BOI Business Loan – Low Interest, Quick Disbursal

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Key Features of BOI Business Loans

Diverse Loan Schemes:
Star Start-up Scheme: Funding for DPIIT-recognized startups for innovation, development, or commercialization.
Star MSME E-Rickshaw Finance: Loans for transport operators to purchase new e-rickshaws or replace batteries.
Star SME Auto Express: Financing for SMEs to purchase new vehicles.
BOI Star Doctor Plus: For qualified healthcare professionals or firms with majority shareholding by practitioners.
Star SME Contractor Credit Line: Working capital support for contractors with minimum 3 years experience.
PSB Loans in 59 Minutes: Online platform for quick MSME/SME loan approvals (₹1 lakh to ₹5 crore).
Loan Amount: Ranges from ₹1 lakh to ₹15 crore, depending on scheme and business requirements.
PSB Loans in 59 Minutes offer up to ₹5 crore, while Star Start-up Scheme may cover up to ₹10 crore under CGSS.
Micro business loans under PMMY offer up to ₹10 lakh.
Interest Rates: Competitive rates starting at 9.70% p.a. (subject to change).
Rates vary based on loan amount, credit rating, and scheme:
- PMMY loans for weavers may have subsidized rate of 6% with government support.
- PSB Loans in 59 Minutes offer attractive rates linked to MCLR (8.15% as of Dec 2022).
- Concessions may apply for high credit ratings or CGTMSE coverage.

- Repayment Tenure: Flexible repayment periods up to 7 years for most schemes, extending to 15 years for high-value loans.
  Startup loans offer maximum door-to-door repayment of 120 months including moratorium up to 24 months.
  PMMY loans have maximum tenure of 36 months for demand loans and 84 months for term loans.
- Security/Collateral:
  Collateral-free options: Available for PMMY loans up to ₹10 lakh, Enterprise Development Loans up to ₹3 lakh, and loans under CGTMSE/CGSS.
  Secured loans: May require hypothecation of assets or collateral like residential property (up to 60% LTV ratio).
  Personal guarantees: From promoters/directors may be required for some schemes.
- Eligibility:
  Minimum age: 21 years at application, maximum 65 years (varies by scheme).
  Business continuity: 2-3 years of profitable operations for most schemes (relaxed for startups).
  Eligible entities: Individuals, proprietorships, partnerships, private limited companies, LLPs, trusts.
  CIBIL score: Preferably above 750 for better rates and approval chances.
- Documentation: Standard documents include identity/address proofs, business registration (GST, Udyam), financial statements, and ITR for 2-3 years.
  Scheme-specific documents may be required (e.g., DPIIT certificate for startups, medical qualifications for Doctor Plus).
- Processing and Fees: Quick processing with PSB Loans in 59 Minutes offering approval within an hour.
  Processing fees up to 2% of loan amount (minimum ₹1,000, maximum ₹10,000 for some loans). Minimal charges for government-backed schemes like PMMY.
- Additional Features:
  Online Application: Available through BOI website or PSB Loans in 59 Minutes portal.
  Government-Backed Support: Subsidies under PMMY, Stand Up India, and other schemes.
  Sector-Specific Solutions: Tailored for healthcare, education, transport, and startups.
  TReDS Platform: Helps MSMEs discount invoices for improved liquidity.
- Accessibility: Available across BOI's extensive branch network and online platforms. Multiple repayment options including auto-debit, ECS, or post-dated cheques.

Benefits of BOI Business Loans

Access to Flexible Funding: Loans ranging from ₹1 lakh to ₹15 crore cater to diverse needs like working capital, expansion, or equipment purchase.
Schemes like PSB Loans in 59 Minutes (up to ₹5 crore) and PMMY (up to ₹10 lakh) ensure funding for all business sizes.
Competitive Interest Rates: Rates start at 9.70% p.a. with concessions for high credit ratings or government-backed schemes.
Subsidized rates (e.g., 6% for weavers under Star Weaver MUDRA) reduce borrowing costs.
Quick and Hassle-Free Approval: With schemes like PSB Loans in 59 Minutes, you can get loan approval in less than an hour, making it ideal for businesses needing fast capital.
Online application process and minimal documentation make it easier to access loans.

- Collateral-Free Options: Loans under PMMY, Star Start-up Scheme, and Enterprise Development Loans require no collateral. Coverage under CGTMSE or CGSS eliminates security needs for loans up to ₹10 crore.
- Quick and Hassle-Free Processing: PSB Loans in 59 Minutes offers approval within an hour via online platform. Minimal paperwork for schemes like PMMY with streamlined online applications.
- Support for Diverse Business Needs: Funds can be used for working capital, purchasing vehicles/equipment, or innovation. Specialized solutions for sectors like healthcare, education, and transport.
- Government-Backed Subsidies: Access to schemes like PMMY, Stand Up India provides subsidized rates and relaxed terms. Government guarantees reduce lender risk, improving accessibility.
- Business Growth Support: Enables expansion, modernization, or market entry without depleting cash reserves. TReDS platform helps MSMEs improve liquidity through invoice discounting.
- Enhanced Financial Flexibility: Provides immediate liquidity for opportunities or cash flow challenges. Low processing fees and minimal charges for select schemes reduce borrowing costs.

How to Apply for BOI Business Loans

1. Choose the Right Loan Scheme
2. Check Eligibility
- Ensure you meet the basic eligibility requirements:
- Age: 21 to 65 years (varies by scheme).
- Business continuity: 2-3 years with profitability (for most schemes).
- CIBIL score: Preferably >750.
- Eligible entities: Individuals, MSMEs, startups, proprietorships, partnerships, companies.
- Specific requirements (e.g., medical qualifications for Doctor Plus, e-rickshaw permit for E-Rickshaw Finance).
3. Gather Required Documents
- Prepare the following documents (may vary by scheme):
- Identity Proof: Aadhaar, PAN, passport, voter ID, or driving license.
- Address Proof: Aadhaar, utility bills, or rent agreement.
- Business Proof: GST registration, Udyam certificate, partnership deed, incorporation certificate.
- Financial Documents: ITR, balance sheet, profit & loss statement for last 2-3 years.
- Bank Statements: Last 6-12 months.
4. Choose Application Method
- Online Application (via BOI website or PSB portal):
- Visit BOI's official website or the PSB Loans in 59 Minutes portal.
- Navigate to the "Loans" or "Business/MSME Loans" section and select desired scheme.
- Click "Apply Online" and fill out the application form with personal, business, and loan details.
- Upload scanned copies of required documents.
- Submit the application. For PSB Loans, approval may come within 59 minutes.
- Offline Application:
- Visit the nearest BOI branch.
- Meet a loan officer, discuss requirements, and submit physical application form with documents.
5. Loan Processing and Verification
- After submission, BOI will verify your application and documents.
- The bank may conduct credit appraisal, business viability check, and collateral valuation (if applicable).
6. Loan Approval and Sanction
- Upon successful verification, BOI will issue a sanction letter detailing loan amount, interest rate, repayment tenure, and terms.
- Review and accept the terms by signing the agreement.
7. Loan Disbursement
- After signing the loan agreement and completing formalities, the loan amount is disbursed to your BOI account.
- Disbursal typically takes few days (instant for PSB Loans in 59 Minutes if eligible).
8. Repayment Setup
- Set up EMI payments via auto-debit, ECS, or post-dated cheques for hassle-free repayment.
- Monitor repayments through BOI's net banking, mobile app, or branch visits.
9. Post-Disbursement Support
- BOI offers post-loan support including servicing and query resolution.
- Maintain contact with your relationship manager or branch officer for any concerns.
- Utilize customer care, net banking, or mobile app for service requests.
10. Renewal and Top-up Options
- Based on repayment history and business performance, you may be eligible for loan renewal or top-up.

Eligibility Criteria for BOI Business Loans

Applicant Type:
- Individuals, proprietorships, partnership firms, private limited companies, LLPs, or trusts.
- Startups recognized by DPIIT for Star Start-up Scheme.
- MSMEs registered under Udyam for most schemes.
- Specific groups (e.g., doctors for Star Doctor Plus, transport operators for E-Rickshaw Finance).
Age:
- Minimum: 21 years at application.
- Maximum: 65 years at maturity (varies by scheme).
Business Continuity:
- Minimum 2-3 years of profitable operations for most schemes.
- New businesses or startups may qualify under specific schemes with relaxed requirements.
Credit Score:
- CIBIL score preferably above 750 for better approval chances and rates.
- Entry-level credit rating (e.g., SBS 5 or above) required for some contractor loans.
Income/Revenue:
- Stable income or business revenue demonstrated through ITR, balance sheets, or GST returns.
- Positive net worth and consistent revenue growth preferred.
- For some schemes, a minimum turnover or profitability is required (e.g., ₹10 lakh turnover for PSB Loans in 59 Minutes).
Nationality and Residency:
- Indian citizens or entities registered in India.
- Address proof required to confirm residency.
Collateral/Security:
- Collateral-free options available under PMMY, CGTMSE, or CGSS.
- Secured loans may require property, inventory, or machinery as collateral.
- Personal guarantees from promoters/directors may be mandatory.
- In some cases, a pledge of shares or assets may be required for loans above a certain threshold.
Scheme-Specific Eligibility Criteria
- Star Start-up Scheme:
  - For DPIIT-recognized startups with turnover not exceeding ₹25 crore.
  - Innovation-focused businesses developing new products/services.
  - May require detailed business plan and proof of concept.
  - Business must have a clear growth trajectory and scalability potential.
- PSB Loans in 59 Minutes:
  - For MSMEs with valid GST registration and 3 years of operations.
  - Minimum turnover based on GST returns.
  - CIBIL score preferably >700.
  - Quick approval for businesses with a solid financial track record.
- Pradhan Mantri Mudra Yojana (PMMY):
  - For micro-businesses in manufacturing, trading, or services.
  - No strict minimum business experience required.
  - Three categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5,00,001 to ₹10 lakh).
  - For micro-businesses with potential to scale and contribute to employment generation.
- BOI Star Doctor Plus:
  - For qualified healthcare professionals (MBBS, BDS, BAMS, BHMS) aged 25-60.
  - Minimum 2 years of practice experience.
  - For firms, majority shareholding must be with qualified professionals.
  - Support for setting up clinics, hospitals, or medical practices.
- Star MSME E-Rickshaw Finance:
  - For MSMEs involved in the e-rickshaw business or related services.
  - Must have a valid e-rickshaw permit or approval from relevant authorities.
  - Loan provided for the purchase of e-rickshaws and related equipment.

Documents Required for BOI Business Loans

Loan Application Form:
- Duly filled and signed BOI business loan application form (available online at www.bankofindia.co.in or at branches)
- Two passport-sized photographs of the applicant
Identity Proof (any one):
- Aadhaar card, PAN card, Voter ID
- Passport, Driving license
Address Proof (any one):
- Aadhaar card, Property tax receipt, Utility bill
- Passport, Rent/lease agreement
Business Proof:
- GST registration certificate
- Udyam registration certificate (for MSMEs)
- Shop and establishment license
- Certificate of incorporation (for companies) or partnership deed
- Memorandum and Articles of Association (for private limited companies)
- DPIIT registration certificate (for startups)
Financial Documents:
- Income Tax Returns (ITR) for last 2-3 years (self and business)
- Balance sheet and profit/loss statement for last 2-3 years, certified by CA
- Bank statements for last 6-12 months (business account)
- GST returns (for businesses registered under GST)
- Projected financials or business plan (for larger loans or startups)
Scheme-Specific Documents:
Star Start-up Scheme: DPIIT recognition certificate, detailed business plan.
PSB Loans in 59 Minutes: GST returns for last 12 months.
Star MSME E-Rickshaw Finance: Valid e-rickshaw permit, purchase invoice.
PMMY: Proof of business activity, category proof for Shishu/Kishore/Tarun loans.

Factors for BOI Business Loans

Credit Score and History:
- CIBIL score preferably above 750 for better approval and rates.
- Clean credit history with no defaults or late payments.
- Entry-level credit rating (e.g., SBS 5) required for some contractor loans.
Business Vintage and Stability:
- Minimum 2-3 years of operations in same locality for most schemes.
- Proof of business continuity (e.g., ITR, trade license) needed.
- Startups may qualify under specific schemes with relaxed requirements.
Business Income and Turnover:
- BOI evaluates annual turnover and profitability.
- Higher revenue and stable income reduce perceived risk.
- For PSB Loans in 59 Minutes, GST returns are analyzed.
Nature of Business:
- Eligible sectors include manufacturing, trading, services, healthcare, education, transport.
- High-risk industries may face stricter scrutiny.
Collateral and Margin:
- Secured loans require collateral (e.g., property, fixed deposits).
- Unsecured options available under PMMY, CGTMSE, or CGSS.
- Margin: Typically 15-25% depending on asset financed.
Loan Amount and Purpose:
- Ranges from ₹1 lakh to ₹15 crore depending on scheme.
- Purpose (working capital, expansion, equipment) affects terms.
- Higher amounts may attract lower rates.
Repayment Capacity and Tenure:
- BOI assesses ability to repay through income stability and cash flow.
- Tenure ranges from 12 months to 15 years depending on scheme.
- Strong DSCR (≥1.5) indicates sufficient repayment capacity.

Frequently Asked Questions (FAQs)

What types of business loans does Bank of India offer?

BOI offers various loans for businesses, especially for Micro, Small, and Medium Enterprises (MSMEs) and startups. Some examples include:
• Star SME Auto Express: For buying new vehicles for business.
• Star SME Education Plus: For educational institutions to build or repair infrastructure.
• BOI Star Doctor Plus: For doctors or healthcare businesses.
• Star Start-up Scheme: For startups to fund innovation or new products.
• Star MSME E-Rickshaw Finance: For buying e-rickshaws.
• PSB Loans in 59 Minutes: Quick loans for MSMEs (₹1 lakh to ₹5 crore).
• Pradhan Mantri Mudra Yojana (PMMY): For micro-businesses up to ₹10 lakh.

Who can apply for a BOI business loan?

Individuals: Proprietors, professionals (like doctors), or self-employed people.
Businesses: Partnership firms, private limited companies, trusts, or societies.
Startups: Recognized startups as per government policy.
MSMEs: Businesses operational for at least 2–3 years with profit records (for some schemes).
Specific schemes have unique rules, e.g., Star MSME E-Rickshaw Finance requires an e-rickshaw permit, or BOI Star Doctor Plus is for qualified doctors aged 25–60.

What is the loan amount I can get?

Loan amounts vary by scheme:
PSB Loans in 59 Minutes: ₹1 lakh to ₹5 crore.
Star SME Contractor Credit Line: ₹10 lakh to ₹5 crore.
Pradhan Mantri Mudra Yojana: Up to ₹10 lakh.
General MSME Loans: Up to ₹15 crore in some cases.
The exact amount depends on your business needs, credit rating, and repayment capacity.

What are the interest rates for BOI business loans?

Interest rates start at 9.70% per annum (base rate as of 2015) but vary based on:
Your credit score (a score of 750+ helps get better rates).
Loan amount and scheme.
Business credit rating (e.g., SBS 5 or higher for some loans).
Rates are linked to the bank’s MCLR (Marginal Cost of Funds Based Lending Rate), which was 8.15% as of December 2022.
Some schemes, like Star Weaver MUDRA, offer subsidized rates (e.g., 6% with government support). Always check the latest rates on BOI’s website.

What documents do I need to apply?

Common documents include:
Identity Proof: Aadhaar, PAN, or passport.
Address Proof: Utility bill or rental agreement.
Business Proof: GST registration, business license, or CAC registration (for companies).
Financial Documents: Last 2–3 years’ profit/loss statements, balance sheets, and ITRs.
Loan Application Form: Filled with details like loan amount and purpose.
Specific schemes may need extra documents, like a doctor’s certificate for Star Doctor Plus or an e-rickshaw permit for Star MSME E-Rickshaw Finance.

How can I apply for a BOI business loan?

Online:
Visit the BOI website (www.bankofindia.co.in).
Go to the “Business” section and select the loan scheme.
Click “Apply Now” and fill in the application form.
Submit required documents online.
Bank officials will contact you for further steps.
Offline:
Visit the nearest BOI branch.
Ask for the business loan application form.
Submit the form with documents.
PSB Loans in 59 Minutes: Apply via the PSB portal for quick approval.

How long does it take to get the loan approved?

Approval time depends on the scheme:
PSB Loans in 59 Minutes: Approval within 59 minutes, with funds disbursed in a few days.
Other loans may take a few days to weeks, depending on document verification and credit assessment.
Having a good CIBIL score (750+) and complete documents speeds up the process.

Can I check the status of my loan application?

Yes, you can track your application online:
Visit the BOI website or the loan tracking portal.
Enter your loan application number and registered mobile number.
The portal will show the status (e.g., under review, approved, or rejected).

What happens if my loan application is rejected?

You can reapply, but approval depends on the bank’s discretion. Reasons for rejection may include:
Low credit score or poor repayment history.
Incomplete documents.
Not meeting eligibility criteria.
Fix the issues (e.g., improve your credit score or provide missing documents) before reapplying.

What are the fees and charges for BOI business loans?

Processing Fees: Up to 2% of the loan amount (varies by scheme, minimum ₹1,000, maximum ₹10,000 for some loans).
Other Charges: May include documentation fees or prepayment penalties (check scheme details).
Some schemes, like Star Weaver MUDRA, have lower or no fees due to government subsidies.
Always confirm fees before applying, as they can change.

List of BOI Business Loans

Star SME Auto Express
Star SME Education Plus
Star Weaver MUDRA Scheme
Stand-Up India Scheme
Trade Finance

BOI Star Doctor Plus
Star Start-up Scheme
SPB Loans in 59 minutes
PMMY Scheme

Star MSME E-Rickshaw Finance
Star Laghu Udyami
Star Channel Credit
Working Capital Scheme

Star SME Contractor Credit Line
Star SME Liquid Plus
BOI Star Vyapar
Term loans

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