IDBI Bank MSME Loan
About This Loan
IDBI Bank provides tailored MSME loan solutions including project finance, working capital, equipment finance, and micro loans. Known for supporting manufacturing MSMEs with specialised technical evaluation capabilities inherited from its development banking history (IDBI was originally established as a development financial institution). IDBI is particularly strong for project finance where new manufacturing units require technical due diligence of plant layout, production capacity, and raw material sourcing. Loans up to 50 lakh rupees are supported with CGTMSE cover reducing collateral requirements. IDBI MSME loans suit growing manufacturing businesses needing structured capital for plant and machinery investments with medium-term repayment horizons.
Maximum Amount
₹50,00,000
Interest Rate
10% – 14% p.a.
Tenure
Up to 7 years (term), 12 months renewable (working capital)
Collateral
CGTMSE cover for collateral-free loans up to ₹5 crore
Processing Fee
0.50% – 1% of loan amount
Eligibility
Registered MSME; viable project with minimum promoter contribution of 10-25%; satisfactory CIBIL score.
Application Process
- 1Apply online at idbibank.in or visit branch
- 2Submit loan application with project details
- 3IDBI conducts technical and financial appraisal
- 4Loan sanctioned and disbursed in stages as per project milestones
Documents Required
- Loan application form
- KYC documents
- Udyam Registration certificate
- Detailed Project Report
- Proforma invoices for machinery/equipment
- Financial statements and ITR (existing units)
- Bank statements (12 months)
Official Links
Related Government Schemes
Disclaimer
This information is sourced from publicly available bank and financial institution websites. EduMetrics is not a financial advisor or lending institution and does not guarantee the accuracy of interest rates, eligibility criteria, or loan terms. Please verify all details with the respective bank before applying.