What is the minimum interest rate for an SME loan?

The interest rate offered by IDBI Bank varies from scheme to scheme and depends on the applicant's profile and business requirements.

Does IDBI provide startup loans for new businesses?

Yes, you can apply for a startup loan under the Mudra Yojana scheme from IDBI Bank.

How much business loan amount can I avail from IDBI Bank?

You can get a loan for up to Rs. 2 crore.

How can I check my loan status in IDBI Bank?

To check the status of your loan application, click on the link below and provide your 12-digit LATS reference number. https://www.idbibank.in/track-your-application.asp

How to calculate Interest/EMI on IDBI Business Loan?

To calculate the EMI for an IDBI business loan, you can use an EMI calculator. You'll need to enter basic loan details such as the interest rate, repayment tenure, and loan amount to determine the exact EMI amount to be repaid.

IDBI Bank Business Loan

Updated on January 30, 2025

Author: MybankingTips Team

IDBI Bank provides business loans and MSME loans to self-employed professionals, MSMEs, and other business entities at an interest rate ranging from 8.05% to 13.45% per annum. The loan amount offered through various schemes ranges from Rs. 50,000 to Rs. 5 crores, with repayment terms of up to 10 years. IDBI Bank offers a variety of loan facilities including term loans, cash credit, overdrafts, bill discounting, letter of credit, and bank guarantees. Let's discuss the different types of business loans IDBI Bank offers for various segments of entrepreneurs and MSMEs.

Comparison Table of Business Loan Interest Rates offered by MybankingTips Partners:

Bank/NBFC/Fintech	Interest Rate
SBI Bank	9.10% p.a.	Apply Now
HDFC Bank	10.00% - 22.50% p.a.	Apply Now
Kotak Mahindra Bank	16% p.a. onwards	Apply Now
RBL Bank	14%-26% p.a.	Apply Now
ICICI Bank	Up to 17% p.a.	Apply Now
Axis Bank	10.75% p.a.	Apply Now
IDBI Bank	8.05% to 13.45% p.a	Apply Now
Bank Of Baroda	10% to 15% p.a	Apply Now
Ujjivan Small Bank	Up to 2.50%	Apply Now
Bajaj Finserv	9.75% - 25% p.a.	Apply Now
IIFL Finance	12.75% - 44% p.a.	Apply Now
FlexiLoans	1% per month onwards	Apply Now
ZipLoan	1% - 1.5% per month (Flat)	Apply Now
Indifi Finance	1.5% per month onwards	Apply Now
Five Star Business Finance	Up to 2%	Apply Now
Lendingkart Finance	1.25% per month onwards	Apply Now
Tata Capital Finance	12% p.a. onwards	Apply Now
NeoGrowth Finance	15% p.a. onwards	Apply Now
Hero FinCorp	Up to 26% p.a.	Apply Now
Aye Finance	Up to 2.5%	Apply Now
Clix Capital	Up to 3%	Apply Now
Protium Finance	Up to 1.5%	Apply Now
HDB Finance	8% - 26% p.a.	Apply Now
U GRO Capital	Up to 9% p.a.	Apply Now
Mcapital Business	Up to 2% p.a.	Apply Now

Also read: Best Business Loan Interest Rate

Top 9 MSME Loans Schemes from IDBI Bank

1. Stand up India

IDBI Bank, in collaboration with the Stand Up India scheme, provides composite loans ranging from Rs. 10 lakh to Rs. 1 crore to SC/ST and Women Entrepreneurs for Green Field Projects. Through the official web portal of Stand Up India (www.standupmitra.in), prospective borrowers can apply for loans or credit facilities and access information about various existing and upcoming projects.

2. MSME Finance

IDBI Bank provides loans for micro, small, and medium enterprises (MSMEs) to fulfill their business needs at an interest rate starting from 8.05% per annum onwards.

Also read: Best Business Loan EMI Calculator

3. IDBI Mudra Loan

Under the Pradhan Mantri Mudra Yojana (PMMY), IDBI Bank offers MUDRA Loans to fulfill the business needs of all non-farm income-generating activities.

IDBI Mudra Loan – Highlights
Loan Facility	Term Loan / Cash Credit
Loan Amount	No Minimum Limit and Maximum Rs. 10 lakh
Collateral / Security	Not required
Guarantee	No third party guarantee required
Repayment Tenure	OD & CC Limit – 12 months, repayable on demand Term Loan – Up to 5 years
Processing Fee	Nil for loan up to Rs. 5 lakh Up to 0.50% of the sanctioned loan (For others)
Purpose	Cash Credit / Overdraft – To meet working capital requirements Term Loan – To meet capital expenditure that includes the purchase of equipment/furniture or any such business requirements
Margin	Nil for Loan up to Rs. 50,000 25% for others

Eligible Entities:

Individuals and MSMEs involved in non-farm entrepreneurial activities.
Manufacturing, service enterprises and trading, including professionals offering services nationwide, spanning rural, semi-urban, urban, and metro centers.

4. Business Loan for Service Sector

IDBI Bank provides business loans to self-employed individuals, professionals, and business enterprises engaged in providing or rendering services.

Business Loan for Service Sector – Highlights
Interest Rate	As per business requirements
Loan Facility	Term loan & Overdraft / Cash Credit
Loan Amount	Rs. 10 lakh – Rs. 5 crore
Processing Fee	Up to 1% of the sanctioned loan amount
Guarantee	Personal Guarantee of the promoter directors, partners
Repayment Tenure	Term Loan: 7 Years Overdraft, Cash Credit – 1 year (Annual Renewal)
Purpose	Term Loan: For the purchase, renovation, repair or development of business premises and buying of equipment, furniture, etc. Overdraft/Cash Credit: To meet working capital requirements
Security	Term Loan: Exclusive Charge on assets created out of bank finance Working Capital: Hypothecation of stock, book debts and assets created out of bank finance Collateral: Mortgage of residential or commercial properties of appropriate value
Margin	Cash Credit: 25% on stock and Book debts Overdraft: NIL Term loan: 25%

Eligible Entities*

Professionals: Engineers, CAs, CSs, Architects, surveyors, interior designers, management consultants, etc.
Self-employed/Service Enterprises: Clearing & forwarding agents, contractors, travel agents & tour operators, beauty parlors, etc.

5. Finance to Medical Practitioners (Dhanvantri Loan)

IDBI Bank provides business loans for doctors to support their daily clinic or hospital operations. The loan amount can be used for managing the facility, buying medical equipment, and setting up, upgrading, or expanding clinics.

Eligible Entities: All doctors / clinics / pathological labs / medical practitioners
Minimum Qualification: MBBS / BAMS / BHMS / BUMS / BDS

Finance to Medical Practitioners – Highlights
Loan Facility	Term Loan & Overdraft / Cash Credit
Loan Amount	Rs. 10 lakh – Rs. 10 crore
Repayment Tenure	Term Loan: Up to 10 years CC / OD: Max. 12 months (Annual Renewal)
Purpose	OD / CC: To meet the working capital requirements Term Loan: For the purchase of specialised medical equipment, setting up of new clinic / hospital, expansion of infrastructure in existing clinic / hospital, etc.
Security	Term Loan: Exclusive Charge on assets financed Working Capital: Exclusive charge on all the current assets Collateral: Mortgage of residential/commercial properties of appropriate value

6. Property Power (Loan Against Property)

Property Power loan is a type of business loan available to MSMEs, using their owned commercial or residential properties as collateral. This loan can be utilized for various purposes such as balance transfer or paying off high-interest debts, as well as fulfilling other business needs.

Eligible Entities: All potential and existing MSME customers of the bank who have been engaged in business for the past 2 years are eligible.

Property Power (Loan Against Property) – Highlights
Interest Rate	As per business requirements
Loan Amount	Rs. 10 lakh – Rs. 5 crore
Repayment Tenure	Up to 7 years, OD Max. 12 months (Annual Renewal)
Guarantee	Personal guarantee of the borrower
Facility Type	Term Loan/ Overdraft limit to fund business needs (excluding for speculative purposes)

7. General Credit Card Loan (GCC)

The GCC Loan, provided by IDBI Bank, is available to all individuals involved in non-farm entrepreneurial activities.

General Credit Card Loan – Highlights
Interest Rate	As per business requirements
Loan Amount	Rs. 50,000 – Rs. 5 lakh
Facility Type	Term loan / Cash Credit
Margin	Cash Credit: 25% Term Loan: 25%
Security	Cash Credit: Stock & book debts & all assets created out of Bank loan Term Loan: Assets acquired out of Bank loan
Repayment Tenure	Term Loan: Maximum 5 years Cash Credit: 12 months, Repayment on demand

8. Sahaj Vypar Loan

Under the Sahaj Vyapar Business Loan scheme, IDBI Bank offers funding primarily to traders, wholesalers, and retailers to fulfill their business needs. Sole proprietorships or partnership firms primarily engaged in buying and selling goods can also avail of these funds.

Eligible Entities

All types of business entities involved in trading activities, including both retail and wholesale, are eligible.

Sahaj Vyapar Loan – Highlights
Interest Rate	As per the business requirements
Processing Fee	Up to 1% of the sanctioned loan amount
Loan Amount	Minimum Rs. 10 lakh & Maximum Rs. 5 crore
Repayment Tenure	Term Loan: 5 Years Overdraft, Cash Credit, Bank Guarantee – 1 year
Margin	Cash Credit: 25% on stock and Book debts Overdraft: NIL Term Loan: 25 %
Security	Primary: Hypothecation of Stocks, Receivables, Assets financed by bank Collateral: Immovable Residential, Industrial and Commercial Property
Loan Facility	Fund Based: Cash Credit Overdraft, Term Loan, Bill Discounting Non Fund Based: Letter of Credit, Bank Guarantee

9. Loan to Small Road and Water Transport Operators

This scheme is designed to meet the loan needs of water and road transport operators. It enables small operators in these sectors to acquire vehicles or vessels for their businesses.

Loan to Small Road and Water Transport Operators – Highlights
Interest Rate	As per business requirements
Processing Fee	Up to 1% of the sanctioned loan amount
Loan Amount	Rs. 1 lakh – Rs. 2 crore
Facility Type	Term loan, Cash Credit / Overdraft & Bank Guarantee
Guarantee	Personal guarantees of the promoter directors (In the case of limited companies)
Margin	Depending upon the nature of the loan facility
Security	Exclusive Charge on assets financed Collateral security inform of immovable/liquid security (Based on nature of loan)
Repayment Tenure	OD / CC / BG – 12 months TL – Up to 5 years

Eligible Entities:

This scheme is for people in the transport business who need loans. It covers various vehicles like trucks, buses, taxis, and auto-rickshaws, as well as refrigerated vans and bulk carriers for goods like oil. It also includes water transport like boats. Applicants must have experience in the transport business.

Also read: Best Business Loan Eligibility