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Updated August 2026

Bank of India Business Loan 2026 - Rate from 9.35%, Up to Rs 2.5 Crore

BoI Star SME + International Trade Finance in 24 countries. BoI Star MSE Empowerment for women / SC / ST with rate concessions. Deep Maharashtra + Gujarat + Karnataka MSE presence. CGTMSE-covered up to Rs 2.5 Cr.

9.35%+Interest Rate
Rs 2.5 CrCGTMSE Max
5,100+Branches
24Overseas Countries
Check Eligibility Talk to Expert
BOI
Bank of India
PSU Bank

MahadevX is an Empanelled BoI Business Loan Partner

We facilitate 85+ loan applications per month with Bank of India. Our team handles direct-bank routing, document validation, and end-to-end coordination till disbursal. Service is free - lenders pay us on disbursal.

Bank Overview

About Bank of India

Bank of India (BoI), established in 1906 in Mumbai, is one of India’s oldest PSU banks with a distinctive international presence. Headquartered in Bandra-Kurla Complex Mumbai, BoI operates 5,100+ domestic branches across India along with 60+ overseas offices in 24 countries - one of the largest international footprints among Indian PSU banks. Post-independence nationalisation in 1969 shaped BoI as a scheduled commercial bank focused on both domestic priority sector lending and international trade finance.

For business borrowers, Bank of India offers two distinctive strengths. First, its BoI Star SME product family - a comprehensive PSU MSE product suite covering working capital + term loan + LAP + trade finance under a single umbrella. CGTMSE-covered rates start from 8.60% - competitive within the PSU segment. Second, unparalleled international trade finance capabilities via BoI International Trade Finance - crucial for MSE exporters + importers who need direct cross-border trade facilities without routing through correspondent banks.

Domestic MSE strength is particularly deep in Maharashtra (BoI’s home state), Gujarat, and Karnataka - covering the Mumbai-Pune-Nashik-Nagpur manufacturing belt and Ahmedabad-Vadodara-Surat industrial cluster. BoI Star Digital app supports MSE loan applications for smaller amounts. Combined with strong government-scheme distribution (Mudra, Stand-Up India, PMEGP) and BoI Star MSE Empowerment for reserved-category entrepreneurs, Bank of India is a top choice for Mumbai + Maharashtra + trade-exposed MSEs nationally.

Product Matrix

Bank of India Business Loan Products - Complete Rate Matrix (August 2026)

BoI offers a comprehensive range of business loan products across MSE + SME + Corporate divisions. Rates below are indicative - actual pricing depends on borrower profile.

Loan Product Interest Rate Max Amount Max Tenure Apply
MSME Loan
BoI Star SME + CGTMSE
 8.60% - 13.50% Rs 2.50 Cr 7 Years Apply
Startup Loan
BoI Startup + Stand-Up India
 9.25% - 13.90% Rs 1.00 Cr 7 Years Apply
Working Capital Loan
BoI Star SME WC + Packing Credit
 9.35% - 13.85% Rs 10.00 Cr 1 Years Apply
Machinery Loan
BoI Machinery + CLCSS
 9.25% - 14.55% Rs 5.00 Cr 7 Years Apply
Mudra Loan
Nil fee on Shishu
 8.70% - 12.85% Rs 20.00 Lakh 5 Years Apply
CGTMSE Loan
CGTMSE + BoI Star SME
 8.80% - 13.75% Rs 2.50 Cr 7 Years Apply
Unsecured Business Loan
Limited unsecured product
 10.85% - 15.40% Rs 25.00 Lakh 5 Years Apply
Secured Business Loan
BoI Property Loan LAP
 9.35% - 13.05% Rs 5.00 Cr 15 Years Apply
Term Loan
BoI Term Loan + Project
 9.35% - 13.90% Rs 10.00 Cr 15 Years Apply
Overdraft Facility
OD + Cash Credit
 9.35% - 14.15% Rs 10.00 Cr 1 Years Apply
Signature Products

Bank of India’s Flagship Business Loan Products

BoI Star SME

Flagship SME + MSE product family. Rate from 8.60%. Up to Rs 2.5 crore CGTMSE-covered. Composite WC + term loan.

BoI International Trade

LC + BG + Packing Credit + Post-Shipment. 24 countries, 60+ overseas offices. Best PSU alt to BoB for MSE trade.

BoI Star MSE Empowerment

Women / SC / ST entrepreneur focused. 0.25%-0.50% rate concession. Enhanced CGTMSE cover.

BoI Star Vyapar

Working capital for retail traders + wholesalers. Composite CC + term loan.

BoI Star Contractor

Civil + infrastructure contractor financing. Contract-linked WC + BG + term loan.

BoI Mudra

3-tier Mudra (Shishu / Kishore / Tarun). Rate from 8.70%. Nil fee on Shishu.

Eligibility

Bank of India Business Loan Eligibility

Business Vintage

BoI Star SME: 2 years. Star Vyapar (retail): 2 years. Star Contractor: 3 years. Star MSE Empowerment: 1 year + traction. Mudra Shishu: none.

Annual Turnover

Rs 40 lakh+ for Rs 10 lakh loan. Rs 3 crore+ for Rs 50 lakh MSE. Rs 10 crore+ for Rs 2.5 crore CGTMSE.

CIBIL Score

Personal CIBIL 680+ preferred. 650+ workable via CGTMSE. Star MSE Empowerment: relaxed for reserved-category applicants.

Udyam + GST

Udyam mandatory for MSE rates. Consistent GST filings last 12 months checked. Priority for high GST scores.

Regional Advantage

Maharashtra + Gujarat + Karnataka MSEs get BoI’s strongest branch network + processing speed.

Banking Relationship

Existing BoI current-account (6+ months) preferred. Non-BoI customers can apply - marginally slower.

Documents

Documents Required for Bank of India Business Loan

KYC + Personal Documents
PAN + Aadhaar of proprietor / all partners / all directors. 2 passport-size photographs. Address proof. For companies: DIN of all directors.
Business Registration
Business PAN. GST registration + 12 months returns. Udyam Registration (mandatory). Shop & Establishment Act licence. Constitution documents.
Financial Documents
12 months current-account bank statements (BoI preferred). 2 years ITR + audited financials + Form 26AS. 12 months GST returns. Existing loan schedules + latest statements.
BoI-Specific
BoI Star SME application form. CGTMSE application form (for collateral-free - filled by BoI). Existing BoI current-account statement if BoI customer. End-use undertaking for term loans. For Star MSE Empowerment: reserved-category certificate.
For BoI International Trade Finance
Import / Export orders. IEC (Import Export Code) certificate. Foreign currency account details. Overseas buyer / supplier information. Past 2 years trade turnover statement. For LC: application-cum-agreement + supporting invoices.
For LAP + Property-Backed
Property title chain (30-year traceable). Encumbrance Certificate. Property tax receipts. Approved building plan. BoI-empanelled valuer report.
Application Process

How to Apply for a Bank of India Business Loan

1

Product Match

MahadevX identifies best-fit BoI product (Star SME / Trade / MSE Empowerment).

2

Branch Assignment

Right BoI MSE branch based on location + business type.

3

Document Submission

Business + KYC + financial + collateral (if LAP) docs.

4

MSE Manager Review

Dedicated MSE manager assesses eligibility + CGTMSE fit.

5

Sanction Letter

Loan approved with rate + amount + tenure locked.

6

Disbursal

Amount credited to BoI current account after signing.

Comparison

Compare Bank of India with Other Business Loan Banks

Compare Bank of India head-to-head with SBI, PNB, BoB, Canara, Union, Indian, and others on rate, amount, tenure, and fees.

Compare Banks Side-by-Side
Pros & Cons

Bank of India Business Loan - Advantages & Trade-offs

Advantages

  • Competitive MSE rates (from 8.60% CGTMSE)
  • International Trade Finance (24 countries, 60+ offices)
  • BoI Star SME comprehensive product family
  • Star MSE Empowerment for women / SC / ST
  • Deep Maharashtra + Gujarat + Karnataka presence
  • Strong CGTMSE distribution (up to Rs 2.5 Cr)
  • BoI Star Digital app for smaller loans
  • Star Contractor for civil contractors

Trade-offs

  • Fewer branches than SBI / PNB / BoB (5,100 vs 8K+)
  • MSE amount cap (Rs 2.5 Cr) lower than SBI (Rs 5 Cr)
  • Slower processing (15-25 days) vs private banks
  • Weaker presence in East + North India
  • Digital MSE less mature than SBI YONO
  • Legal + valuation timeline for LAP cases
20 Questions

Bank of India Business Loan - Frequently Asked Questions

What is the Bank of India Business Loan interest rate in 2026?
Bank of India (BoI) Business Loan interest rates start from 9.35% p.a. for standard MSE segment and can go up to 14.80% p.a. depending on product, borrower profile, CIBIL score, and collateral. CGTMSE-covered MSE loans under BoI Star SME get preferential rates from 8.60%. BoI Star MSE Empowerment for women / SC / ST applicants gets 0.25%-0.50% concessional rate. Rates are indicative and depend on Udyam classification and application quality.
What is the maximum Bank of India Business Loan amount?
For MSE segment (CGTMSE-covered under BoI Star SME): up to Rs 2.5 crore. For MSME term loans: up to Rs 5 crore. For LAP-based (BoI Property Loan): up to Rs 5 crore. Working capital (CC + OD + Packing Credit): up to Rs 10 crore for larger SMEs. BoI Star SME product family covers most MSE needs. Corporate SME division handles up to Rs 25 crore+ for enterprises with established BoI banking history.
What is BoI Star SME?
BoI Star SME is Bank of India’s flagship SME + MSE loan product with priority sector focus. Key features: (1) Rates from 8.60% for CGTMSE-covered variants. (2) Up to Rs 2.5 crore fully collateral-free via CGTMSE. (3) Composite structure - working capital + term loan bundled. (4) Tenure up to 84 months for term portion. (5) Digital application via BoI Star Digital platform for smaller amounts. (6) Star SME Empowerment variant offers rate concessions for women / SC / ST entrepreneurs. Star SME family is available across BoI’s 5,100+ branches nationwide.
What are Bank of India's signature MSME loan products?
Signature products: (1) BoI Star SME - flagship SME + MSE product family. (2) BoI Star MSE Empowerment - dedicated women / SC / ST entrepreneur variant with rate concession. (3) BoI Star Vyapar Loan - working capital for retail traders + wholesalers. (4) BoI Star Contractor Loan - civil contractor financing. (5) BoI Mudra (Shishu / Kishore / Tarun). (6) BoI International Trade Finance - LC + BG + Packing Credit + Post-Shipment finance for exporters + importers. (7) Stand-Up India variant.
What is BoI International Trade Finance and who should use it?
BoI International Trade Finance is Bank of India’s dedicated trade finance vertical for MSE + SME exporters + importers. Bank of India operates in 24 countries with 60+ overseas offices - one of the largest international networks among Indian PSU banks. Products include: Letter of Credit (import / export), Bank Guarantee (bid / performance / advance payment), Packing Credit (pre-shipment finance from 8.75% p.a.), Post-shipment finance (bill discounting / foreign bill negotiation from 9.25%), Buyer’s / Supplier’s Credit for large imports. Ideal for MSEs with genuine cross-border trade exposure.
What is the eligibility for Bank of India Business Loan?
Business vintage: 2 years minimum for standard MSE, 3 years for larger term loans, 1 year for BoI Star SME smaller amounts. Annual turnover: Rs 40 lakh+ for Rs 10 lakh loan (4x rule). CIBIL: 680+ preferred, 700+ for best rates. Udyam Registration mandatory for MSE rates. Existing BoI current-account relationship (6+ months) improves processing speed. Mumbai + Maharashtra + Gujarat + Karnataka MSEs get BoI’s strongest branch support.
How is BoI different from SBI or PNB for MSE loans?
Bank of India stands out on two dimensions. First, international trade finance capabilities - BoI operates in 24 countries with 60+ overseas offices, offering direct trade finance for MSE exporters + importers - stronger than SBI or PNB for cross-border MSE needs (rivaled only by BoB internationally). Second, BoI Star SME product family is one of the most comprehensive PSU MSE product suites covering working capital + term loan + LAP + trade finance under single umbrella. Slightly higher rates than SBI (9.35% vs 9.15%) but competitive. Best for: MSE exporters + importers, Mumbai + Maharashtra MSEs.
How long does Bank of India Business Loan approval take?
BoI Star SME (standard MSE): 15-25 working days. BoI Star Vyapar (WC): 12-18 days. BoI Star Contractor: 20-30 days. BoI Star MSE Empowerment (women / SC / ST): 12-20 days with priority processing. International Trade Finance: 10-15 days for existing customers. BoI Mudra Shishu: 3-7 days. Kishore / Tarun: 10-15 days. LAP-based loans: 30-60 days including legal + valuation. CGTMSE-covered term loans: 20-30 days.
What documents does Bank of India require for business loan?
KYC: PAN + Aadhaar of proprietor / all partners / all directors. Business: PAN, GST + 12 months returns, Udyam Registration (mandatory), Shop & Establishment licence, constitution documents. Financials: 12 months current-account bank statements (BoI preferred), 2 years ITR + audited financials + Form 26AS. For BoI International Trade Finance: additional import / export orders + IEC code + Foreign Currency accounts. For LAP: 30-year property title chain + EC + tax receipts + BoI-empanelled valuer report.
Does Bank of India offer collateral-free business loans?
Yes - primarily through CGTMSE-covered BoI Star SME up to Rs 2.5 crore. Also through BoI Mudra (all three tiers up to Rs 20 lakh) and Stand-Up India (up to Rs 1 crore CGTMSE-covered portion). BoI Star MSE Empowerment for women / SC / ST gets enhanced CGTMSE coverage. Small-ticket unsecured (up to Rs 15 lakh) available under BoI Star Digital. CGTMSE route offers better rates and higher amounts than pure unsecured products.
What is the Bank of India processing fee?
BoI Star SME: 0.50% - 1.00% + GST. BoI Star Vyapar (WC): 0.35% - 1.00% + GST. BoI Star Contractor: 0.50% - 1.25% + GST. BoI Property Loan (LAP): 0.50% - 1.50% + GST. BoI Mudra Shishu: Nil. Kishore / Tarun: 0.50% + GST. BoI Star MSE Empowerment: 0.25% concessional. Stand-Up India: 0.25% concessional. International Trade Finance: BG commission 1%-2% p.a., LC commission 0.25%-0.75% per quarter. During BoI MSE campaigns fees often waived.
Can I apply for a Bank of India Business Loan online?
Yes. BoI Star Digital (BoI’s digital banking app) supports MSE loan applications for smaller amounts up to Rs 25 lakh. Full online journey: enter business details, upload documents, get eligibility check, book branch appointment for final processing. For larger loans, physical branch visits typical. Bank of India has invested in digital MSE origination through the Star SME digital platform. MahadevX manages the entire application process digitally on behalf of the borrower for faster turnaround.
Does Bank of India give preferential rates for women entrepreneurs?
Yes - through BoI Star MSE Empowerment with 0.25%-0.50% rate concession specifically for women / SC / ST entrepreneurs. Under BoI Stand-Up India, women entrepreneurs get greenfield loans up to Rs 1 crore. BoI Mudra has 0.25% preferential concession for women applicants. Additionally, women-led enterprises may qualify for BoI’s specialised women-entrepreneur processing at select MSE branches. Women-owned partnerships and companies (51%+ shareholding) qualify.
Can I get a Bank of India Business Loan with CIBIL below 680?
For CIBIL 650-680: possible via CGTMSE-covered BoI Star SME at slightly higher pricing (10.85%-13.5%). For CIBIL 600-650: only BoI Mudra Shishu (up to Rs 50,000) and Stand-Up India (greenfield) workable. Below 600: standard products rejected - alternatives via Mudra Shishu, Star MSE Empowerment (if women / SC / ST), or NBFC routing. BoI Star MSE Empowerment has slightly relaxed CIBIL norms for reserved-category applicants. MahadevX identifies best-fit BoI product based on your credit profile.
What is the Bank of India Business Loan tenure?
Working capital + CC + OD + Star Vyapar: 12 months, renewable annually. Term loans (BoI Star SME): 3-7 years. BoI Property Loan (LAP): up to 15 years (180 months). Machinery finance: up to 7 years. BoI Mudra: up to 5 years. Stand-Up India: up to 7 years with moratorium. BoI Star Contractor: aligned with contract completion + 12 months. Project term loans for large capex: up to 10 years including moratorium period.
Can I prepay my Bank of India Business Loan?
Yes. Floating-rate BoI business loans - nil prepayment / foreclosure charges (RBI mandated for floating-rate MSE loans). Fixed-rate loans: 2%-4% of prepaid principal, often reducing after 12-24 months. Nil prepayment on Mudra loans (Mudra guidelines). BoI Property Loan (LAP) - variable prepayment terms based on tenure completed. Talk to your BoI RM before executing prepayment for optimal outcome.
How does Bank of India finance civil contractors?
BoI Star Contractor Loan provides working capital + term financing for civil contractors, road contractors, water / sewer contractors, government-work contractors. Structure: (1) Contract-specific overdraft up to 50%-60% of running contract value. (2) Bank Guarantee (bid / performance / mobilisation) at 1%-2% p.a. commission. (3) Term loan for equipment financing under contract. Requires 3+ years contractor vintage + past contract completion track record. Bank of India’s Star Contractor product is used for contracts up to Rs 10 crore.
Does BoI have a stronger presence in Maharashtra or Gujarat?
Bank of India has particularly strong Maharashtra presence (HQ in Mumbai), with dense branch network in Pune, Nashik, Nagpur, and Aurangabad manufacturing belts. Gujarat presence is also solid but less than BoB (BoB HQ Vadodara). BoI is one of the top-3 PSU lenders to Maharashtra MSEs. Karnataka + Tamil Nadu + Andhra Pradesh presence is moderate. For Maharashtra MSEs seeking PSU rates + fast branch-level decisioning, BoI is often the best-match PSU.
What happens if I default on a Bank of India Business Loan?
BoI follows standard RBI NPA classification: 90-day overdue = NPA. SMA-0 / SMA-1 / SMA-2 warning stages before NPA classification. For CGTMSE-covered loans: BoI claims government guarantee - your obligation continues, borrower CIBIL takes major hit. For BoI Property Loan (LAP): SARFAESI Act invoked for property attachment. Personal guarantee (if signed) allows attachment of promoter assets. Talk to MahadevX RM at first sign of stress - BoI is flexible on restructuring, particularly for genuine MSE stress cases.
How does MahadevX help with Bank of India Business Loans?
MahadevX is an empanelled Bank of India DSA with 85+ loan facilitations per month via BoI. Value: (1) direct routing to the right BoI MSE branch (regional + Star SME specialist branches). (2) Pre-check Udyam + GST + CIBIL to maximise BoI Star SME approval odds. (3) Identify BoI Star MSE Empowerment eligibility for reserved-category applicants. (4) Handle CGTMSE application coordination. (5) Route exporters + importers to BoI International Trade Finance. (6) Follow-up on application status daily. Service is free - Bank of India pays us on disbursal.
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