One of the initial steps to expand your business is to get the appropriate funding. The ICICI business loan is a convenient, flexible and quick way to borrow money with ease by small businesses, entrepreneurs, and startups. ICICI Bank has helped more than 1 million small enterprises in India, which includes unsecured loans with very less paper work. This blog will take you through the process step by step of how to apply, what documents you will need, who can apply and how to increase your chances of being approved for an ICICI Business Loan.

What is ICICI Business Loan?

ICICI Business loan is a financial product provided by the ICICI bank to assist small and medium enterprises (SMEs), startups, and entrepreneurs to address the needs of their business. These loans are perfect when you want to expand operations, working capital financing or buy equipment- without collateral. ICICI Bank provides term loans and ICICI SME loans which are tailored to fit different industries.

To avail, you have to ensure that you meet the criteria of ICICI business loan eligibility which is age, business turnover and minimum years of operation. The ICICI business loan interest rate is competitive and can differ depending on your profile, the performance of your business and repayment history.

Make sure you have all the ICICI Bank business loan documents required before you apply including identity proof, address proof, bank statements, income tax returns and proof of business continuity. The PDF form of the ICICI Bank business loan application form can also be downloaded in the official site to initiate an offline process or apply conveniently online.

ICICI Bank Business Loan Details

Interest Rate 12.90% to 16.65%
Loan Amount Up to Rs. 40 lakhs
Loan Tenure 12 months to 60 months

ICICI Business Loan Interest Rate: Key Factors That Influence the Calculation

There are multiple factors on which basis a bank calculates your interest rate. Some of these factors are –

  • Loan amount: The ICICI business loan interest rate depends upon the loan amount you apply for. The higher the loan amount, the lesser will be the interest rate. Bank gives a loan
  • CIBIL Score: The higher the CIBIL Score, the higher the chances of getting a loan at the lowest interest. ICICI Bank offers loans at a higher interest rate if your CIBIL score is low or vice versa. However, your CIBIL score should be at least 700.                                          
  • Revenue: The Bank gives loans to borrowers whose annual turnover is at least ₹ 60,00,000. They will offer you a loan at a lower interest rate if you have higher monthly revenue.
  • Time in Business:  The minimum business existence to get a loan from ICICI Bank is 36 months. The bank offers loans at lower rates if you have significant business experience.

ICICI Business Loan Eligibility: What Are the Criteria to Qualify?

The various factors considered for the Eligibility of ICICI Business loan are:

  • Your ability to repay the loan
  • Your past track record in repayment of loans.
  • Age: Minimum at least 25 years old at the time of loan approval and maximum 65 years at the time of loan maturity.
  • Loan Amount:  Apply for a loan amount that you can comfortably service. The bank gives you loans ranging from ₹ 1 Lakh to ₹ 40 Lakh. 
  • Profitability and Revenue: The Bank requires profit for a minimum of 2 years and a minimum business turnover of ₹ 60,00,000.
  • Business Stability: The Bank requires a minimum business track record of 36 months. The bank will also look for minimum growth in sales for the last three years. 
  • ITR and Banking: Your ITR details for a minimum of 24 months and bank statement for a minimum of 6 months will be required by the Bank.
  • CIBIL Score: The Bank requires a score of 750 and above to get loan approval. The bank will check your repayment history for all current and past loans and credit cards. 
  • Entities:  Self-employed individuals, Proprietors, Private Ltd. Co., and Partnership Firms involved in the business of Manufacturing, Trading, or Services are eligible.
  • Individuals who have been in the current business for a minimum of 3 years are eligible.

What are the Benefits of ICICI Business Loan?

 There are some benefits of taking a loan from ICICI Bank loan:

  • Overdraft facility available
  • No collateral or guarantor required
  • Loan for professionals and businessman
  • You can foreclose your entire Business loan anytime after paying 6 EMI’s at foreclosure charges – 5%
  • ICICI Bank has over 2,660 branches in India where you can avail service
  •  Fast loan processing documentation is needed and gets processed faster.

What Are the ICICI Bank Business Loan Documents Required for Approval?

The following documents are required along with your Business Loan application:

  • PAN Card – For Company/Firm/Individual
  • A copy of any of the following documents as identity proof:
  • Aadhaar Card
  • Passport
  • Voter’s ID Card
  • PAN Card
  • Driving License
  •  A copy of any of the following documents as address proof:
  • Aadhaar Card
  • Passport
  • Voter’s ID Card
  • Driving License
  • Business Plan/Project Report
  • Bank statement of the previous 6 months
  • Latest ITR along with computation of income, Balance Sheet, and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
  • Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
  • Other Mandatory Documents [Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)

How can Finline Assist you to Create the Project Report for Bank Loan?

Taking an ICICI business loan is a good idea for a business owner who intends to grow or run its business without any hitch. ICICI Bank offers favourable business funding to a large number of entrepreneurs due to its easy eligibility criteria, flexible terms and quick turnaround.

Nevertheless, a persuasive project report is important to have your loan approved. That is where Finline comes in. You can design a professional project report for bank loan in your own words in only 10 minutes. Fline reports are accepted by all the public and private banks in India including ICICI. 

Click now to create your report and take the next step for your business.

ICICI Business Loan FAQs

 Yes, the project reports generated on Finline are acceptable by ICICI Bank. Finline adheres to the usual formats that are applied by the public and private banks and this way your loan application process will be more professional and easier.

 It will not take more than 10 minutes to make a project report on Finline. All you have to do is to enter some business information and the platform will create a properly structured report in the language of your choice.

 Yes, ICICI Bank provides unsecured business loans which do not involve in securing any collateral. The approval is however subject to the credit profile and turnover of your business and its repayment ability.

 ICICI Bank business loans are available to all forms of businesses, such as small and medium enterprises (SMEs), startups, traders, manufacturers and service providers having a consistent income history.

 Indeed, ICICI Bank will accept digital project reports. Digital formats, such as the ones offered by Finline, are welcome to be evaluated as long as the report is well-structured and includes the necessary financial and business information.