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Featured Business Loan Schemes from Indian Overseas Bank

  • Term Loans:
    Purpose: For acquiring fixed assets like land, buildings, plant, and machinery, or for setting up new units, expansion, or upgrading existing units.
    Loan Amount: Up to ₹10 crore (higher in specific cases).
    Margin: Up to 75% of the value of fixed assets.
    Repayment: Typically up to 7 years, based on project cash flows.
  • Working Capital Loans:
    Purpose: Available as cash credit, letter of credit, bill limit, or letter of guarantee to meet day-to-day operational needs.
    Loan Amount: Need-based, subject to eligibility.
    Security: No collateral required for credit limits up to a specified threshold.
    Repayment: Shorter cycles, often renewable annually.
  • MSME Loans:
    Purpose: For enterprises in manufacturing or services sectors, supporting business development, liability transfer, or working capital needs.
Credit Card Promotion
    • IOB Expo Gold Card: For exporters with A or A+ credit ratings, offering export credit with a 3-year validity, renewable for another 3 years.
      Eligibility: Exporters with strong track record.
    • Business Loan for IT and ITES Sector: Funds capital expenditure or working capital for IT/ITES businesses.
      Loan Terms: Decided case-by-case.
    • PSB Loans in 59 Minutes: Loans up to ₹5 crore approved within 59 minutes.
      Eligibility: Businesses with GST registration and ITR for at least 1 year.
    • Mudra Loans: Categorized under Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), and Tarun (up to ₹10 lakh) schemes.
      Purpose: For small businesses and startups.
      Security: Collateral-free.
    • Collateral-Free Loans: Available up to ₹1 crore under the CGTMSE scheme.
      Guarantee Fee: 1-1.5% of loan amount.
    • Customized Loan Products: Tailored solutions based on business needs and cash flow patterns.
    • Government-Backed Schemes: Loans under Mudra, CGTMSE, and other government initiatives.
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Benefits of Indian Overseas Bank Business Loans

  • Access to Flexible Funding: Loans ranging from ₹25,000 to ₹10 crore (or higher in specific cases) cater to diverse needs like working capital, asset purchase, expansion, or setting up new units.
  • Collateral-Free Options: Loans up to ₹1 crore available under the CGTMSE scheme without requiring collateral, reducing financial burden for small businesses.
  • Competitive Interest Rates: Starting at 11.49% p.a. (as of March 2025), with rates linked to MCLR, ensuring transparency and affordability.
    • Quick Approval and Disbursal: Schemes like PSB Loans in 59 Minutes offer approval within an hour, enabling businesses to address urgent financial needs.
    • Customized Loan Terms: Flexible repayment tenures, typically up to 7 years, with options like EMI, balloon, or bullet payments tailored to cash flow.
    • Support for Business Growth: Funds can be used for expansion, modernization, or upgrading technology, helping businesses stay competitive.
    • No Prepayment Charges: Certain loans may allow prepayment without penalties, enabling businesses to save on interest costs if they repay early.
    • Tax Benefits: Interest paid on business loans is tax-deductible under the Income Tax Act, reducing the overall tax liability for businesses.
    • Minimal Processing Fees: No processing fees for loans up to ₹25,000, making small loans cost-effective.
    • Support for Diverse Applicants: Available to MSMEs, exporters, and businesses in manufacturing, services, or IT/ITES sectors.
    • Enhanced Credit Profile: Timely repayment of business loans improves the business's credit score, increasing eligibility for future financing at better terms.
    • Specialized Schemes for Exporters: IOB Expo Gold Card offers export credit with a 3-year validity (renewable), supporting exporters with high credit ratings (A or A+).
Check Best Gold Loan Offers

How to Apply for Indian Overseas Bank Business Loans

  • 1. Online Application
    • Visit the Official Website: Go to www.iob.in
    • Navigate to the "Loans" or "MSME" section, and select "Business Loans" or the specific scheme
    • Choose the Loan Scheme: Browse available schemes and select the one that suits your business needs
    • Access the Application Form: Click on "Apply Loan/Track Status" or a similar link
    • Fill Out the Application: Provide personal details, business details, and loan requirements
    • Upload Documents: Upload scanned copies of required documents, including business registration, financial statements, and ID proofs
    • Submit the Application: Review the entered details and submit the form
  • 2. Offline Application
    • Visit a Branch: Locate the nearest Indian Overseas Bank branch
    • Consult a Loan Officer: Discuss your business needs and loan requirements
    • Collect and Fill the Application Form: Obtain the business loan application form from the branch
    • Submit Documents: Provide physical copies of required documents such as business plans, financial documents, and ID proofs
    • Verification and Approval: The bank will verify your application, including credit score and collateral evaluation
    • Loan Disbursement: Once approved, sign the loan agreement, complete the formalities, and receive the loan disbursement
    • Repayment Schedule: Discuss the repayment options and schedules with the loan officer

Eligibility Criteria for Indian Overseas Bank Business Loans

  • Applicant Type:
    • Individuals, proprietorships, partnership firms, Limited Liability Partnerships (LLPs), private/public limited companies.
    • Women entrepreneurs, SC/ST entrepreneurs, and MSMEs are eligible for specific schemes.
  • Business Type:
    • Engaged in lawful activities such as manufacturing, trading, services, or processing.
    • Specific schemes for exporters (IOB Expo Gold Card) or IT/ITES businesses.
  • Business Registration:
    • Valid GST Registration Certificate (where applicable).
    • Udyam Registration Certificate for MSMEs.
    • Other registrations like Shop and Establishment Certificate or company incorporation documents.
  • Business Vintage:
    • Minimum 2–5 years of business operations for most schemes.
    • New businesses may qualify under schemes like Mudra with relaxed vintage requirements.
  • Age:
    • Applicant should typically be between 21 and 65 years at the time of loan maturity.
  • Creditworthiness:
    • Good credit history with no defaults or bankruptcies.
    • Satisfactory CIBIL score (generally 700 or above).
    • For IOB Expo Gold Card, A or A+ credit rating required.
Check Best Gold Loan Offers

Documents Required for Indian Overseas Bank Business Loans

  • Identity Proof (any one):
    - Aadhaar Card
    - PAN Card
    - Voter ID
    - Passport
    - Driving License
  • Address Proof (for applicant and business, any one):
    - Aadhaar Card
    - Utility bills (electricity, water, or telephone bill, not older than 3 months)
    - Rental agreement
    - Passport
    - Property tax receipt
  • Business Proof:
    - GST Registration Certificate (if applicable)
    - Udyog Aadhaar or Udyam Registration Certificate (for MSMEs)
    - Shop & Establishment Certificate
    - Partnership Deed (for partnership firms)
    - Certificate of Incorporation and Memorandum & Articles of Association (for companies)
    - Trade License or other statutory permits (if applicable)
  • Financial Documents:
    - Audited Financial Statements: Balance sheets and profit & loss statements for the last 3 years
    - Income Tax Returns (ITR): For the last 3 years (self and business, if applicable)
    - Sales Tax Returns: For the last 3 years (if applicable)
    - Bank Statements: Last 6-12 months from any scheduled commercial bank
    - Projected Balance Sheet: For term loans or loans above ₹2 lakh

Factors for Indian Overseas Bank Business Loans

  • Credit Score and Credit History:
    - A good credit score (typically 700 or above on CIBIL) is crucial.
    - No history of loan defaults, bankruptcy, or late payments.
    - For IOB Expo Gold Card, an A or A+ credit rating is required.
  • Business Profile and Stability:
    - Minimum of 2–5 years of business continuity.
    - Consistent revenue and profits reflected in financial statements.
    - Higher turnover supports larger loan amounts.
  • Financial Documents and Repayment Capacity:
    - ITR for the last 2–3 years shows taxable income and financial stability.
    - CA-certified balance sheet and profit & loss statements for the last 2 years.
    - Bank statements for the last 6–12 months reflect cash flow.
    - Debt Service Coverage Ratio (DSCR) above 1.5 preferred for term loans.
  • Loan Amount and Purpose:
    - The amount requested must align with the business's financial capacity.
    - Clear, justifiable purpose supported by documents like quotations or contracts.
    - For secured loans, loan amount capped at 75% of collateral's value.
  • Collateral and Security:
    - Collateral may include property, machinery, or fixed deposits.
    - Hypothecation or mortgage might be required for large loan amounts.
    - Collateral value should be clearly documented and appraised.
  • Business Registration and Legal Compliance:
    - Business should be legally registered (proprietorship, partnership, LLP, or private limited).
    - Must have GST registration and necessary trade licenses.
    - Comply with all local, state, and central regulations.

Frequently Asked Questions (FAQs)

What types of business loans does Indian Overseas Bank offer?
IOB provides various business loan schemes, including:
• Term Loans: For purchasing fixed assets like machinery, land, or expansion.
• Working Capital Loans: For daily operations (cash credit, letter of credit, etc.).
• MSME Loans: For micro, small, and medium enterprises.
• Mudra Loans: For micro-enterprises (Shishu, Kishor, Tarun schemes up to ₹10 lakh).
• PSB Loans in 59 Minutes: Quick loans up to ₹5 crore.
• IOB Expo Gold Card: For exporters with A or A+ credit ratings.
• IT/ITES Business Loan: For IT and IT-enabled services businesses.
Who is eligible for an IOB business loan?
Eligible Entities:
• MSMEs in manufacturing or services sectors.
• Sole proprietorships, partnerships, or private limited companies.
• Exporters (for specific schemes like IOB Expo Gold Card).
• IT/ITES businesses.
Criteria:
• Business operational for 2–5 years (varies by scheme).
• Good credit score (preferably 700+ on CIBIL).
• Age of applicant: 21–65 years at loan maturity.
• Valid business registration (GST, Udyam, trade license).
• Financial stability (proven via ITR, balance sheet, bank statements).
What is the maximum loan amount I can get?
Loan amounts range from ₹25,000 to ₹10 crore (or higher in specific cases).
• Collateral-Free Loans: Up to ₹1 crore under the CGTMSE scheme.
• Mudra Loans: Up to ₹10 lakh.
• PSB Loans in 59 Minutes: Up to ₹5 crore.
The final amount depends on the business's financials, creditworthiness, and loan purpose.
What are the interest rates for IOB business loans?
Interest rates start at 11.49% p.a. (as of March 2025) but vary based on:
• Loan type (secured or unsecured).
• Credit score (higher scores may get lower rates).
• Collateral offered.
• Market conditions and IOB's Marginal Cost of Lending Rate (MCLR).
Contact IOB for the latest rates, as they are subject to change.
Do I need collateral for an IOB business loan?

• Collateral-Free Loans:
Available up to ₹1 crore under the CGTMSE scheme, with a guarantee fee (1–1.5% one-time, plus 0.50–0.75% annual service fee).
Schemes like Mudra or PSB Loans often don't require collateral.
• Secured Loans:
Required for loans above ₹1 crore or non-CGTMSE schemes.
Collateral can include property, machinery, or inventory.
Secured loans typically have lower interest rates.
What documents are required to apply for a business loan?
Common documents include:
• Identity/Address Proof: PAN, Aadhaar, voter ID, passport, utility bills.
• Business Proof: GST registration, Udyam certificate, trade license, partnership deed, or incorporation certificate.
• Financial Documents: ITR (2–3 years), CA-certified balance sheet and profit & loss statements (2 years), bank statements (6–12 months).
• Loan-Specific Documents:
Project report or business plan (for term loans).
Export orders (for IOB Expo Gold Card).
GST returns (for PSB Loans).
• Collateral Documents (if applicable): Property title deed, valuation report.
How can I apply for an IOB business loan?
Online:
• Visit www.iob.in, go to the "Loans" or "MSME" section, select the loan scheme, and fill out the application form.
• Upload scanned documents and submit.
• For PSB Loans, apply via www.psbloansin59minutes.com.
Offline:
• Visit an IOB branch, collect the application form, and submit it with documents.
• Discuss terms with the loan officer.
• Track the application using the reference number (online) or through the branch.
How long does it take to get a business loan approved?

• PSB Loans in 59 Minutes: In-principle approval within 59 minutes; final disbursal within days.
• Other Loans: Typically 7–30 days, depending on:
Loan type (term loans may take longer due to collateral valuation).
Completeness of documentation.
Credit and financial assessment.
Delays may occur if additional documents or clarifications are needed.
What is the repayment tenure for IOB business loans?
Generally up to 7 years, but varies by loan type:
• Term Loans: May have longer tenures based on project cash flows.
• Working Capital Loans: Shorter cycles, often renewable annually.
• Mudra/PSB Loans: Flexible tenures, typically 3–5 years.
Repayment options include EMI, balloon, or bullet payments, tailored to cash flow.
Are there any processing fees for IOB business loans?

• Nil for loans up to ₹25,000.
• Up to 4% of the loan amount for larger loans, subject to change.
• CGTMSE Fees (for collateral-free loans):
One-time guarantee fee: 1% (loans up to ₹5 lakh) or 1.5% (above ₹5 lakh).
Annual service fee: 0.50–0.75%.
Confirm fees with IOB, as they depend on loan size and scheme.

List of Indian Overseas Bank Business Loans

  • Indian Overseas Bank Term Loans
  • Indian Overseas Bank Working Capital Loans
  • Indian Overseas Bank MSME Loans
  • Indian Overseas Bank Mudra Loans
  • Indian Overseas Bank PSB Loans in 59 Minutes
  • Indian Overseas Bank IOB Expo Gold Card
  • Indian Overseas Bank Business Loan for IT and ITES Sector
  • Indian Overseas Bank Loans under CGTMSE
  • Indian Overseas Bank Stand-Up India Loan
  • Indian Overseas Bank PMEGP Loan
  • Indian Overseas Bank Non-Fund-Based Facilities
  • Indian Overseas Bank Customized Business Loans