Information on bank of india loan schemes, sme loans, micro financing in India | SupportBiz

Bank of India

Focused on the growth of the MSME sector in the country, Bank of India claims to have helped over 4.5 lakh such units. This nationalized bank has several schemes for the benefit of the SMEs in India. Supportbiz talked to P Dehra, Chief Manager - Corporate Office, Bank of India about these schemes.

Dehra stated that the bank has over 100 branches across the country dealing with SME- related issues. It also has built-up SME city centers to help these units grow.

“Overall, we have 6.5 crore customers, of which over 4.5 lakh are SMEs. We cater to the needs of people belonging to different segments,” he said.

Dehra outlined the six major MSME finance schemes offered by the bank (http://www.bankofindia.co.in/english/home.aspx#).

Star Laghu Udyami Samekit Loan: This scheme targets micro and small enterprises in rural, semi-urban and urban areas. Composite loans are offered under this scheme, for which the existing rate of interest ranges between 8.5% and 9% p.a. No collateral is required for these loans.

Star SME Liquid Plus: This scheme offers loans to proprietorship/partnership firms/limited companies engaged in business for the past three years, which have audited financial statements of accounts. Registered mortgage of residential or commercial property, belonging either to the borrower or the guarantor, can be the collateral.

Star SME Auto Express: This scheme targets existing SME units that wish to purchase new vehicles. The rate of interest on such loans would depend on the situation. Suitable collateral security is required to avail of these loans.

Star SME Contractor Credit Line: This scheme targets civil contractors, mining contractors, and engineering and transport contractors. Loans are offered under this scheme to help them meet their working capital needs. Suitable collateral needs to be provided to avail of loans under this scheme.

Star Education Plus: This scheme targets educational institutions that need funds for construction, renovation, purchase of lab equipments or furniture. A guarantee by a key person and suitable collateral need to be furnished to avail of loans under this scheme.

Star MSE Term/Demand Loan: This scheme makes funds available to SMEs to help them in the purchase of plant and machinery/equipment/other movable assets. These loans are available at rates of interest between 8% and 10.75%. No collateral is required under this scheme.

“The budget for MSME loans at Bank of India is Rs. 46 crore till March 2014,” said Dehra.

“Our schemes are attractive because they are consumer-friendly, with lower rates of interest, easy accessibility, and special staff to guide people from the SME segment,” he said.

“We cannot define any particular scheme as the best, as different schemes are relevant for different people. It depends upon the need of the customer. We have schemes for everybody,” Dehra added.