MSME Loans from Indian Bank
Indian Bank is one of the state-owned Indian banks offering a range of finance products to different segments of its customer base. The bank offers retail and corporate financial products to its customers. The loans offered by the bank are aimed at providing financial support to businesses that need funds for working capital, capital expenditure, business expansion and other needs. As of now, Indian Bank offers eight MSME loans to help small businesses meet their financial needs easily.
The MSME loans from Indian Bank are:
- IB My Own Shop
- IB Doctor Plus
- IB Contractors
- IND SME Secure
- IND MSME Vehicle
- IB Micro
- IND SME Mortgage
- IND SME E-Vaahan
We give you a brief intro to each below. In addition you have the option to click further and read in detail about most of the loans on a specific page of their own. This specific page has been made specifically for you to get all the information you need on that loan in an uncluttered and easy-to-read format. In case information is less or not available, we have been not been able to create an information page as yet, but we may do so in the course of the next few months.
Indian Bank IB My Own Shop
This loan helps businesses in the Small and Micro Enterprises (SME) sector meet their capital expenditure requirements. Proprietorships, partnerships and limited companies that fit the SME definition are eligible for this loan.
Features of IB My Own Shop
Why this Loan?
- This Indian Bank IB My Own Shop is meant for all types of businesses in the SME sector that need financial assistance to meet their needs for purchasing office space, setting up a unit, expansion of unit, etc.
- This is a secured loan
Indian Bank Doctor’s Plus Loan Scheme
This loan helps doctors and medical practitioners meet their capital expenditures for activities right from setting up a clinic, nursing home, hospital, pathology labs, etc. to purchase of equipment, ambulance, etc. This is a need-based loan.
Features of Doctor’s Plus Loan Scheme
Why this Loan?
- The Indian Bank Doctor’s Plus loan is meant for doctors and medical practitioners who need financial assistance in fulfilling their capital or working capital needs
- Qualified Medical practitioners from different branches of medicine such as Allopathy, Homeopathy, Unani, Ayurveda, etc. are eligible for this loan if they have experience in running the business. Individuals, Proprietors, LLPs, Trusts and Companies can also avail this loan
Indian Bank IB Contractors Scheme
This loan helps MSME contractors and sub-contractors meet their fund-based and non-fund based working capital and capital expenditure requirements. Indian Bank offers this loan scheme as a working capital loan, term loan, Letter of Credit, Bank Guarantee, etc. The maximum loan amount is Rs. 5 crore for this loan.
Features of IB Contractors Loan Scheme
Why this Loan?
- The Indian Bank IB Contractors loan is meant for contractors and sub-contractors to meet their working capital and capital expenditure needs
- Contractors and sub-contractors who are classified as MSME and work on Civil, Mining and Construction projects are eligible for this loan if they are performing contracts for the central government, state government, reputed Public Sector Units (PSUs), reputed Corporate entities, etc.
Indian Bank IND SME Secure Loan
This loan helps businesses in the Small and Micro Enterprises (SME) sector meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies in the manufacturing and services sector that fit SME definition are eligible for this loan.
Features of IND SME Secure Loan
Why this Loan?
- This Indian Bank IND SME Secure Loan is meant for small businesses in the SME sector who need financial assistance to meet their working capital and capital expenditure needs
- This is a need-based loan
Indian Bank MSME Vehicle Loan
This loan helps MSME units in the transportation sector buy new vehicles for business use. The maximum loan amount is Rs. 2 crore or up to 85% of the On-Road cost of the vehicle, whichever is lower.
Features of Indian Bank MSME Vehicle Loan
Why this Loan?
- The Indian Bank MSME Vehicle Loan is meant for small businesses in the Transportation sector purchase vehicles such as Light Motor Vehicles (LMVs)/Heavy Motor vehicles (HMVs), cars, tempos, mini-vans, trucks for business use
- This loan cannot be availed to purchase pre-owned vehicles
Indian Bank IB Micro Loan
This is an umbrella loan scheme for small businesses in the manufacturing and services sectors that fit in the Micro Unit definition. It is perfect for small businesses to meet their working capital and capital expenditure needs. Indian Bank offers a composite loan to small units to help them meet their working capital and capital expenditure under this scheme.
Features of IB Micro Loan
Why this Loan?
- The Indian Bank IB Micro Loan is perfect for MSME businesses in the manufacturing, services and trading sector to meet their working capital, capital expenditure and other needs directly related to the business
- The bank extends this loan as working capital loan, term loan or composite loan based on the needs of the borrower
Indian Bank Mortgage Loan for MSMEs
This loan helps business owners raise capital towards expanding their business by availing a loan against property. The maximum loan amount sanctioned under this loan is Rs. 5 crore.
Features of Indian Bank Mortgage Loan (Loan Against Commercial and Residential Properties for MSMEs)
Why this Loan?
- The Indian Bank MSME Mortgage Loan is perfect for businesses in the Micro, Small and Medium Enterprise sector to get access to funds for business growth and expansion-related activities
- The loan is extended as a term loan and must be repaid within 10 years
Indian Bank MSME e-Vaahan Loan
This loan helps MSME units in the transportation sector buy new electric vehicles for business use. The bank sanctions up to 85% of the on-road cost of the vehicle. The loan can also be availed for the purchase of multiple vehicles in one go subject to terms since the total loan amount sanctioned by the bank depends on the repayment capacity of the borrower.
Features of Indian Bank e-Vaahan Loan
Why this Loan?
- The Indian Bank e-Vaahan Loan is meant for businesses in the MSME segment to help them purchase two, three or four-wheeler electric vehicles for business use
- This loan cannot be availed to purchase pre-owned vehicles
Important Note: Indian Bank may offer more 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, credit risk premium, etc. may be decided on a case-to-case basis.
Interest Rate for Indian Bank MSME Loans
- The interest rate for Indian Bank MSME Loans is defined as the sum of two factors, namely: Marginal Cost of Funds-based Lending Rate (MCLR) and Credit Risk Premium where the Credit Risk Premium depends on the internal risk rating of the borrower. As of now, the one-year MCLR of Indian Bank is 7.30%. The Credit Risk Premium may vary from 0.60% to 6.45% depending on the credit risk rating of the borrower
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
- 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
- All 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
- All A4 size copies of the aforementioned documents
Reference Facts
- Indian Bank Website: www.indianbank.com
- Headquarters: Chennai, Tamil Nadu
- Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422