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Bank of India offers 17 different types of business loans, and each of these loans is aligned with a unique goal. Apart from these loans, the bank also offers six government-sponsored schemes to help entrepreneurs realise their dreams.
Here is everything you need to know about Bank of India business loans.
|Loan Types Offered||Star MSME GST Plus Scheme|
Star SME Education Plus
BOI Star Doctors Plus
Star SME Contractor Line of Credit
Star SME Liquid Plus
Star Laghu Udyami Samekit Loan
Pradhan Mantri Credit Scheme
Star Channel Credit
Star MSME E-Rickshaw
Star Weaver MUDRA Scheme
Star Start Up Scheme
Trade Receivables E-Discounting System (TReDS)
Star SME Auto Express
Technology Upgradation Fund Scheme
BOI Star Vyapar
Star Asset Backed Loan (BSABL)
|Loan Amount||Up to Rs.1,000 lakh|
|Loan Tenure||5-7 years|
|Interest Rate||Base Rate ay 9.7% p.a.|
|Star MSME GST Plus Scheme||The scheme provides financing to meet the working capital requirement for traders, services, and manufacturing businesses. The working capital can be fund-based or non-fund based. The loan amount can range from Rs.10 lakh up to Rs.500 lakh with a 25% stock and 40% book debt. It requires stocks and book debts as security and a minimum of 65% collateral.|
|Star SME Education Plus||The purpose of this scheme is to finance the construction, repair, and renovation of buildings and the purchase of furniture, fixtures, and computers for your office. The scheme is dedicated to educational institutions, such as schools, colleges, and universities. The available loan amount is from Rs.10 lakh up to Rs.500 lakh with a margin of 20%.|
|BOI Star Doctors Plus||The scheme is designed for individuals and companies to provide medical, pathological, diagnostic, and other healthcare services where qualified medical practitioners hold a minimum of 51% share. |
Financing can be availed to set up a clinic, nursing home, or a pathology lab, to expand it with new equipment, or to modernise it. A loan of up to Rs.100 lakh can be got at a margin of 15%-25%.
|Star SME Contractor Line of Credit||The scheme targets civil and mining engineers and transport contractors who require working capital in the form of cash credit, non-fund based facility, letter of credit and bank guarantee. The loan amount can range from Rs.10 lakh up to Rs.500 lakh. The margin for this scheme can be 20% for fund based option and 15% cash margin for non-fund based option. Collateral equal to 1.5 times the loan amount must be maintained.|
|Star SME Liquid Plus||Entrepreneurs engaged in business for a minimum of three years having audited financials can benefit from this scheme. The loan amount must be utilised for purchasing machinery, equipment, and preliminary expenses for R&D, advertising, and marketing activities. This term loan provides financing from Rs.10 lakh up to Rs.500 lakh.|
|Star Laghu Udyami Samekit Loan||Micro and small enterprises looking for investment and working capital can avail of a loan under this scheme. For rural firms, the loan amount can be up to Rs.5 lakh, semi-urban firms can get up to Rs.10 lakh, urban firms up to Rs.50 lakh, and firms in metro cities up to Rs.100 lakh at a margin of 15%.|
|Star Channel Credit||Vendors, suppliers, dealers, distributors, and corporate firms can use invoice discounting schemes with a nil margin at competitive interest rates. There is also the option of availing channel financing over and above the working capital finance facility. A maximum of 20% of the estimated annual supplies can be arranged through this scheme.|
|Star MSME E-Rickshaw||Individuals, proprietorship firms, or partnership firms engaged in the transport business having an e-rickshaw permit can benefit from this scheme to purchase a new e-rickshaw and/or for battery replacement. A maximum of Rs.5 lakh can be availed at a margin of 15%-20%.|
|Star Weaver MUDRA Scheme||Weavers can get assistance to meet their credit emergencies, investment needs and working capital. The scheme is available both in rural and urban areas. Comprehensive financing of up to Rs.5 lakh is offered with a 3-5 years repayment tenure.|
|Star Start Up Scheme||The scheme is dedicated to startups to receive financing for innovation, development, deployment, and commercialisation of products/processes/services. It offers term loans, working capital loans, and non-fund based composite loans from Rs.0.10 crore up to Rs.5 crore.|
|Trade Receivables E-Discounting System (TReDS)||Get financing based on trade receivables of MSMEs through a standardised process.|
|Star SME Auto Express||Existing SME units can avail of a loan under this scheme to purchase transport vehicles that will be used to deliver products/services. Only new vehicles are permitted to be purchased. The margin here is 20% of the on-road price of the vehicle.|
|Small Road Transport Operator (SRTO)||This scheme helps individuals and firms to purchase commercial vehicles, earthmoving equipment, and excavators at a minimum margin of 15% on the on-road cost of equipment/vehicle.|
|Technology Upgradation Fund Scheme||The Amended Technology Upgradation Fund Scheme (ATUFS) objective is to promote the ease of doing business, generate employment, and promote exports through the Make in India campaign. The scheme will be active until 31 March 2022 and provide a one-time capital subsidy for investments, especially for the textile and jute industries.|
|BOI Star Vyapar||The service sector and traders can avail financing for working capital requirements under the scheme. The loan amount can be utilised for stock and book debts. Cash credit can be availed up to Rs.1,000 lakhs.|
|Star Asset Backed Loan (BSABL)||MSMEs are looking for loan facilities for manufacturing and services, i.e., purchasing equipment, machinery, furniture, fixtures, vehicles, and others. The loan amount can range from Rs.50 lakh to Rs.1,000 lakh.|
The base rate for business loans is at 9.7% p.a. with effect from 5 October 2015. Tenor Premium will be added to this rate for all term loans exceeding Rs.10 lakh with a repayment period above one year.
The interest rate will be according to the limit proposed and credit rating assigned as per the model given below:
|Limits||Rating Model in Force|
|Rs.1 lakh up to Rs.10 lakh||No Rating|
|Rs.10 lakh up to Rs.5 crore||SBS|
|Rs.5 crore up to Rs.30 crore||MS|
|Rs.30 crore and above||HLC|
Any other documents and proofs as requested by the bank on a case-by-case basis.
|Loan Amount||Charges in Rural and Semi-Urban Branches||Charges on Urban and Metro Branches|
|Up to Rs.1 lakh||Nil||Nil|
|Rs.1 lakh and above||Rs.250 per lakh; Maximum of Rs.12.5 lakh||Rs.300 per lakh; Maximum of Rs.20 lakh|
|Loan Amount||Maximum Documentation Charges|
|Up to Rs.1 lakh||Nil|
|Rs.1 lakh up to Rs.5 lakh||Rs.1,000|
|Rs.5 lakh up to Rs.10 lakh||Rs.2,000|
|Rs.10 lakh up to Rs.25 lakh||Rs.3,000|
|Rs.25 lakh up to Rs.100 lakh||Rs.5,000|
|Rs.100 lakh up to Rs.500 lakh||Rs.10,000|
|Rs.500 lakh up to Rs.1,000 lakh||Rs.20,000|
|Rs.1,000 lakh and above||Rs.30,000|
Under the Star Weaver MUDRA scheme, the government provides an interest subsidy, i.e. the loan is provided at the interest rate of 6% to the handloom sector. The maximum interest rate subsidy will be capped at 7%, and this subsidy will be offered for a maximum of three years from the date of the first disbursement. The interest subsidy will be credited to the borrower’s account every month.
TReDS is an online way of financing trade receivables of MSMEs through multiple financiers. This mechanism enables the discounting of MSME invoices raised against large corporate clients to reduce the working capital needs.
Sellers deliver goods on credit, issue invoices and upload the invoices on TReDS. On the other hand, buyers log into TReDS and agree that the invoices are accepted. Upon accepting, TReDS will send this information to the buyer’s bank as their TReDS account is linked to their bank account.
Sellers have the option to bid as quoted by the financier. The funds are credited to the seller’s account on a T+1 day basis. On the due date, the financier will raise a payment request to the buyer. Non-payment, in this case, will be considered as a default.
You may get a moratorium on specific loan schemes. For example, a moratorium of 3 months is offered on the SRTO scheme during the monsoon.