ICICI Bank business loan is one approach to finance your business needs. Funds are the most critical aspect of running a business. Furthermore, timely financing allows SMEs to maximize commercial prospects. The bank is a popular private sector bank in India, and it has recently introduced a new business lending package.

ICICI Bank’s Business Loan Details

• Interest Rate: 12.90% to 16.65%.
• Loan Amount: Up to Rs. 40 lakhs
• Loan tenure: ranges from 12 to 60 months.

What are the factors used to compute ICICI Bank business loan interest rate?

A bank calculates your interest rate based on a number of criteria. Some of these criteria include –

• Loan amount: The business loan rate at ICICI Bank is determined by the loan amount you apply for. The bigger the loan amount, the lower the interest rate. Bank provides a loan.
• CIBIL Score: The higher the CIBIL Score, the better the chances of receiving a loan at the lowest interest rate. If your CIBIL score is low, ICICI Bank will give you a loan with a higher interest rate, and vice versa. However, you need have a CIBIL score of at least 700.
• Revenue: The Bank provides loans to customers with an annual turnover of at least ₹60,00,000. They will offer you a loan with a lower interest rate if you have a bigger monthly income.
• Time in firm: To qualify for an ICICI Bank loan, your firm must have been in operation for at least 36 months. If you have extensive company expertise, the bank will issue you a loan at a cheaper interest rate.

What Are the Eligibility Criteria for an ICICI Bank Business Loan?

The various parameters examined for the eligibility of an ICICI business loan are:

• Your ability to repay the loan.
• Your loan payback history.
• Age: The borrower must be at least 25 years old at the time of loan acceptance and no older than 65 years at the time of maturity.
• Loan Amount: Apply for a loan that you can comfortably afford. Bank offers loans ranging from ₹1 Lakh to ₹40 Lakh.
• Profitability and revenues: The bank wants a minimum of two years of profit and a business turnover of ₹60,00,000.
• Business Stability: The bank requires at least a 36-month business track record. The bank will also check for minimal sales growth over the last three years.
• ITR and Banking: The Bank will require your ITR details for a minimum of 24 months as well as a bank statement for at least 6 months.
• CIBIL Score: The bank demands a score of 750 or higher to approve loans. The bank will look into your repayment history for all current and previous loans and credit cards.
• Entities: Self-employed persons, proprietors, private limited companies, and partnership firms engaged in the business of manufacturing, trading, or services are qualified.
• Individuals who have worked in the current business for at least three years are qualified.

What are the benefits of ICICI Bank Business Loans?

There are various perks of acquiring a loan from ICICI Bank:

• Overdraft facility is provided.
• No collateral or guarantor is required.
• Loan for Professionals and Businessmen
• You can foreclose your entire business loan anytime after paying 6 EMIs at foreclosure charges of 5%.
• ICICI Bank offers more than 2,660 branches in India where you may get service.
• Fast loan processing documentation is required and is processed quickly.

What Documents Are Required for ICICI Bank Business Loans?

The following documents are necessary for your Business Loan application:

• PAN Card – For Company, Firm, or Individual
• A copy of any of the following documents can be used to prove your identity:
• Required documents include Aadhaar, passport, and voter’s ID card.
• PAN Card Driver’s License
• A copy of any of the following documents can serve as address proof:
• Aadhaar Card Passport
• Required documents include a voter ID card and a driving license.
• Business Plan/Project Report
• Bank statement for the previous six months
• After CA certification/audit, provide the most recent ITR, income, balance sheet, and profit and loss account over the past two years, as well as proof of continuation (ITR, trade license, establishment, or sales tax certificate).
• Other Mandatory Documents [Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum and Articles of Association (certified by Director), and Board Resolution (Original)]

A business plan, often known as a project report, is an important document when requesting for a bank loan. The bank utilizes this document to assess the project’s overall feasibility, risks, financial viability, and potential. Furthermore, a well-written and convincing project report raises the likelihood of loan approval.