ICICI Bank Business Loan

Following are the key highlights of ICICI business loans:

The ICICI Bank business loan interest rate for each loan is determined by the bank based on the assessment of business, financials, loan amount and tenure. ICICI business loan interest rates are linked to the current Repo Rate, which is 6.50% at present.

ICICI Bank offers the following types of business loans under 3 categories i.e.

1. Secured Business Loans
2. Unsecured Business Loans
3. Government Business Loan Schemes

(A) Secured Business Loans

1. GST Business Loan

• Loan amount available up to Rs. 3 Crores basis your GST returns, collateral offered, and statistical score.
• Overdraft (OD), Letter of Credit (LC), and Bank Guarantee (BG) facilities are available.
• No financial statements are required.
• Instant in-principle eligibility assessment and digital loan processing.
• Dedicated business banking specialist.
• Loan offered against residential/ commercial/ industrial properties and fixed deposits.

2. Term Loans

• Term loans can be obtained to buy commercial assets, set up a new industrial unit or expand/ modernise your existing unit.
• Flexible repayment tenure of up to 7 years.
• Assessment based on future cash flows
• Composite loans including working capital and term loans offered to meet all financial requirements
• Collateral-free term loans up to Rs. 2 Crores are also available under the CGTMSE scheme.

3. Loans without Financials

• These loans are offered to eligible customers in the MSME segment based on their past transaction history without the requirement of audited financials.
• Loans up to Rs. 1 Crore based on transaction history through overdraft and non-fund-based facilities.
• No audited financials are required.
• A minimum vintage of 3 years is required.
• Fast processing with a convenient documentation process.
• Dedicated and exclusive relationship managers.
• Competitive interest rates, commissions and charges.

4. Insta-Secured Overdraft Facility

• It is an online lending platform that caters to your working capital requirements by providing a secured overdraft facility.
• Online processing with instant sanction of overdraft facility.
• Pre-qualified offers with no financial documents.
• Minimal documentation.
• Loan amount between Rs. 15 Lakhs to Rs. 1 Crore
• Loan offered against residential/ commercial property and fixed deposit for an overdraft facility.
• The interest rate for an Insta-Secured Overdraft Facility is 11% to 11.15% p.a.

5. Loans for New Entities

• It is a loan for first-time borrowers or newly started businesses to meet their day-to-day operating expenses.
• Cash Credit/ Overdraft/ Export Credit and non-fund-based facilities are available for manufacturers, traders and service providers that are at least 1 year old.
• Term Loans for the purchase of commercial assets and business expansion needs.
• Residential/ commercial/ industrial property/ and liquid securities are accepted as collateral.
• Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies are eligible.

6. Finance for Importers and Exporters

• This loan is for an exporter/ importer who requires timely finance to meet all their financial needs.
• Export credit for exporters as pre-shipment and post-shipment finance.
• Letters of Credit for facilitating trade,
• Loans are also available in foreign currency (export credit & buyers credit) to reduce forex risk and lower borrowing costs
• Derivative solutions such as forwards and options to hedge your foreign exchange risk.
• Residential/ commercial/ industrial property/ and liquid securities are accepted as collateral.
• Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies are eligible.

7. FD Overdraft

• It is an overdraft against online fixed deposit (FD) for Corporates (Companies, Partnership Firms, Limited Liability Partnerships, and Hindu Undivided Families) via ICICI Bank Corporate Internet Banking in 3 easy steps.
• Limit up to 90% of the FD value.
• Maximum overdraft up to Rs. 10 Crores
• Overdraft against self-FD (up to 7 FDs)
• Attractive Interest rates with zero processing fee & foreclosure charges.
• One-time registration process, basis the Request Letter and authorisation document submitted at the branch for workflow set-up.

8. Working Capital Loans

• Cash Credit limit/Overdraft facility to meet your working capital needs
• Working capital limits to meet your export requirement.
• Export credit for providing pre-shipment and post-shipment finance to exporters.
• Various types of Bank Guarantees to meet performance & financial obligations
• Working capital limits in the form of non-fund-based facilities like Letters of Credit and Buyers Credit to ensure timely delivery of goods.
• Residential/ commercial/ industrial property/ and liquid securities are accepted as collateral.
• Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies are eligible.

(B) Unsecured Business Loans

1. InstaOD Plus

• It is a collateral-free online unsecured Overdraft (OD) facility without any paperwork to serve day-to-day needs as well as sudden exigencies, for business.
• Instant OD limit of up to Rs. 50 Lakhs for existing ICICI Bank Current Account customers and up to Rs. 25 Lakhs for non-ICICI Bank Current Account customers.
• Get instant disbursement of this OD facility by opening a Current Account instantly with Video KYC.
• There is no minimum usage requirement.
• Interest has to be paid only on the amount utilised.
• Zero prepayment and foreclosure charges.
• Paperless processing with instant sanction and disbursement.
• The tenure of the OD facility is for 12 months from the date of setting up the limit and is renewed at the end of the 12 months at the discretion of ICICI Bank.
• A 2% non-refundable renewal processing fee, excluding applicable taxes will be levied.

2. Merchant OD

• It is a pre-approved unsecured OD for registered Merchants of ICICI Bank to fulfil their business needs.
• Pre-approved overdraft limit of up to Rs. 25 Lakhs.
• Pay interest only on the utilised amount.
• Can be availed online within a few minutes without the hassle of paperwork.
• Minimal documentation.
• No collateral required.
• No commitment, prepayment and foreclosure charges.
• Can be availed through Corporate Internet Banking, the InstaBiz mobile app, or ICICI Bank website.
• An interest rate of 16% p.a. and a processing fee of 2% of the loan amount is applicable.

3. Savings Account Overdraft (SAOD)

• InstaOD for Savings Account is an unsecured collateral-free overdraft facility for existing Savings Account customers of ICICI Bank.
• Pre-approved overdraft limit up to Rs. 5 Lakhs.
• Online loan paperless processing with instant limit set up in new Overdraft Account.
• Pay interest only on the amount utilised.
• No commitment, prepayment, and foreclosure charges.
• An interest rate of 17% p.a. and a processing fee of 2% of the loan amount is applicable.
• No documents required.

4. Select OD

• SelectOD offers an instant overdraft facility for a specific purpose, like paying GST/tax payments, etc.
• Pre-approved overdraft up to Rs. 15 Lakhs for existing customers.
• Pay interest only on the utilised amount.
• Paperless processing with instant disbursement.
• Minimal documentation with zero collateral.
• No commitment, prepayment, and foreclosure charges.
• SelectOD can be availed through the Corporate Internet Banking, InstaBIZ app, or ICICI Bank website.
• A processing fee of 1.5% of the OD amount excluding applicable taxes is applicable.
• The tenure of this OD facility is for 12 months from the date of setting up the limit and is renewed at the end of the 12 months at the discretion of ICICI Bank.

(C) Government Business Loan Scheme

1. CGTMSE

• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme is offered to viable small businesses to help them grow.
• Get Cash Credit and Term Loan under the CGTMSE scheme up to Rs. 2 Crores.
• It is a collateral-free facility specially designed under the CGTMSE scheme of SIDBI and the Ministry of Small and Medium Enterprises as defined under the MSMED Act, 2006.

Apart from business loan interest rate ICICI Bank also levies the following fees on its business loans:

• Processing fees: Up to 2% of the facility amount + applicable taxes.
• Stamp duty & other statutory charges: As per applicable laws of the state.
• Commission on Letters of Credit & Bank Guarantee: Up to 2% p.a., on a pro-rata basis based on the tenure and the amount of non-fund based facility to be availed.
• Commitment charges: As per the terms and conditions mentioned in the sanction letter.
• Foreclosure charges: As per the terms and conditions mentioned in the sanction letter. Nil foreclosure charges for Micro and Small enterprises.

Following are the ICICI Bank business loan eligibility criteria for different schemes:

• You must be at least 28 years (self-employed individuals) and 25 years (for doctors) to 65 years old to apply for an ICICI Bank business loan.
• GST Business Loan is offered against residential/ commercial/ industrial properties and fixed deposits.
• Term Loans are offered on future cash flows.
• Loans without Financials are offered to eligible MSME segment customers with a minimum vintage of 3 years required based on their past transaction history without the requirement of audited financials.
• Sole Proprietorship Firms/ Partnership Firms/ Private Limited Companies are eligible for the Insta Secured Overdraft Facility, Finance for Importers and Exporters, and Working Capital Loans. These facilities are offered against residential/ commercial property and fixed deposits.
• Loans for New Entities are available for manufacturers, traders and service providers of Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, and Public Limited Companies that are at least 1 year old.
• FD Overdraft Facility is available against self-FD for Corporates (Companies, Partnership firms, Limited Liability Partnerships and Hindu Undivided Families).
• For InstaOD Plus, Individuals, Proprietors, Partnerships, Private Limited Companies and Public Limited Companies can get instant disbursement by opening a Current Account instantly with Video KYC. This loan requires a business vintage of 2 years and a credit score of above 725.
• Merchant OD can be availed of by registered Merchants of ICICI Bank.
• SAOD can be availed of by existing Savings Account customers of ICICI Bank.
• Select OD if offered to eligible ICICI Bank customers who are individuals and proprietors, Private Limited Companies, Public Limited Companies, Partnerships and Limited Liability Partnerships.

You will be required to submit the following documents depending on the type of scheme opted for:

1. GST Business Loan:

• Auto-fetch/ upload of GST returns of the last 12 months, latest bank statements, and ITR acknowledgement.
• KYC of the business entity, promoters, guarantors and security providers.
• Property documents

2. Term Loans

• Duly filled in loan application form
• Self-attested copy of:
  • Entity proof: Partnership deed/ Certificate of Incorporation/ Shops & Establishment Certificate
  • Copy of PAN Card of Entity, Proprietors/ Partners/ Directors, Security Providers and Guarantors
  • Proof of address of Entity, Proprietors/ Partners/ Directors, Security Providers and Guarantors

• Last 3 years Audited/ Provisional Financials including Balance Sheet, Profit & Loss Account, VAT returns, etc.
• Current year’s performance and projected turnover on the letterhead of the entity.
• Last 1 year’s ITR of the borrowing entity along with Computation of Income & copy of acknowledgement).
• Bank Statements (not more than 45 days old).

3. InstaOD Plus

• Account Statement/ GST Returns 1 year
• Other documents may be required for institutions such as Partnerships and Companies, such as Memorandum of Association and Board Resolution.
• For new-to-bank customers, a bank statement would be required to assess the banking transactions.

4. Select OD

• Application form and debit mandate have to be submitted after e-sign.

*The above list of documents is only indicative and is not an exhaustive list. Additional documents might be required on a case-to-case basis.

You can apply for an ICICI business loan online or by visiting the nearest ICICI Bank branch. On approval, the loan amount will be directly credited to your bank account. This ensures maximum security and instant accessibility to funds.