Looking for MSME Loan to purchase e-rickshaws for business use from Bank of India?

You have landed at the right place. This page contains all the information you will need on Bank of India’s Star MSME e-Rickshaw Loan.

Bank of India Star MSME E-Rickshaw Loan Scheme

This loan helps transport operators in the Micro category buy e-rickshaws for commercial use. The loan can also be used for funding first-time battery replacement after one year. However, this loan is not applicable for subsequent battery replacements and the borrower will have to apply for a new one.

Features of BOI Star MSME E-Rickshaw Loan Scheme

Why this Loan?

  • The Bank of India Star MSME E-Rickshaw Loan Scheme is meant for transport operators in the micro category to acquire funds for purchasing e-rickshaws
  • BOI sanctions this loan for the purchase of maximum of 3 e-rickshaws per borrower
  • The maximum loan amount offered under this loan scheme is up to 80% of the on-road cost of the vehicle or 85% of the invoice cost, whichever is less. If the loan is availed for battery replacement, the bank offers 75% of the battery replacement cost capped at the maximum quantum of finance under the scheme

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to 80% of the on-road cost of the vehicle or 85% of the invoice cost, whichever is less. First-time battery replacement after one year of e-rickshaw purchase is covered under the loan scheme
  • The maximum loan amount offered under this loan scheme for battery replacement offers 75% of the battery replacement cost capped at the maximum quantum of finance under the scheme

Interest

  • The interest rate for this loan scheme is defined as the sum of One-year Marginal Cost of Funds-based Lending Rate (MCLR) of Bank of India + Business Strategy Spread (BSS) + Credit Risk Premium. As of now, one-year MCLR of Bank of India is 7.35%, BSS is 0.25% and Strategic premium can be 0.50% for purchase of first vehicle, 1.00% for purchase of subsequent vehicles and 1.50% for battery replacement bringing the effective interest rate at 9.15%, 9.65% and 10.15% respectively

Repayment & Moratorium

  • For Purchase of e-Rickshaw: The repayment period for this loan is 48 months including the moratorium of 1 month
  • For Battery Replacement: The repayment period for this loan is 18 months including the moratorium of 1 month

Security Needed

  • The bank asks for hypothecation of assets created with bank finance
  • The bank may also for CGTMSE coverage

Eligibility

  • All individuals, transport operators, association, proprietorship firm and partnership firm directly engaged in the transport business
  • The borrowers should have the requisite permission by appropriate authorities to run e-rickshaws for passenger or goods transport

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges minimum 15% of the invoice cost or 20% of the on-road price of the e-rickshaw, whichever is higher

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • This information is not mentioned on the bank’s website. Please talk to a bank representative at the time of applying for this loan

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
  • Self-attested A4 size copies of the aforementioned documents

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
  • Self-attested A4 size copies of the aforementioned documents

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
  • Self-attested A4 size copies of the aforementioned documents

Reference Facts

  • Bank of India Website: www.bankofindia.com and www.bankofindia.co.in
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 220 229, 1800 103 1906