Business Loans from Bank of India
Being one of the largest commercial banks in India, Bank of India (BOI) offers a range of loans to different segments of its customer base. Bank of India offers four loan options to its corporate customers. The schemes are designed to help business owners in the corporate sector set up business units, purchase equipment, conduct business activities, etc.
The business loans offered by Bank of India can be classified under:
- Term Loan for Businesses
- Business Loans for Working Capital
- Business Loans for Export Finance
- Bullion Loan Scheme for Exporters
We give you a brief introduction to the business loans below.
Bank of India Term Loans for Businesses
Bank of India offers term loans for businesses under two schemes: Foreign Currency Swing Limit and Dual Currency Swing Limit. These term loans are designed to help businesses carry out different business and trading activities right from acquiring land and building to purchasing machinery and vehicles. All projects are eligible for these loans as long as they are technically feasible and economically viable.
Features of Bank of India Term Loans for Businesses
Why this Loan?
- These loans can be taken for all manufacturing, processing, repairing, business and trading projects and activities
- The loan is extended in different forms based on the borrower requirements such as foreign currency loans, dual currency loans, etc.
- The tenure for these loans is 1 year and the loan can be renewed, if required
- The minimum loan amount for this loan is USD 1,00,000 or its equivalent in INR
- If the loan is availed in foreign currency, the interest rate is linked to London Interbank Offered Rate (LIBOR). If the loan is availed in Indian currency, the interest rate is linked to Bank of India’s Benchmark Prime Lending Rate (BPLR)
Bank of India Business Loan for Working Capital
Bank of India offers Working Capital Loans under two schemes mentioned under term loans: Foreign Currency Swing Limit and Dual Currency Swing Limit. The BOI Working Capital loans help businesses finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. These loans are perfect for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects.
Features of Bank of India Working Capital Business Loan
Why this Loan?
- This business loan can be taken for all projects and activities related to running the business on a day-to-day basis
- The loan is extended in different forms based on the borrower requirements such as foreign currency loans, dual currency loans, etc.
- The tenure for these loans is 1 year and the loan can be renewed, if required
- The minimum loan amount for this loan is USD 1,00,000 or its equivalent in INR
- If the loan is availed in foreign currency, the interest rate is linked to London Interbank Offered Rate (LIBOR). If the loan is availed in Indian currency, the interest rate is linked to Bank of India’s Benchmark Prime Lending Rate (BPLR)
Bank of India Business Loan for Export Finance
This loan helps businesses pay for pre-shipment and post-shipment activities. The bank also offers non-funded assistance to help businesses dealing in export run their operations smoothly. Depending on the needs of the borrower, the bank offers Packing Credit in Indian Rupees or foreign currency.
Features of Bank of India Export Finance Business Loan
Why this Loan?
- The Bank of India Export Finance Loan is meant for you if your business needs funds for any activity directly related to your export business whether it is pre-shipment or post-shipment. Please get in touch with the bank to get a list of all activities eligible for this loan
- The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Bank of India Bullion Loan Scheme for Exporters
Bank of India offers this loan scheme to help jewellery manufacturers procure gold on loan at competitive rates and then manufacture and export it. This loan scheme is different from the Exporters Gold Card offered by Bank of India.
Features of Bank of India Bullion Loan Scheme for Exporters
Why this Loan?
- This loan is designed for Jewellery Manufacturers who export gold jewellery. Manufacturers catering to the domestic market are not eligible for this loan
- The Jewellery manufacturers settle the loan with the sale proceeds obtained from the export
- This BOI Bullion Loan Scheme is subject to rules and regulations prescribed by Reserve Bank of India (RBI)
Important Note: Even though the bank’s website has information available for few business loan schemes at this time, there is a possibility that the bank may offer more corporate loan options which are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, Strategic Premium, etc. may be decided on a case-to-case basis.
Interest Rate for Bank of India Business Loans
- For loans availed in the Indian currency the interest rate is linked to Bank of India’s Benchmark Prime Lending Rate (BPLR)
- For loans availed in foreign currency, the interest rate is linked to London Interbank Offered Rate (LIBOR)
Note: Please get in touch with the bank representatives to know the interest rate applicable on any particular loan scheme.
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, 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, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Reference Facts
- Bank of India Website: www.bankofindia.com and www.bankofindia.co.in
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800220 229, 1800 103 1906