months
Lowest EMI per lakh ₹ 2,237
Loan Amount Min ₹ 50,000 and Max ₹ 5 Lakh
Part Payment Facility Allowed after 1 EMI's,
Foreclosure Facility Allowed after 1 EMI's, Before 6 months - 2%, After that Nil prepayment charges
Apply for Business Loan @ 14.00%*

IDBI Business Loan Details

IDBI Bank offers multiple business loan products for self-employed professionals and non-professionals at low rates. Below-mentioned are the details of the business loan IDBI Bank.

Key Features of IDBI Business Loans
  • Purpose of Loan: You can avail IDBI business loan to expand or modernise your business, purchase assets, set up new units etc.
  • Loan available for self employed professionals and non-professionals.
  • Borrowers within the age group of 22 and 58 years can avail IDBI business loan.
  • Security: Both Secured & Unsecured
  • Loan Tenure can range from 12 to 60 years.
  • IDBI business loan interest rates are in the range of 12.25% to 13.50 %.
  • IDBI Bank business loan EMI per lakh starts from ₹ 2,237.
  • Processing Fee: 1.00%
  • Special schemes: Some of the special business loan offers of IDBI are:

Factors affecting IDBI Business Loan Rates

There are multiple factors on which IDBI Bank calculates your interest rate. Some of these factors are -

Loan amount

Business loan rate in IDBI Bank depends upon the loan amount you apply for. Higher the loan amount, lesser will be the interest rate. Bank gives loan of minimum ₹ 50,000 to upto ₹ 5 Lakh. Interest rate for high loan amounts can be lower resulting in lower EMIs.

CIBIL Score

IDBI Bank offers business loans at higher interest rate if your CIBIL score is low or vice versa. However, to get a loan from IDBI Bank, your CIBIL score should be at least 700. Higher the CIBIL Score, higher the chances of getting a loan at lowest business loan interest.

Revenue

IDBI Bank will offer you a loan at a lower interest rate if you have higher monthly revenue. Bank gives loan to the borrowers whose annual turnover is at least ₹ 30,00,000

Time in Business

IDBI Bank offers loans at lower rates if you have significant business experience. Minimum business existence to get a business loan from IDBI Bank is 36 months.

Lowest IDBI Bank Business Loan Interest Rates

With effect from 31 Mar, 2021, IDBI Bank offers business loans starting at 12.25%. The lowest business loan rates offered by IDBI Bank have been dropped by 0.75%, from the earlier rate of 13.00%.

IDBI Bank Business Loan Rate Trends of Last 1 Year

Last Updated Date Interest Rates
31 Mar, 2021 12.25%
25 Mar, 2021 12.25%
07 Jan, 2021 12.25%

IDBI Business Loan Eligibility Criteria

To avail IDBI Bank business loan, you need to fulfill the eligibility criteria as mentioned below:

  • Age : IDBI Bank offers business loan to those who are at least 22 years old at the time of loan approval and maximum 58 years at the time of loan maturity.
  • Loan Amount : Based on the loan amount eligibility, IDBI Bank gives you loan amount ranging from ₹ 50,000 to ₹ 5 Lakh. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Profitability and Revenue : IDBI Bank requires profit for minimum 2 years and minimum business turnover of ₹ 30,00,000.
  • Business Stability : IDBI Bank requires a minimum business track record of 36 months. The bank will also look for minimum growth in sales for the last three year. A decline in sales for a certain period or below a certain limit might impact your eligibility to get a loan.
  • ITR and Banking : IDBI Bank gives loan only after checking your income tax return and bank statements. The bank requires you to submit your ITR details and bank statements for a minimum of 24 months & 6 months respectively.
  • CIBIL Score : IDBI Bank will check your repayment history for all current and past loans and credit cards. The Bank advises you to maintain a score of 750 and above to get loan approval.

IDBI Bank Business Loan Products

IDBI Bank offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Sulabh Vyapar Business
  • Get facilities like overdraft/ cash credit/ Term Loan/ Bill Discount/ Letter of Credit/ Bank Guarantee
  • Get loan maximum up to ₹ 5 crore
  • Competitive interest rates
Mudra Loan
  • Overdraft/ cash credit and term loan facility available
  • Get loan up to ₹ 10 lakhs
  • Nil processing fee for loan amount up to ₹ 5 lakhs

IDBI Bank Business Loan Fees and Charges

In addition to interest rates, business loan also carry some other charges which include:

  • Foreclosure Charges : These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. IDBI Bank allows prepayment of loan after paying 1 EMI’s with prepayment charges - Before 6 months - 2%, After that Nil prepayment charges
  • Processing Fee : IDBI Bank asks for a processing fee of 1.00% with applicable service tax

Documents Required for IDBI Business Loan

To apply for IDBI business loan, you need to submit the following documents:

  • Address proof of individual: Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement , utility bills
  • Identity proof of individual: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card
  • Business existence proof: PAN, sales tax/ excise/ VAT/ service tax registration, copy of partnership deed, trade license, certificate of practice, registration certificate issued by RBI, SEBI
  • Copy of Income Tax PAN for 24 months
  • Bank statement of last 6 months

IDBI Business Loan Eligibility Calculator

You can calculate your eligibility for IDBI Bank business loan using an online IDBI business loan eligibility calculator. It is an online tool that gives you an estimate about your loan eligibility, amount of loan and the best interest rate offer you can avail. It calculates the business loan eligibility on multiple factors. These factors include age, loan amount, loan tenure and Income etc. to calculate the loan amount eligibility of its borrowers.

How to Apply IDBI Bank Business Loan Online at MyLoanCare?

  • In order to get the best offers on a business loan and compare IDBI business loans with other banks, you can apply online through MyLoanCare here.  
  • MyLoanCare will give you a detailed comparison of business loan schemes of all banks, calculate your business loan eligibility and connect you to the customer representatives of the  IDBI Bank.
  • Further, you will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting a loan is smooth, convenient and quick.

FAQs

Why to take business loan from IDBI Bank?

IDBI Bank is one of the largest Public Sector Bank sector banks in the country that provides lowest business loans starting at 12.25%. The bank also charges a low processing fee starting from 1.00%. Along with that, the bank also offers special business loan schemes such as Sulabh Vyapar Business, Mudra Loan & etc.

Has IDBI Bank reduced the business loan interest rate?

IDBI Bankhas reduced the lowest interest on business loan as effective from 31 Mar, 2021. Presently, IDBI Bank offers the business loan starting at 12.25%, which is a decrease of 0.75% from the previous rates of 12.25%. Earlier, IDBI Bank changed its gold loan rate on 09 04, 2020.

What is the interest charged on IDBI Bank business loan?

IDBI Bank offers business loans at attractive rates ranging from 12.25% to 13.50%.The bank also provides various customised offers for self employed professionals to get loan at a very low rate of interest.

What is the lowest EMI per lakh on business loan from IDBI Bank?

If you apply for loan from IDBI Bank, your lowest EMI per lakh will be ₹ 2,237.You can calculate your EMI on business loan for different tenures at min business rate starting at 12.25% using MyLoanCare business loan EMI calculator.

What is the minimum and maximum tenure of business loan in IDBI Bank?

These loans are shorter tenure loans. You can repay your loan in a flexible period of minimum 12 months to maximum 60 months.

How much business loan amount I can borrow from IDBI Bank?

IDBI Bank offers you business loan for loan amount ranging from ₹ 50,000 to a maximum amount of ₹ 5 Lakh. Loan amount eligibility in IDBI further depends upon your income, and repayment capability.

What is the processing fee charged by IDBI Bank on business loan?

IDBI Bank charges a processing fee 1.00% with applicable tax.The processing can be negotiated if you are an existing customer or have a good track record.

Is age an eligibility factor to get loan for business from IDBI Bank?

Yes, age is an important eligibility factor to get a business loan as you should be at least 22 years old at loan approval time and 58 years old at loan maturity time.

What are the prepayment charges on business loan from IDBI Bank?

Bank charges a prepayment fee in case you want to repay your entire loan amount before the end of tenure period. The fee charged by IDBI Bank is Before 6 months - 2%, After that Nil prepayment charges.

What are the business products offered by IDBI Bank?

IDBI Bank offers various business products for self-employed professionals and non-professionals. These are listed below:

  • Sulabh Vyapar Business
  • Mudra Loan

What is the time period of repayment of business loans in IDBI Bank?

IDBI Bank provides business loans for a maximum tenure of 60 years. You must repay your loan at the end of this loan tenure to avoid any late payment penalty.

IDBI Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 1800-200-1947
Ahmedabad 1800-200-1947
Ambala 1800-200-1947
Anand 1800-200-1947
Aurangabad Bihar 022 2207 8732

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IDBI Business Loan News - Jul 2021
  • 2021-01-15 : IDBI Bank reported Rs 378-crore profit
    IDBI Bank posted a net profit of Rs 378 crore for the December quarter. The loans which includes home, LAP, personal, car, two-wheeler, gold, education and doctor loan along with business and mudra loans fell 7% to Rs 1.6 lakh crore (y-o-y) in December 2020. The bank’s total deposits which includes fixed and recurring deposits rose 2.85% y-o-y to Rs 2.24 lakh crore at the end of December 2020. In addition to this, CASA improved to 48.97% as on December 31, 2020.
  • 2020-07-28 : IDBI Bank reported Q1 net profit of ₹144 crore
    IDBI Bank reported Rs 144 crore net profit for June quarter on account of a reversal of Rs 1335 crore of bad loan provisioning. It is IDBI second successive net profit after 13 consecutive quarters of loss. CASA increased to ₹ 1,04,315 crore and cost of deposit which includes fixed and recurring deposits improved by 64 bps to 4.65%. In addition to this, NII bolstered by home, personal, gold, car and two-wheeler loan along with business and mudra loans stood at ₹ 1,773 crores.
  • 2017-06-03 : IDBI Bank to sell Rs. 5,000 crore of non-core assets
    IDBI Bank has announced that it will sell Rs. 5,000 crore of its non-core assets. The bank has decided to take this move after RBI has invoked prompt corrective action (PCA) against it over rising non-performing assets (NPAs) and negative return on assets (RoAs). Simultaneously, the bank is also planning to achieve strong growth in its retail and priority sector lendings.
  • 2017-05-26 : IDBI Bank crafts turnaround strategy with focus on raising capital and NPA recovery
    IDBI Bank has set out a turnaround plan with a focus on raising additional capital and recovering its non-performing assets. Simultaneously, it is also planning to restrict its growth in corporate loan book and continue its focus on increasing retail and priority sector lendings. With this move, the bank will be able to improve its financial position by re-balancing its loan portfolio.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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