A Business Loan is an unsecured credit that you can use to meet the urgent needs of your growing company. Business loans allow you to raise funds for your company to expand your current operations, increase production, go online, purchase new equipment, and more. Business financing provides you with a fast injection of cash, allowing you to make required transactions and payments on time. You can find various business loans we have provided two of the prominent lenders offering business loans in India i.e., IndusInd Business loan v/s ICICI Business loan. First, let’s talk about IndusInd Bank Business Loan.
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IndusInd Business Loan
The commercial and electronic banking sectors are operated by IndusInd Bank’s products and services. Along with personal and corporate banking, the bank helps new and existing MSMEs, corporations, and other business units get started, expand, and run smoothly. The bank also provides financial assistance to self-employed people and professionals who want to start a new company or extend an existing one.
Types and Features of IndusInd Business Loans
1) Working Capital Finance
IndusInd Bank offers a short-term operating account facility that is reversible according to the terms and conditions. Other services offered by IndusInd Bank working capital finance include:
- Finance for inventory and receivables in a company
- Flexible account management. Operate the account as required.
- Interest charges are reduced.
2) Export Credits
Exporters can get financial aid from IndusInd Bank business loan for pre-and post-shipment transactions. It contains the following items:
- Transaction-based support
- Using a foreign exchange to fund reduces overall costs.
3) A Long-Term Loan
These loans offer long-term funding to companies who need money to expand their operations.
- The term loan is valid in both INR and foreign currency (Foreign Currency Term Loans (FCTL)).
- This loan is secured by collateral.
- Existing loans are refinanced at low interest rates.
4) Offers for Sale
- For your business’s growth, IndusInd Bank has trade offerings.
- The bank guarantees both results and financials.
5) Unsecured Business Loans
- Trade offering for your company’s expansion.
- The loan is granted based on the financials of the company. There is no need for collateral.
- The loan approval process is fast.
- Borrowers have the option of repaying the loan in Equated Monthly installments (EMIs)
ICICI Bank Small Business Loan
ICICI Bank is one of India’s largest private sector banks, with a diverse range of financial services. An applicant may Apply for an ICICI Bank Business Loan based on his or her needs.
ICICI Bank offers a variety of business loans. ICICI Bank’s various forms of business loans are described in detail.
1) Funding for Working Capital
ICICI Bank’s Working Capital Financing is structured to meet all of your working capital needs, including export credit, bank guarantees, and overdraft facilities.
Working Capital Finance has the following characteristics:
- This facility helps you to get a cash credit cap or an overdraft.
- Exporters may use the Export Credit facility to get pre-shipment and post-shipment financing.
- Bank guarantees come in a range of shapes and sizes, and they will help you fulfill your financial commitments and deliver on your promises.
- Working capital caps such as letters of credit and buyers’ credit can be obtained using non-fund-related facilities.
Interest Rate:
The Working Capital Finance interest rates provided by ICICI Bank are very competitive. On the other hand, the interest rate is not numerically specified. It varies depending on the applicant’s business profile, financial history, loan repayment tenure, and previous track record.
2) Insta OD
ICICI Bank’s Insta OD is an online lending platform that enables individuals to obtain instant loans to meet their working capital requirements.
The InstaOD facility has the following features:
- Processing online loan applications are fast and easy.
- The loan application is processed easily and safely online.
- The loan amount is disbursed extremely quickly.
- Limited documentation
- Up to Rs.15 lakhs in overdraft, and Rs.10 lakhs for new customers.
- Collateral-free loan.
- There are no fees for foreclosure or prepayment of the loan.
- You just pay interest on the amount you use. There are no commission fees.
Interest Rate:
The interest rate on ICICI Bank’s Insta OD facility, which is provided under non-priority sector lending, is 16 percent per annum.
3) Short-Term Loans
ICICI Bank provides term loans for the establishment of new industrial units, the acquisition of commercial properties, and the expansion of existing industrial units.
Term Loans have the following features:
- Loan repayment terms are flexible and can be extended up to 7 years.
- Under the CGTMSE scheme, you can get a loan of up to Rs.2 crores without putting up any collateral.
- An assessment was made based on the findings.
- Based on potential cash flows, an assessment is made.
- To meet all financial needs, especially crafted composite loans provide both working capital and term loans.
4) Loans for GST – Registered Businesses
ICICI Bank’s GST Business Loans are specifically tailored for customers looking for a quick overdraft product that does not include any financial documentation.
The GST Business Loan has the following features:
- Financial documents are not needed.
- Simple and easy to use product
- An overdraft of up to Rs.20 million is available.
- The assessment is based on the GST returns.
- Self-occupied commercial, residential, and/or industrial properties are eligible for an overdraft.
5) Tailored MSME Solutions
Micro, small, and medium enterprises, or MSMEs, may take advantage of ICICI Bank’s specially tailored loan solutions. Customers can use Customised MSME Solutions to find the best loan product for their company.
Documents Required to Apply for a Loan
- A completed application form with passport-sized photographs is required.
- Proprietor/Partner/Director Identity Evidence – Voter ID/ Passport/ PAN Card/ Driving License/ Signature Identification by the current banker (if Company)
- Business Address Evidence – recent telephone/electricity bills, voter ID, passport, property tax receipt
- Memorandum/Articles of Association (For Business) and/or Partnership Agreement The couples’ arrangement
- Liabilities-Assets Guarantor/Promoter Claims, as well as the most recent Income Tax Return
- If your company is located in leased space, you’ll need to sign a rental agreement.
- Pollution Control Board approval is expected (if applicable)
- Registration with the Small Business Administration/Ministry of Small and Medium Enterprises (SSI/MSME) (if applicable)
- Balance sheet estimates for the next two years (for a loan over Rupees 2 lakhs)
- Photocopies of all property title deeds/lease deeds provided as collateral
- Existing bankers’ account positions
- Letters of permission from facilities for the takeover of advances
- If necessary, a copy of the VAT return.
Conclusion:
Availing ICICI Bank business loan or IndusInd business loan is easy to avail and the best part is that it comes in handy and this can be among the reasons for its being one of the best business loans available in India.
