Public Sector Bank (PSU)Term Loan (Capex / Expansion)Micro Enterprise (Investment ≤ ₹1 Cr)🛡️CGTMSE CoveredVerified: 2026-09-29

Bank of India Star Laghu Udyam Scheme

Primary Lending Institution:Bank of India

₹5 Lakh to ₹2 Crore MSME credit at 8.65% – 10.15% with Up to 7 years tenure.

Interest Rate8.65% – 10.15%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹5 Lakh to ₹2 CroreBased on turnover & project cost

Repayment TenureUp to 7 yearsWith moratorium where applicable

Collateral SecurityRequires enterprise to be located in designated semi-urban or rural block.

What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires enterprise to be located in designated semi-urban or rural block.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is Bank of India Star Laghu Udyam Scheme?

Targeted scheme for village, cottage, and tiny industries in semi-urban and rural areas.

Key Benefits & Features

Promotes rural industrialization; competitive interest rate; simplified documentation.

Government Subsidy & Credit Guarantee Coverage

CGTMSE / Bank Guarantee / Normal Security

Enterprise Eligibility Criteria

Rural and semi-urban micro-entrepreneurs.

Business Vintage1+ Years in Operation

Min. Annual Turnover₹5.0 Lakh

Processing Fee0.40% + GST

Prepayment TermsZero prepayment penalty on floating rate loans as per regulatory norms

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply online via business net banking or approach loan account manager.

🌐Path 2: Official FinTech / Govt Portal

Apply online at https://bankofindia.co.in/star-laghu-udyam with digital KYC and financial statements.

🏢Path 3: SME Banking Center Walk-In

Visit nearest MSME branch of the institution with business registration and bank statements.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, PAN, Aadhaar, Last 2 years ITR and financial statements, 12 months GST returns, 6 months bank statement.

Frequently Asked Questions

What is the maximum loan tenure and amount for Bank of India Star Laghu Udyam Scheme?

Borrowers can avail ₹5 Lakh to ₹2 Crore with a repayment tenure of Up to 7 years.

What are the processing charges and collateral terms for Bank of India Star Laghu Udyam Scheme?

The processing fee is 0.40% + GST. Collateral terms: Requires enterprise to be located in designated semi-urban or rural block.

What are the eligibility criteria for Bank of India Star Laghu Udyam Scheme?

Rural and semi-urban micro-entrepreneurs. Minimum business vintage required is 1 year(s).

How can an applicant apply for Bank of India Star Laghu Udyam Scheme?

Apply online at https://bankofindia.co.in/star-laghu-udyam or visit nearest branch with KYC, Udyam registration, and bank statements.