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Key Features of ICICI Bank SME Loans

  • Variety of Loan Products: ICICI Bank provides comprehensive financial solutions for SMEs, including:
    • Working Capital Finance: Includes Cash Credit and Overdraft facilities to meet day-to-day operational expenses like inventory management and salaries.
    • Term Loans: Designed for long-term investments such as purchasing commercial assets or expanding existing units.
    • GST Business Loan: An overdraft facility based on GST returns, offering up to ₹1 crore without requiring financial statements.
    • Insta-Secured Overdraft: Online platform providing secured overdraft limits up to ₹1 crore with minimal documentation.
    • Business Instalment Loan: Collateral-free loans for business upgrades or equipment purchases, repaid in EMIs.
    • Export Credit: Provides pre-shipment and post-shipment financing to support exporters.
  • Purpose: Meeting working capital requirements for daily operations. Business expansion or setting up new units. Purchase of machinery, equipment, or commercial assets. Technology upgradation or modernization of existing units. Export financing for international trade.
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    • Loan Amount: Ranges from ₹1 lakh to ₹15 crore depending on loan type and business profile. GST Business Loan: ₹10 lakh to ₹1 crore. Collateral-free loans under CGTMSE: Up to ₹2 crore.
    • Interest Rates: Competitive rates starting from Repo Rate + 6% for CGTMSE/GST loans. Secured loans: Up to Base Rate + 5% (Base Rate was 9.70% as of November 2015). Unsecured loans: Up to 17% per annum.
    • Loan Tenure: Flexible repayment periods, typically up to 7 years for term loans. Up to 15 years for loans against property. Overdraft facilities are renewable annually.
    • Security and Collateral: Collateral-Free Loans: Available under CGTMSE (up to ₹2 crore) and PMMY (up to ₹10 lakh). For secured loans, collateral options include residential, commercial, or industrial properties, fixed deposits, or liquid securities.
    • Repayment Options: Flexible repayment through Equated Monthly Installments (EMIs) for term loans. Overdraft facilities allow businesses to draw funds as needed. No prepayment penalties for Micro and Small Enterprises after first EMI.
    • Processing Fees and Charges: Processing fees typically 1-2% of the loan amount. Documentation charges and other fees vary by scheme and loan amount.
    • Eligibility Criteria: Age: 21 to 65 years at loan maturity (25-65 for doctors/women entrepreneurs). Business Continuity: Typically 3 years of operations for existing businesses. Entities: Sole proprietorships, partnerships, private/public limited companies engaged in SME activities. Credit Score: Preferably good credit history (700+) with no defaults.
    • Digital Application Process: Online application through bank's official website or InstaBIZ app. Minimal documentation for digital applications like GST Business Loan. Instant approval for pre-qualified customers (within 2 working days).
    • Government Support and Subsidies: CGTMSE Coverage: Collateral-free loans with guarantee cover of 50-85%. Support for schemes like Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India. Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgrades.
    • Additional Benefits: Specialized offerings for women entrepreneurs and startups. Dedicated relationship managers for personalized service. Integration with ICICI Bank's digital platforms for easy management.
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Benefits of ICICI Bank SME Loans

  • Flexible Financing Options: Access to diverse loan products (working capital, term loans, GST loans, export credit) for various needs with amounts ranging from ₹1 lakh to ₹15 crore. Multiple loan variants ensure tailored solutions for specific industries like manufacturing, healthcare, or startups.
  • Collateral-Free Options: Unsecured loans under schemes like CGTMSE (up to ₹2 crore) and PMMY (up to ₹10 lakh) eliminate the need for collateral, reducing financial burden. GST Business Loan requires minimal documentation without audited financials.
  • Quick and Hassle-Free Process: Minimal documentation and online application through ICICI Bank's website or InstaBIZ app streamline the process. Instant approvals and fast disbursals, especially for pre-qualified customers (GST Business Loan sanctioned in 2 days).
    • Competitive Interest Rates: Attractive rates starting at Repo Rate + 6% for CGTMSE/GST loans and up to 17% for general business loans. Lower rates for secured loans (from 10.75% p.a. for Insta-Secured Overdraft).
    • Flexible Repayment Terms: Loan tenures range from 1 year to 15 years, allowing businesses to align repayments with cash flow cycles. EMI-based repayments for term loans and flexible drawdowns for overdraft facilities.
    • Support for Business Growth: Funds can be used for capital expenditure, business expansion, or meeting operational expenses. Specialized products like iStartup 2.0 support new businesses with loans up to ₹40 lakh.
    • Improved Cash Flow Management: Overdraft and cash credit facilities provide instant liquidity for short-term needs without disrupting operations. Working capital solutions tailored to seasonal business requirements.
    • Government-Backed Support: Loans under CGTMSE provide credit guarantees, reducing lender risk and enabling easier access to collateral-free financing. Benefits under PMMY, Stand-Up India, and schemes for eligible businesses.
    • Customized Solutions for Diverse Sectors: Tailored offerings for women entrepreneurs, startups and professionals ensure relevance to specific business models. Special healthcare equipment loans for doctors and hospitals.
    • Enhanced Digital Access: Integration with InstaBIZ app and Internet Banking enables 24x7 loan applications and account management. Digital tools simplify monitoring and repayment, saving time for business owners.
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How to Apply for ICICI Bank SME Loans

  • 1. Online Application
    • Step 1: Visit the Official Website or App
      Go to www.icicibank.com and navigate to the "Business Loans" section under "Business Banking." Alternatively, use the InstaBIZ App or Internet Banking (especially for pre-qualified customers).
    • Step 2: Choose the Loan Product
      Select the appropriate SME loan variant (e.g., GST Business Loan, Term Loan, Insta-Secured Overdraft) based on your business needs.
    • Step 3: Fill the Application Form
      Provide basic details such as business name, type (proprietorship, partnership, etc.), contact information, loan amount, and purpose.
    • Step 4: Upload Documents
      Upload digital copies of required documents (see below for document list). Ensure documents are clear and meet the bank's specifications.
    • Step 5: Submit and Track
      Submit the application online. Receive an application reference number to track the status via the website, app, or customer service.
  • 2. Offline Application
    • Step 1: Visit a Branch
      Locate the nearest ICICI Bank branch for dedicated support.
    • Step 2: Consult a Relationship Manager
      Discuss your business needs and select the appropriate SME loan product with the help of a bank representative.
    • Step 3: Complete the Application Form
      Fill out the physical application form provided by the branch.
    • Step 4: Submit Documents
      Provide hard copies of the required documents (listed below).
    • Step 5: Follow Up
      The bank will process the application, and you'll be notified about approval, additional requirements, or disbursal timelines.
  • 3. Through Customer Service (Optional)
    • Contact ICICI Bank's customer care at 1860 120 6699 to initiate the process.
    • A representative may guide you to apply online or visit a branch.

Eligibility Criteria for ICICI Bank SME Loans

  • 1. Business Classification
    • The business must qualify as a Micro, Small, or Medium Enterprise (MSME) per the MSMED Act, 2006:
    • Micro: Investment ≤ ₹1 crore, Turnover ≤ ₹5 crore.
    • Small: Investment ≤ ₹10 crore, Turnover ≤ ₹50 crore.
    • Medium: Investment ≤ ₹50 crore, Turnover ≤ ₹250 crore.
    • Udyam Registration is recommended to confirm MSME status.
  • 2. Business Type
    • Eligible entities include sole proprietorships, partnerships, LLPs, private/public limited companies (unlisted), trusts, or societies.
    • Specific loan products may target certain sectors (e.g., doctors for Medical Equipment Loan).
  • 3. Operational History
    • Minimum 3 years of business operations typically required (1 year for startups under iStartup 2.0).
    • Some schemes may have relaxed requirements for pre-qualified customers.
  • 4. Credit History
    • Good credit score (preferably 700 or above) for the business and its promoters/partners/directors.
  • 5. Purpose of Loan
    • Eligible purposes include working capital, capital expenditure, business expansion, or setting up new units.
  • 6. Financial Stability
    • Ability to contribute margin (typically 20-25% of project cost).
    • Submission of financials (ITR, Balance Sheet, P&L) to demonstrate repayment capacity.
  • 7. Scheme-Specific Eligibility Criteria
    • GST Business Loan: Active GST registration with consistent filings for at least 12 months.
    • Insta-Secured Overdraft: Requires existing ICICI Bank current account for higher limits.
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Documents Required for ICICI Bank SME Loans

  • 1. KYC Documents (for Proprietor/Partners/Directors):
    PAN Card of the individual.
    Identity Proof (any one): Aadhaar Card, Voter ID, Passport, Driving License.
    Passport-size Photograph of the applicant.
  • 2. Business Proof:
    Udyam Registration Certificate (mandatory for MSME classification).
    Partnership Deed (for Partnership Firms).
    Certificate of Incorporation and Memorandum & Articles of Association (for Private/Public Limited Companies).
    Shops and Establishment Certificate.
    GST Registration Certificate.
    Trade License or other relevant business licenses (if applicable).
  • 3. Address Proof (for Business and Applicant):
    Utility bills (electricity, water, or telephone bill – not older than 2 months).
    Rent Agreement (if business premises are rented).
    Property ownership documents (for owned premises).
    Aadhaar Card (if address is updated).
  • 4. Financial Documents:
    Income Tax Returns (ITRs) for the last 2 years (business and personal, if applicable).
    Profit & Loss Statement and Balance Sheet for the last 2 years (audited, if required).
    Computation of Income for the last 2 years.
    Note: For loans like GST Business Loan or InstaOD (up to ₹1 crore), financials may not be required if GST returns or bank statements suffice.
  • 5. Bank Statements:
    Last 6–12 months’ bank statements of the primary business account (preferably ICICI Bank for faster processing).
    Statements should reflect regular transactions and turnover.
  • 6. GST Returns:
    Last 12 months’ GST returns (e.g., GSTR-3B, GSTR-1).
    Mandatory for assessing turnover and eligibility for loans without audited financials.
  • 7. Collateral Documents (for Secured Loans):
    Property documents (for residential, commercial, or industrial property): Title deed, Sale agreement, Property tax receipts, Approved building plan, NOC from relevant authorities.
    Fixed Deposit certificates (if pledging FD, up to 90% of FD value).
    Liquid securities (e.g., mutual funds, bonds, if acceptable).
    Valuation report (may be required during processing).
  • 8. Loan Application Form:
    Duly filled and signed ICICI Bank SME loan application form (available online or at branches).
    Include details like loan amount (₹1 lakh to ₹15 crore), purpose, and tenure.
  • 9. Additional Documents (Based on Loan Type):
    GST Business Loan: GST registration and last 12 months’ GST returns. Minimal collateral documents (e.g., self-occupied property papers, if required).
    Insta-Secured Overdraft: Property or FD documents for collateral. Existing ICICI Bank current account details (for higher limits up to ₹50 lakh).
    Business Instalment Loan: Business vintage proof (e.g., 5 years’ financials or registration documents). Turnover proof (₹15 lakh for professionals, ₹40 lakh for non-professionals).
    Export Credit: IEC certificate, Export orders or contracts, Shipping bills or invoices.
    Government Schemes:
    • CGTMSE: Udyam Registration and business profile details.
    • PMMY: Proof of micro-enterprise status and loan purpose (up to ₹10 lakh).
    • Stand-Up India: Community certificate (for SC/ST) or gender proof (for women), plus project report for greenfield projects.
    • CLCSS: Proof of technology upgradation (e.g., equipment purchase invoices).
  • 10. Other Supporting Documents (if applicable):
    Business plan or project report (for term loans or expansion projects).
    Existing loan statements (if any, to assess repayment history).
    Post-dated cheques or ECS mandate (for repayment setup).
    Credit rating report (e.g., CIBIL score, if available).
    Professional degree/certificate (for doctors, CAs, etc., applying for specific loans).

Factors Considered for ICICI Bank SME Loans

  • 1. Business Profile and Type
    Entity Type: The business must be a Sole Proprietorship, Partnership Firm, Private/Public Limited Company, or self-employed professional (e.g., doctors, CAs). The legal structure impacts loan terms and documentation.
    Industry/Sector: Sectors like manufacturing, trading, services, retail, or pharmaceuticals are eligible, but speculative or prohibited industries may be excluded.
    MSME Classification: Businesses with Udyam Registration (Micro, Small, or Medium Enterprises) qualify for government-backed schemes like CGTMSE or PMMY, affecting collateral requirements and loan limits.
  • 2. Business Vintage
    Minimum operational history:
    1 year: For startups or new businesses (e.g., iStartup 2.0 loans).
    3 years: For most SME loans (e.g., working capital, GST Business Loan).
    5 years: For specific products like Business Instalment Loan.
    Longer vintage enhances credibility and approval chances, indicating business stability.
  • 3. Financial Performance
    Turnover: Minimum annual turnover of ₹15 lakh (professionals), ₹40 lakh (non-professionals), or ₹60 lakh (preferred). Higher turnover supports larger loan amounts (₹1 lakh to ₹15 crore).
    Profitability: Business should be profitable for at least 2 years, verified through ITRs, Profit & Loss statements, or balance sheets.
    Cash Flow: Strong and consistent cash flows (assessed via bank statements or GST returns) demonstrate repayment capacity. For loans like GST Business Loan, GST filings (last 12 months) are critical to assess turnover and financial health without audited financials.
  • 4. Creditworthiness
    Credit Score: A score of 700+ (CIBIL or equivalent) for the proprietor, partners, or directors is preferred. A higher score improves approval odds and may secure lower interest rates (10.75%–17% p.a.).
    Repayment History: No defaults or overdue loans. Clean repayment records for existing loans enhance eligibility.
    Credit Rating: For larger loans, an external credit rating (e.g., CRISIL, ICRA) may be considered for businesses.
  • 5. Collateral and Security
    Secured Loans: Availability of collateral like residential/commercial/industrial property, fixed deposits (up to 90% of FD value), or liquid securities impacts loan amount and interest rates (e.g., 10.75% p.a. for Insta-Secured Overdraft).
    Collateral-Free Loans: Under schemes like CGTMSE (up to ₹2 crore) or PMMY (up to ₹10 lakh), no collateral is needed, but compliance with scheme criteria is crucial.
    Collateral Valuation: The market value and quality of pledged assets (verified by bank-approved valuers) influence loan-to-value ratios and approval.
  • 6. Loan Purpose
    Usage: The intended use of funds (e.g., working capital, asset purchase, expansion, export financing, or technology upgradation) determines the loan product and terms.
    Specific Purpose: Export credit requires additional documents (e.g., IEC, export orders), while schemes like CLCSS need proof of technology upgrades.
  • 7. Loan Amount and Tenure
    Amount: Ranges from ₹1 lakh to ₹15 crore, based on business needs, turnover, and repayment capacity.
    GST Business Loan: ₹10 lakh to ₹1 crore.
    InstaOD: Up to ₹50 lakh (ICICI customers) or ₹25 lakh (non-customers).
    Tenure: Typically up to 7 years (or 15 years for loans against property). Longer tenures require stronger financials and collateral.
  • 8. Documentation
    Required Documents: KYC (PAN, Aadhaar, etc.), Business proof (Udyam Registration, Partnership Deed, etc.), Financials (ITRs, P&L, balance sheets, or GST returns), Bank statements (6–12 months), and Collateral documents (for secured loans).
  • 9. Government Schemes and Subsidies
    Eligibility: Eligibility for schemes like CGTMSE, PMMY, Stand-Up India, or CLCSS influences loan terms.
    CGTMSE: Collateral-free loans up to ₹2 crore with 50–85% guarantee coverage.
    PMMY: Up to ₹10 lakh for micro-enterprises.
    Stand-Up India: ₹10 lakh to ₹1 crore for SC/ST or women entrepreneurs.
    CLCSS: 15% subsidy for technology upgrades.

Frequently Asked Questions (FAQs)

1. What types of SME loans does ICICI Bank offer?
ICICI Bank offers a variety of SME loans, including:
- Working Capital Loans: Cash Credit, Overdraft for daily operations.
- Term Loans: For asset purchase, expansion, or modernization.
- GST Business Loan: Overdraft up to ₹1 crore based on GST returns.
- Insta-Secured Overdraft: Up to ₹50 lakh with collateral.
- Business Instalment Loan: Collateral-free loans for equipment or upgrades.
- Export Credit: Pre/post-shipment financing for exporters.
- Letter of Credit/Bank Guarantees: For trade and contracts.
- Government Schemes: CGTMSE (up to ₹2 crore), PMMY (up to ₹10 lakh), Stand-Up India, and CLCSS.
2. Who is eligible for an ICICI Bank SME loan?
Eligible entities include Sole Proprietorships, Partnership Firms, Private/Public Limited Companies, and self-employed professionals (e.g., doctors).
Key criteria:
- Business vintage: 1 year (startups), 3 years (general), or 5 years (specific loans).
- Turnover: ₹15 lakh (professionals), ₹40 lakh (non-professionals), or ₹60 lakh (preferred).
- Age: 21–65 years (25–65 for doctors/women entrepreneurs).
- Credit score: Preferably 700+.
- Udyam Registration for MSME benefits.
- Profitable business for 2 years (except startups).
3. What is the loan amount and tenure for SME loans?
Loan Amount: ₹1 lakh to ₹15 crore, depending on the product:
- GST Business Loan: ₹10 lakh–₹1 crore.
- InstaOD: Up to ₹50 lakh (ICICI customers) or ₹25 lakh (non-customers).
- CGTMSE: Up to ₹2 crore (collateral-free).
Tenure: Up to 7 years for most loans; up to 15 years for loans against property. Overdrafts are renewable annually.
4. What are the interest rates for SME loans?
Interest rates vary based on loan type, collateral, and credit profile:
- Secured loans: Up to Base Rate + 5% (Base Rate was 9.70% in 2015, subject to change).
- CGTMSE/GST loans: Repo Rate + 6% to 7%.
- Insta-Secured Overdraft: 10.75%–11% p.a.
- General business loans: Up to 17% p.a.
Rates depend on market conditions and applicant’s creditworthiness. Check icicibank.com for current rates.
5. Are collateral-free SME loans available?
Yes, ICICI Bank offers collateral-free loans under:
- CGTMSE: Up to ₹2 crore with 50–85% guarantee coverage.
- PMMY: Up to ₹10 lakh for micro-enterprises.
- Stand-Up India: ₹10 lakh–₹1 crore for SC/ST or women entrepreneurs.
- GST Business Loan and Business Instalment Loan may require minimal or no collateral for eligible applicants.
6. What documents are required to apply for an SME loan?
Standard documents include:
- KYC: PAN, Aadhaar, Voter ID, or Passport.
- Business Proof: Udyam Registration, Partnership Deed, or Certificate of Incorporation.
- Financials: 2 years’ ITRs, P&L, balance sheets (not needed for GST Business Loan).
- Bank Statements: 6–12 months.
- GST Returns: Last 12 months (for GST-based loans).
- Collateral Documents: Property papers or FD certificates (for secured loans).
Additional documents (e.g., export orders, project reports) may apply for specific loans.
7. How can I apply for an ICICI Bank SME loan?
Online: Through ICICI Bank’s website icicibank.com, InstaBIZ app, or ICICIdirect. Upload documents and submit the form.

Branch: Visit an ICICI Bank branch with documents and fill out the application.

Relationship Manager: Existing customers can contact their manager.

Phone Banking: Call 1860 120 6699 to initiate the process.

Digital applications (e.g., GST Business Loan, InstaOD) are processed faster, often within 2 days.
8. How long does it take to get an SME loan approved?
GST Business Loan/InstaOD: Sanction within 2 working days.
Express Bank Guarantees: Issued within 3 hours.
Term Loans/Secured Loans: 5–15 days, depending on collateral valuation and documentation.
Complete and accurate documents expedite approval.
9. Can startups apply for SME loans?
Yes, startups with at least 1 year of business vintage are eligible under schemes like iStartup 2.0 (₹1 lakh–₹40 lakh). A viable business plan and GST/bank statements may suffice instead of extensive financials.
10. Are there special provisions for women entrepreneurs?
Yes, women entrepreneurs can access:
- Stand-Up India: ₹10 lakh–₹1 crore for greenfield projects.
- Competitive rates and tailored support for women-owned SMEs.
- Relaxed criteria (e.g., age up to 65 years) for certain loans.
11. What government schemes are supported by ICICI Bank SME loans?
- CGTMSE: Collateral-free loans up to ₹2 crore.
- PMMY: Up to ₹10 lakh for micro-enterprises.
- Stand-Up India: For SC/ST and women entrepreneurs.
- CLCSS: 15% subsidy for technology upgrades (up to ₹1 crore).
Applicants must meet scheme-specific criteria (e.g., Udyam Registration, community certificates).
12. Can I prepay or foreclose an SME loan?
Yes, Micro and Small Enterprises (MSEs) can foreclose loans without charges after the first EMI or after 12 EMIs (depending on the loan type). Other businesses may incur foreclosure charges, subject to loan terms.
13. What is the GST Business Loan, and how is it different?
The GST Business Loan is an overdraft facility (₹10 lakh–₹1 crore) based on GST returns, requiring minimal documentation (GST filings, KYC, and bank statements). It’s sanctioned within 2 days and doesn’t always need audited financials, making it ideal for businesses with consistent GST filings.
14. Do I need an ICICI Bank account to apply?
No, but existing ICICI Bank current account holders benefit from:
- Higher loan limits (e.g., ₹50 lakh vs. ₹25 lakh for InstaOD).
- Pre-qualified offers with minimal documentation.
- Faster processing due to accessible transaction history.
15. What happens if I miss an EMI payment?
Missing an EMI may:
- Incur late payment fees.
- Negatively impact your credit score.
- Lead to additional interest or penalties.
Contact the bank immediately to discuss repayment options or restructuring.

List of ICICI Bank SME Loans

  • Working Capital Loan (Cash Credit/Overdraft)
  • Term Loan
  • GST Business Loan
  • Insta-Secured Overdraft Facility
  • Business Instalment Loan
  • Export Credit (Pre/Post-Shipment)
  • Letter of Credit (LC)
  • Bank Guarantee (BG)
  • SuperBiz Credit Line
  • Loan Against Mutual Funds
  • Gold Metal Loan
  • Fixed Deposit Overdraft
  • CGTMSE-backed Loan
  • PMMY Loan (Mudra Yojana)
  • Stand-Up India Scheme Loan
  • CLCSS Loan (Capital Subsidy)
  • iStartup 2.0 Loan
  • SME-EMPOWER Loan (Against Property)
  • Merchant Overdraft
  • Healthcare Equipment Loan