ICICI Bank MSME Loan

ICICI Bank is considered the second largest bank in India in terms of assets and market capitalization. The bank offers a wide range of finance products to different segments of its customer base. So, it is obvious that the bank has various MSME loans to offer its customers. ICICI Bank also offers non funded facilities to help small businesses run business operations or to scale up. In this post, we will discuss the various schemes and the features of the ICICI Bank MSME loan.

Offered MSME Loans by ICICI Bank

Working Capital Loan

This loan acts as financial support to businesses in their everyday operations such as, during periods of reduced business activity or when funds are short to fulfill the business needs. The bank extends this as Cash Credit or Overdraft (OD) facility. The Working Capital Finance offered by ICICI Bank is designed to serve all your working capital needs such as export credit, bank guarantees, overdraft facility, and so on. 

Features

1. This Loan for MSMEs can be taken for all projects and activities necessary to run the business daily. These activities can be an investment in current assets to scale up, purchase of raw materials, power charges emergency expenses, etc.

2. The bank determines the applicable interest rate for this loan after evaluating the borrower’s business profile, past track record, cash flow, loan amount applied for, etc.

3. You can avail Cash Credit limit or Overdraft facility under this facility.

4. The Export Credit facility can be availed to provide pre-shipment and post-shipment finance to exporters.

5. Different types of bank guarantees are provided to meet financial obligations and performance.

6. Non-fund-based facilities as working capital limits such as letters of credit, buyers’ credit facilities can be availed.

Insta OD

ICICI Bank offers this online lending platform which helps an individual to avail of instant loans to utilize as the working capital needs.

Features

  • Quick and easy online loan application process.
  • Super fast loan amount disbursement.
  • Minimal documentation process.
  • Overdraft facility of up to Rs.15 lakh, and Rs.10 lakh for new customers.
  • No requirement of collateral or security.
  • No charges for foreclosure or prepayment of the loan amount.
  • Pay interest only for the amount used.

Term Loan

ICICI Bank offers term loans that can be used for setting up new industrial units, purchasing commercial assets, machinery, commercial vehicles, and expanding existing industrial units. All projects are eligible for this loan as long as they are directly related to the purchase of assets or business expansion.

Features

  • The Term Loan for MSMEs can be availed for all business projects and activities related to expand the future growth of the company.
  • The bank accepts residential/commercial/industrial property/liquid securities as primary security for this loan.
  • Flexibility in loan repayment tenure can be extended to up to 7 years.
  • Avail a loan amount of up to Rs.2 Crores under CGTMSE scheme without providing any collateral.
  • Assessment done on the basis of the future cash flows. 
  • Specially designed composite loans that include both working capital and term loans specialities to meet all financial requirements. 

GST business loan

The ICICI Bank GST Business Loans are specially designed for customers who are looking for a simple overdraft product that does not need any financial documents. 

Features

  • No requirement for financial documents.
  • Easy and simple product.
  • Assessment done on the basis of the GST returns.
  • Overdraft facility can be availed against self-occupied commercial, residential and/or industrial properties. 

Export Credit

This loan helps to pay for pre-shipment, post-shipment, and other activities for export businesses. The bank offers the facility in Indian or foreign currency depending on the needs of the borrower.

Features

  • The repayment period for each loan is set as per case basis depending on factors such as the nature of project, amount of loan, repayment capacity of the borrower etc.

Basic details of ICICI Bank MSME Loan

  • Interest rates – 16.50%.
  • Processing fee – starting at 0.99% upto 2%.
  • Tenure – 12-36 months.
  • EMI – Rs. 3,540 per Lakh(lowest).
  • Loan amount – Rs. 1 Lakh – Rs. 40 Lakh or above (if considered eligible by bank).
  • Foreclosure charges – 5% after completion of 6 EMIs.

Special Note

The official website of the bank has information on several business loan schemes available. But, it is possible to have more corporate loan options offered by the bank which are not announced on the website yet. You should get in touch with the nearest branch and check the loan schemes they offer. It will also help you to get a customized quote as many loan schemes are requirements-based and charges like application charges, service charges are also custom made depending on the particular case basis.

Interest Rates of ICICI Bank MSME Loan

From May 2021 ICICI Bank offers business loans at an interest rate of 16.50%. The lowest interest rate has been raised by 0.01% as it was 16.49% previously. The interest rates for business loans depend on various factors such as the amount of loan, type of business, risk rating, nature of project, repayment period, etc. So, the applicable interest rate for each loan may vary, and getting in touch with a bank representative for details would be nice.

Eligibility

1. Age – The bank offers loans to customers who are at least 25 years old(loan approval) and a maximum of 65 years (at the time of loan maturity).

2. Loan amount – Based on the eligibility, ICICI Bank provides loans ranging from Rs. 1 Lakh to upto Rs. 2 Crores.

3. Profit/Revenue – The borrower’s organization requires profit for a minimum of 2 years with having minimum annual turnover of Rs. 60,00,000.

4. Business stability – The bank asks for business stability for 36 months with growth in sales. The decline in sales or unstable conditions might impact the eligible factors.

5. Income Tax Return(ITR) & Banking – ICICI Bank requires the business details of the borrower like ITR details of the last 24 months and bank statements of the last 6 months.

6. CIBIL score – It is mandatory to maintain a CIBIL score of 750 and above to avail of the loan.

Required documents

1. Loan Application Form duly filled and signed by the applicant and co-applicant(if any).

2. Passport Size Photographs of applicant and co-applicant.

3. Personal ID Proof – Aadhaar Card, PAN Card, Passport, Driving License, PAN Card.

4. Signature Proof – PAN Card, Banker’s Verification, Driving License, or Passport.

5. Residential Address Proof (Any One) – Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement.

6. Income or Banking Proof – Bank account statement of last 6 months, loan statement of running loans, latest closed loan NOC, the net worth of the applicant and co-applicant.

7. Security (as applicable) – Margin money, plant and machinery list with current valuation report, property details, property valuation report.

8. For term loans – Project report with details, infrastructural needs, projected cash, and fund flow statement for the repayment period, and copies of all licenses and permits.

Documents required for Proprietorship or Partnership Firm

1. Loan Application Form duly filled and signed.

2. Partnership Registration Certificate.

3. Office Address Proof – Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement.

4. Income Proof – Project report, GST Returns, last 3 years ITR of applicant and co-applicant, audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A (if applicable).

5. Banking Proof – Company’s major account statement of last 1 year, statement of running loans, latest closed loan NOC, and bank statement of the applicant and co-applicants savings account.

6. Security (as applicable) – Margin money, plant, and machinery list and current valuation report, property Valuation Report.

Documents required for Private Limited or Public Limited Companies

1. Application Form duly filled and signed.

2. Company’s PAN Card.

3. Office Address Proof – Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement.

4. Business Proof – AOA and MOA, company incorporation certificate, business commencement certificate, board resolution, DIN certificate, list of directors on company letterhead, GST number, Form 32 in case of director change.

5. Income Proof – CMA data and project report, last 3 years ITR of company and all directors including annual credit report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS certificate/Form 16A, net worth certificate.

6. Banking Proof – Company’s major bank account statement of last 1 year, running loan statement(if any), NOC of latest cleared loan and bank statement of Applicant and Co-applicant’s Savings Account for last 1 year.

7. Security Margin Money, Plant and Machinery list with Current Valuation Report, Property Photographs Valuation Report.

8. For term loans only – Project report details, projection of production and sales, infrastructural needs, projected cash and fund flow statement for the repayment period, copies of all licenses and permits.

How to apply for ICICI Bank MSME Loan

1. Visit the Udyog Aadhaar website and register your MSME.
2. Enter your Aadhaar number, name and click on ‘Validate and generate OTP’.
3. Enter the OTP and click on ‘Validate’.
4. Enter the required details in the application form and click on ‘Submit.
5. You will now receive an OTP on your mobile number. Enter the OTP and click on ‘Final Submit’.

After validating your details the loan amount will be approved depending on your eligibility and will be disbursed to your account.

Fees & Charges of ICICI Bank MSME Loan

There are some other charges excluding the interest rates.

1. Foreclosure charges – If the borrower wants to repay the entire loan amount before the tenure period ends, these charges are to be paid. The bank allows prepayment only after completion of 6 EMIS and charges 5%.

2. Processing fees – The processing fee starts from 0.99%-2% with applicable service taxes.

Contact details to get ICICI Bank MSME Loan

Headquarters – Mumbai, Maharashtra.
Call – 1860 125 7777(Toll-free).
Website – www.icicibank.com

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