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IOB Business Loan Jul 2021

IOB Business Loan Interest Rates India

Last Updated 23rd Jun 2021

Indian Overseas Bank offers Business Loan starting at interest rate of 11.00%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 11.00%
Processing Fee upto 3% of the loan amount
Tenure From 12 months to 60 months
Lowest EMI per lakh ₹ 2,174
Loan Amount Min ₹ 50,000 and Max ₹ 10 Lakh
Part Payment Facility Allowed after 1 EMI's,
Foreclosure Facility Allowed after 1 EMI's, Nil prepayment charges
Apply for Business Loan @ 14.00%*

IOB Business Loan Details

Indian Overseas 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 Indian Overseas Bank.

Key Features of IOB Business Loans
  • Purpose of Loan: You can avail IOB 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 21 and 58 years can avail IOB business loan.
  • Security: Both Secured & Unsecured
  • Loan Tenure can range from 12 to 60 years.
  • IOB business loan interest rates are in the range of 11.00% to 15.00 %.
  • IOB Bank business loan EMI per lakh starts from ₹ 2,174.
  • Processing Fee: upto 3% of the loan amount

Factors affecting IOB Business Loan Rates

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

Loan amount

Business loan rate in Indian Overseas 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 ₹ 10 Lakh. Interest rate for high loan amounts can be lower resulting in lower EMIs.

CIBIL Score

Indian Overseas Bank offers business loans at higher interest rate if your CIBIL score is low or vice versa. However, to get a loan from Indian Overseas 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

Indian Overseas 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

Time in Business

Indian Overseas Bank offers loans at lower rates if you have significant business experience. Minimum business existence to get a business loan from Indian Overseas Bank is 0 months.

Lowest Indian Overseas Bank Business Loan Interest Rates

With effect from 23 Jun, 2021, Indian Overseas Bank offers business loans starting at 11.00%. The lowest business loan rates offered by Indian Overseas Bank have been dropped by 3.9%, from the earlier rate of 14.90%.

Indian Overseas Bank Business Loan Rate Trends of Last 1 Year

Last Updated Date Interest Rates
23 Jun, 2021 11.00%
31 Mar, 2021 14.90%
25 Mar, 2021 14.90%
07 Jan, 2021 14.90%

IOB Business Loan Eligibility Criteria

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

  • Age : Indian Overseas Bank offers business loan to those who are at least 21 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, Indian Overseas Bank gives you loan amount ranging from ₹ 50,000 to ₹ 10 Lakh. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Profitability and Revenue : Indian Overseas Bank requires profit for minimum 2 years and minimum business turnover of ₹ 0.
  • Business Stability : Indian Overseas Bank requires a minimum business track record of 0 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 : Indian Overseas 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 0 months & 0 months respectively.
  • CIBIL Score : Indian Overseas 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.

Indian Overseas 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. Indian Overseas Bank allows prepayment of loan after paying 1 EMI’s with prepayment charges - Nil prepayment charges
  • Processing Fee : Indian Overseas Bank asks for a processing fee of upto 3% of the loan amount with applicable service tax

Documents Required for IOB Business Loan

To apply for IOB 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

IOB Business Loan Eligibility Calculator

You can calculate your eligibility for Indian Overseas Bank business loan using an online IOB 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 Indian Overseas Bank Business Loan Online at MyLoanCare?

  • In order to get the best offers on a business loan and compare IOB 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  Indian Overseas 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 Indian Overseas Bank?

Indian Overseas Bank is one of the largest Public Sector Bank sector banks in the country that provides lowest business loans starting at 11.00%. The bank also charges a low processing fee starting from upto 3% of the loan amount. Along with that, the bank also offers special business loan schemes such as , & etc.

Has Indian Overseas Bank reduced the business loan interest rate?

Indian Overseas Bankhas reduced the lowest interest on business loan as effective from 23 Jun, 2021. Presently, Indian Overseas Bank offers the business loan starting at 11.00%, which is a decrease of 3.9% from the previous rates of 11.00%. Earlier, Indian Overseas Bank changed its gold loan rate on 31 03, 2021.

What is the interest charged on Indian Overseas Bank business loan?

Indian Overseas Bank offers business loans at attractive rates ranging from 11.00% to 15.00%.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 Indian Overseas Bank?

If you apply for loan from Indian Overseas Bank, your lowest EMI per lakh will be ₹ 2,174.You can calculate your EMI on business loan for different tenures at min business rate starting at 11.00% using MyLoanCare business loan EMI calculator.

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

Indian Overseas Bank offers you business loan for loan amount ranging from ₹ 50,000 to a maximum amount of ₹ 10 Lakh. Loan amount eligibility in IOB further depends upon your income, and repayment capability.

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

Indian Overseas Bank charges a processing fee upto 3% of the loan amount 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 Indian Overseas Bank?

Yes, age is an important eligibility factor to get a business loan as you should be at least 21 years old at loan approval time and 58 years old at loan maturity time.

What are the prepayment charges on business loan from Indian Overseas 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 Indian Overseas Bank is Nil prepayment charges.

What are the business products offered by Indian Overseas Bank?

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

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

Indian Overseas 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.

Indian Overseas Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 1800-425-4445/ 044-2851 9639
Ahmedabad 1800-425-4445/ 044-2851 9639
Ambala 1800-425-4445/ 044-2851 9639
Anand 1800-425-4445/ 044-2851 9639
Aurangabad Bihar 1800-425-4445/ 044-2851 9639

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IOB Business Loan News - Jul 2021
  • 2021-06-15 : Indian Overseas Bank declared a profit of Rs 831 crore
    IOB closed the last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore. The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20. IOB plans to come up with Prompt Corrective Action to focus on loan recovery, low-cost deposits and less capital consuming advances.
  • 2020-11-09 : IOB posts ₹148-crore net profit in Q2
    Indian Overseas Bank reported a net profit of Rs 148 crore for the second quarter. Net profit grew 22.3% from Rs 121 crore in the June quarter of this fiscal. Total income backed by retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans rose 8.1% to Rs 5,431. Interest income increased to Rs 4,363 crore from Rs 4,276 crore a year ago. Further, bank average cost of deposit which include fixed and recurring deposits reduced to 4.89% from 5.41%, while net interest margin improved to 2.18% for the quarter as against 1.86 per cent in the year-ago period.
  • 2020-08-21 : Indian Overseas Bank reported Rs. 120.69 crore net profit in Q1FY21
    Indian Overseas Bank reported a net profit of Rs.120.69 crores for the period ended June 30, 2020, as against a net profit of Rs.143.79 crores for the period ended March 31, 2020. In addition to this, the bank posted a total income of Rs.5233.63 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans. Total deposits which include Fixed and recurring deposits increased to Rs 2.26 lakh crore as on June 30, 2020, as against Rs 2.21 lakh crore by June last year.
  • 2020-02-18 : Indian Overseas Bank plans to pay special attention to MSMEs
    Indian Overseas Bank is planning to increase its MSME loans from current Rs. 30,000 to Rs. 50,000 crores. IOB has already started an Outreach program for MSMEs and is planning to start new initiatives further to boost short term business loans.
  • 2019-10-01 : Indian Overseas Bank offers repo-linked loans from today
    After RBI directed banks to link their lending rates with external benchmarks, Indian Overseas Bank is set to offer loans linked with repo rate. As per the update, the Bank will provide retail and MSME loans at repo rate+2.85% as the spread. Further, the Bank will also offer the benefit of 0.25% to small borrowers by charging Mudra Loans up to Rs 50,000 at 8.25%. This will be in effect from October 1, 2019.
*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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