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Indian Bank (Allahabad Bank) Business Loans

Updated on:  

08 min read

Indian Bank has taken over Allahabad Bank recently, and all the customers of the latter bank are now among the customer base of the former bank. The bank offers several MSME loans and corporate loans for the benefit of its customers. The purpose of these loans is to meet the customers’ working capital needs and extend their business with new equipment, workspace, and fixed assets. The eligibility criteria are wide to accommodate as many applicants as possible.

Learn more about the business loans offered by the Indian Bank here.

Loan Types OfferedIB Tradewell
IND SME Secure
IB Micro
IND-SME e-Vaahan
IB Contractors
IB My Own Shop
IND SME Mortgage
IB Doctor Plus
IND MSME Vehicle
IB Standby WC Facility (WCDL) for MSMEs
IND-SME Ease
IND-Surya Shakti
Restructuring of MSME Exposure
Loan AmountRs.1 lakh up to Rs.10 crore (No limit on specific schemes)
Loan TenureUp to 120 months
Interest RateBased on the repo rate

Types of Indian Bank Business Loans

IB TradewellThis scheme targets traders and helps them meet working capital requirements and acquire fixed assets. This term loan can range from Rs.0.10 crore up to Rs.5 crore.
IND SME SecureMSMEs in the manufacturing and services sector can avail of a working capital loan, term loan, or non-fund based facilities under this scheme. The minimum loan amount here is Rs.10 lakh with no maximum limit.
IB MicroThis is a composite loan scheme with a minimum loan amount of Rs.20 lakh and 60 EMIs for repayment.
IND-SME e-VaahanFinancing for the purchase of 2/3/4 wheeler electric vehicles by MSMEs for business purposes. You can purchase more than one vehicle under this scheme.
IB ContractorsContractors and subcontractors at all levels can avail of loans under the scheme. The minimum loan amount is Rs.10 lakh per borrower.
IB My Own ShopThis scheme helps individuals and firms to acquire new commercial space/shops. The maximum repayment period for this scheme is 120 months.
IND SME MortgageExisting and new MSME units can avail of financing under this scheme for genuine business needs. New customers can get financing up to Rs.10 lakh, and existing customers can get more than Rs.10 lakh, including the existing limit.
IB Doctor PlusFor purchase or construction of hospitals, clinics, and diagnostic centres in India. The applicant or the spouse must be a qualified medical practitioner to avail of this loan.
IND MSME VehicleGet financing of up to Rs.2 crore to purchase a new vehicle (LMV/HMV) for existing MSME units to transport humans and material.
IB Standby WC Facility (WCDL) for MSMEsYou can avail of a loan under this scheme to solve cash crunch, working capital needs, pending receivables, and delay in receipt of GST input tax credits.
IND-SME EaseThis scheme allows the applicant to take a call on making a part of the loan amount or the entire loan amount into a composite loan. On the other hand, the loan will, by default, be open cash credit to MSMEs.
IND-Surya ShaktiThe bank encourages MSMEs and other businesses to set up solar power plants for captive consumption through this scheme. This is a term loan and has no ceiling amount. The loan tenure can go up to 15 years.

Interest Rate

The bank offers SME loans based on the repo rate. Currently, the repo rate is at 4.40%. Given below are the loan rates for fresh sanctions and renewals of MSME loans, effective from 1 April 2021.

General MSME Loans (Rs.50 lakh up to Rs.5 crore)

Combined Internal Rating GradeEffective Interest Rate (% p.a.)
AAA9.45
AA+9.70
AA10.10
A10.65
BBB11.20
BB and below and unrated accounts13.90

General MSME Loans (Rs.5 crore and above)

Combined Internal Rating GradeEffective Interest Rate (% p.a.)
AAA8.75
AA+8.90
AA9.20
A10.45
BBB10.95
BB and below and unrated accounts13.60

Features and Benefits

  • Get tailor-made loans for your business with suitable terms and conditions.
  • SME loans are offered at attractive interest rates.
  • The repayment tenure can go up to 120 months. 
  • A moratorium facility is provided subject to certain conditions.
  • Businesses and enterprises from different backgrounds are eligible to avail of loans.
  • Financing is provided to purchase 2/3/4-wheeler vehicles for transporting people and goods.
  • Term loans and composite loans are offered to suit the needs of borrowers.
  • The application form for these business loans is available on the official website of the bank.
  • Repayments can be made in equated monthly instalments (EMIs).
  • The margin for these loans can be from 10% to 25%, subject to certain conditions.
  • The security/collateral required may vary based on the type of loan scheme and other factors.

Eligibility Criteria

IB TradewellTraders

Minimum one-year experience

Good standing in the market

Minimum loan amount: Rs.0.10 crore

Maximum loan amount: Rs.5 crore
IND SME SecureMicro, Small & Medium Enterprises (MSMEs)

Manufacturing and services sector

Minimum loan amount: Rs.10 lakh

Maximum loan amount: No limit
IB MicroFresh and existing micro-units from the manufacturing and services sector on priority

Satisfactory promoters’ track record

Satisfactory experience of the promoter in the field

Viable project

Maximum loan amount: Rs.20 lakh
IND-SME e-VaahanIndividuals

Proprietorship concern

Partnership Firm

Private Limited Company

Public Limited Company

Limited Liability Partnership Firm

Trust
IB ContractorsIndividuals
Proprietors
Registered Partnerships
Limited Liability Partnerships (LLP)
Private and Public Limited Companies under Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India
Well established contractors (civil, mechanical, electrical etc.), performing contracts for Central/State Govt./reputed PSUs/reputed corporates

Contractors/sub-contractors should be in the line of business for a minimum of three years and must have earned a continuous profit for the last two years

Sub-contractors are eligible for finance

GST registration of the borrower is mandatory, wherever applicable

Applicant Should have a license certificate under MSME Act, 2006
IB My Own ShopAll Micro, Small & Medium Enterprises (MSME)

Individuals, Professionals and Self-employed people, firms (registered partnership firms, companies) and businessmen

The applicant should have been in the activity for a minimum period of three years

Applicant should not be more than 50 years of age at the time of availing of the facility

Maximum loan amount: Rs.10 crore (based on the constitution)
IND SME MortgageAll Micro, Small & Medium Enterprise (MSME) both manufacturing and service as per extant definition of Government of India

Existing and New Units – Proprietorship concerns/Partnership Firms/Private Limited Companies/Public Limited Company/Limited Liability Partnership Firm (LLP)

Minimum loan amount:
Rs.10 lakh for new customers
Rs.1 lakh for existing customers such that the total of existing limit and proposed limit > Rs.10 lakh

Maximum loan amount: Rs.5 crore
IB Doctor PlusIndividuals
Registered partnership firms
Limited Company
Trust

Micro, Small & Medium Enterprises (MSME) from the services sector

Key applicant or their spouse should be qualified medical practitioners with a satisfactory track record

The student must have completed the course in MBBS/BDS/BAMS/BUMS from a recognised/approved college and planning to set up their diagnostic centre/clinics in India

Minimum loan amount: Rs.1 lakh

Maximum loan amount: No limit
IND MSME VehicleAll Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India

Satisfactory promoter/s’ track record, group affiliation and viable project/s, with or without credit facilities

Satisfactorily operated account at least for the last one year

Applicant should have Road Permit issued by Competent Authority

Maximum loan amount: Rs.2 crore
IB Standby WC Facility (WCDL) for MSMEsExisting MSME borrowers under the working capital facility (FB + NFB) with the bank

Maximum loan amount: 25% of FBWC + NFBWC with a maximum of Rs.1.25 crore
IND-SME EaseAll Micro, Small & Medium Enterprises (MSME) as per extant definition of Government of India

Minimum loan amount: Rs.10 lakh

Maximum loan amount: Rs.50 lakh
IND-Surya ShaktiAll MSMEs, mid corporates and large corporates

No limit on the loan amount

Fees and Charges

Processing Charge0.59% of the loan amount up to Rs.5,900 (for IND-SME e-Vaahan scheme)
Up to Rs.5,000 for LMVs and Rs.10,000 for HMVs

May vary based on the loan scheme opted
Service charge to obtain Credit Information Report (CIR) from CIBILRs.34
Service charge to obtain Credit Information Report (CIR) from EXPERIANRs.32

Processing Charge Based on Working Capital/Term Loan (Effective from 1 June 2021)

Working Capital LoanUp to Rs.25,000: nil

Rs.25,000 > Rs.50 lakh: Rs.267 per lakh or part thereof;
Minimum: Rs.267

Above Rs.50 lakh: Rs.356 per lakh or part thereof;
Maximum: Rs.89 lakh
Term Loan1% upfront fee subject to a maximum of Rs.1 crore

Frequently Asked Questions

Can I request a loan moratorium?

You can avail of a loan moratorium period of up to 6 months subject to certain conditions under specific schemes. Contact the bank branch for more details.

Should I provide security/collateral to receive financing for the purchase of electric vehicles?

To avail loan facility under IND-SME e-Vaahan scheme, the vehicle you purchase will be the primary security. As collateral security, you may have to submit the Micro & Small Enterprises CGTMSE coverage or 100% collateral security in the form of immovable properties/liquid securities for the loan portion beyond CGTMSE coverage.

In the case of medium-sized enterprises, no collateral security for loans up to Rs.25 lakh. For loans exceeding Rs.25 lakh, 100% collateral security should be provided in immovable properties/liquid securities for the loan portion above Rs. 25.00 lakhs.

Also, the firm’s guarantee of partners/directors must be provided as per the extant guidelines.

What is the margin for the loan under the IB Contractors scheme?

The margin for a loan under the IB Contractors scheme is given below.

  • EM property for Secured OD: 50%
  • Stock and Book Debts: 20%
  • Term loan for Equipment: 20%
  • Bill Finance: 15%
  • Guarantees/LC: 10%
Can I apply for a moratorium if I get open cash credit?

When you receive financing in the form of open cash credit, the composite loan part of the financing will have a repayment tenure of 120 months and no moratorium is offered.

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