Business Loans from IDBI Bank
Being one of the public sector banks in India, IDBI Bank offers a wide range of financial products such as business loans, education loans, deposit schemes, etc. to its customers. With the tagline “Bank Aisa, Dost Jaisa” which roughly translates to “a friendly bank”, IDBI Bank offers different business loan schemes to its corporate customers.
Some business loans offered by IDBI Bank are:
- Term Loan
- Short Term Corporate Loan/Bridge Loan
- Working Capital Loan
- Export Finance
- Loan Scheme for Commercial Real Estate
- Loan for NBFCs
We give you a brief introduction to each of these IDBI Bank business loans below.
IDBI Bank Term Loans for Business
IDBI Bank offers term loan schemes to help businesses to meet working capital or capital expenditure needs. This loan can also be availed for expenditure related to business expansion.
Features of IDBI Bank Term Loan
Why this Loan?
- The IDBI Bank Term Loan is meant for you if your business needs funds to meet its capital expenditure or working capital needs
- Borrowers can avail this loan in Indian and foreign currency
IDBI Bank Short Term Loans
The IDBI Bank Short Term Corporate Loan helps businesses to take care of business exigencies or meet basic operational needs including the purchase of equipment, funding for payroll, etc.
Features of IDBI Bank Short Term Loans for Business
Why this Loan?
- This loan can be taken for short-term funding needs for a project or business exigencies
- Borrowers who are existing clients of IDBI Bank and have a good track record of relationships are eligible for this loan
IDBI Bank Business Loan for Working Capital
The IDBI Bank Working Capital Loan helps businesses finance their everyday operations such as for investment in current assets, purchase inventory, salary payments, power charges, etc. Cash Credit facility is granted to customers to bridge the working capital gap.
Features of IDBI Bank Working Capital Business Loan
Why this Loan?
- This business loan can be taken for all current obligations due within a year related to running the business
- The bank asks for hypothecation of stock such as raw materials, in-process goods, finished goods, etc. as security for this loan
IDBI Bank Business Loan for Export Finance
This loan helps businesses pay for pre-shipment, post-shipment, and other activities right from sourcing, manufacturing or converting semi-finished into finished goods and services to importing raw materials and capital goods for export business.
Features of IDBI Bank Export Finance Business Loan
Why this Loan?
- The IDBI Bank Loan for Exporters is meant for you if your business needs funds for any activity directly related to your export business. Please get in touch with the bank to get a list of all activities eligible for this loan
- IDBI Bank extends this loan at pre-shipment as well as post-shipment stage in Indian currency and foreign currency
IDBI Bank Business Loan Scheme for Commercial Real Estate
The IDBI Bank Commercial Real Estate Loan acts as an umbrella loan scheme for different loan products offered by IDBI Bank to borrowers from the commercial real estate sector for setting up various residential and commercial complexes.
Features of IDBI Bank Commercial Real Estate Loan
Why this Loan?
- This umbrella loan scheme is further divided into loan schemes where the bank extends funds for setting up shopping malls, developing residential complexes, building of office complexes and lease rental discounting
- These loans are extended in Indian rupees as term loans
IDBI Bank Business Loans for Non-Banking Finance Companies (NBFCs)
This Loan for NBFCs from IDBI Bank is specifically meant for Non-Banking Finance Companies (NBFC) to raise funds for working capital through working capital loans or other business needs through term loans.
Features of IDBI Bank Business Loan for NBFCs
Why this Loan?
- NBFCs such as Housing Finance Companies (HFCs), Infrastructure Finance Companies (IFCs), and Asset Finance Companies (AFCs) are eligible for this loan provided they comply with RBI norms
- The maximum loan amount, tenure, etc. are decided by the bank on a case-to-case basis
Important Note: IDBI Bank may offer more corporate loan options that 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 IDBI Bank Business Loans
- The interest rate for IDBI Bank Business Loans is defined as the sum of two factors, namely: Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Premium where the Strategic Premium depends on various factors including the type of business, tenure of loan, etc.
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
- IDBI Bank Website: www.idbibank.in and www.inet.idbibank.co.in (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll Free Number: 1800 209 4324, 1800 22 1070