IDFC First Bank Business Loan
IDFC First Bank offers business loans to self-employed individuals, professionals, MSMEs, and healthcare businesses to meet their working capital needs. With collateral-free funding up to ₹1 Cr and quick loans up to ₹50 lacs based on current account statements or GST returns, the bank provides a fast and seamless process with minimal documentation. Interest rates start at 14%* p.a., and loan tenures range from 12 to 48 months. The Dropline Overdraft facility also allows flexible credit usage.
IDFC First Bank Business Loan Interest Rate, Fees & Other Charges
| Particulars | Charges |
|---|---|
| Interest Rate | Starting from 14%* p.a. |
| Loan Tenure | 12 Months – 48* Months |
| Lowest EMI per month | Starting from ₹2783* per Lakh for 48* Months |
| Processing Fees | Up to 3.5% of loan amount |
| Repayment Instrument Swap Charges | Nil |
| Duplicate No Objection Certificate / No Due Certificate | ₹500 (Request in addition to bank’s issued letter) |
| Other Statutory / Facilitation Charges | On actuals |
| Cancellation & Booking Charges | |
| – For cancellation after disbursal: | |
| • Before Cheque Encashment | ₹10,000 |
| • Post Cheque Encashment/RTGS Cases | ₹10,000 + Interest from disbursement date until receipt of cancellation request |
| Physical Repayment Schedule | ₹500 |
| Physical Statement of Loan | ₹500 |
| Cheque Swap Charges | Nil |
| Document Retrieval Charges | ₹500 per retrieval |
| Stamping Charges | As per actuals |
| Part Payment Charges | Part Payment is not allowed |
| Foreclosure Charges | 5% of principal outstanding |
| Annual Renewal Charge | 0.5% of the limit |
| Under-Utilisation Charges | If average quarterly utilization < 25%, then quarterly 0.25% on the difference between actual and expected (min ₹2,500) |
| Delay in Submission of Post Disbursal Document (Deferral) | 2% penal charges (monthly), max ₹25,000 |
| Penal Charges on Overdrawn Accounts | 2% per annum on the overdrawn amount |
| Late Payment/Penal Charges/Default Interest/Overdue (Per Month) | 2% of the unpaid EMI or ₹300, whichever is higher |
| EMI Pickup/Collection Charges | ₹500 |
| EMI Bounce Charges | ₹500 for each presentation dishonoured |
| Overdue Handling Charges (Delinquent Accounts) | |
| (i) Notice delivered at communication address | ₹750 (Excluding GST) |
| (ii) No notice delivered and paper publication required | ₹1,700 (Excluding GST) |
| (iii) Auction notice | ₹300 (Excluding GST) |
| (iv) Loan recall notice | ₹200 (Excluding GST) |
Table of Contents
Features & Benefits of Business Loan
- Collateral-Free Loans: No security or collateral required to avail this loan
- Loan Amount: Ranges from Rs.10 lakh up to Rs.1 Crore
- Loan Tenure: Flexible terms from 12 to 48 months.
- Attractive Interest Rates: Competitive and flexible rates.
- Easy Documentation: Minimal paperwork and quick processing.
- Purpose: Suitable for various business needs, including expansion and working capital.
Documents Required for Business Loan
The following is a list of the documents required for your business loan application:
KYC Documents:
- Passport-sized photograph (not older than 6 months)
- PAN card of both the business and the applicant.
- Identity Proof (Driving License/Passport/Voter’s ID Card/Aadhaar Card)
- Address Proof of the applicant (Driving License/Passport/Voter’s ID Card/Aadhaar Card)
- Address proof of the business
Bank Statements: Bank and GST statements (last 6 months)
Income Documents:
- ITR along with Computation of Income (last 2 years)
- Profit loss statements (last 2 years)
- Audited balance sheet
Proof of Business Continuation:
- Establishment Certificate
- Sales Tax Certificate
- ITR
- Trade License
Other Documents:
- Certified copy of Partnership deed or Sole Proprietorship Declaration
- Certified copy of MoA & AoA, and Board Resolution.
Also Read: Unsecured Business Loan
Eligibility Criteria
The eligibility requirements to avail IDFC First Bank Business Loans are:
- Applicant Type: MSMEs and non-individuals, including Private Ltd. companies, Partnership firms, LLPs, and Sole proprietors.
- Turnover: Minimum annual turnover of ₹1 crore.
- Business Vintage: At least 3 years of business operations.
- Age Limit: Applicants must be between 28 years (minimum) and 68 years (maximum at loan maturity).
- Profitability: The business must have a positive net worth and cash profit for the last 2 years.
Also Read: What is Secured Business Loan?
How to apply for a Business Loan in IDFC First Bank?
You can apply for a IDFC First Bank Business Loan, by either visiting their nearest branch or going to the website and applying for the loan online.
Online Application Process
- Online Application: Visit IDFC First Bank Website and instantly apply by clicking the “Apply Now” button for an instant business loan online.
- Enter your required details in the Application form and click on the submit button. An IDFC First Bank representative will contact you shortly.
Offline Application Process
Download the loan application form from the website, fill it out and submit it at your nearest IDFC First Bank branch for further processing.
Also Read: Small Business Loans for Women
IDFC First Bank Business Loan EMI Calculator
What are the Factors Responsible for business Loan
IDFC First Bank provides business loans at an interest rate starting from 14% per annum. Securing a business loan with favorable interest rates and a flexible repayment period is crucial for applicants. Given the typically substantial loan amounts associated with business loans, various factors come into play in determining the interest rates for IDFC First Bank Business Loans.
These are:
- The Credit Score of the business owner or the company.
- Category of the business
- Business Vintage
- Profit and Annual Turnover of the business
Frequently Asked Questions
Q. For how many months can I borrow a Business Loan from IDFC First Bank?
IDFC First Bank offers convenient repayment options of up to 48 months depending on the profile of the customer.
Q. Is there any security that I need to provide to get a Business Loan?
IDFC First Bank provides business loans as unsecured loans, so you don’t need to offer any security or collateral to qualify for the loan.
Q. What is the rate of interest for a business loan in IDFC First Bank?
IDFC First Bank offers business loans with interest rates starting from 14% per annum. The exact rate depends on various factors such as your credit profile and business performance.
Q. Is IDFC First Bank approved by RBI?
Yes, IDFC First Bank is an RBI-approved bank, fully regulated and compliant with all guidelines and regulations set by the Reserve Bank of India.
Q. What are the documents required for Business Loan?
To apply for an IDFC First Bank Business Loan, you’ll need:
- KYC Documents: Recent passport-sized photograph, PAN card, and valid identity and address proofs (Driving License/Passport/Voter’s ID/Aadhaar Card).
- Bank Statements: Last 6 months of bank and GST statements.
- Income Documents: Income Tax Returns (ITR), Profit & Loss Statements, Audited Balance Sheet.
- Proof of Business Continuation: Establishment Certificate, Sales Tax Certificate, Trade License.
- Other Documents: Certified copy of Partnership Deed or Sole Proprietorship Declaration, MoA & AoA, and Board Resolution.
Q. What is a Business Loan EMI calculator?
A Business Loan EMI calculator is an online tool that helps you estimate your monthly EMI (Equated Monthly Installment) based on the loan amount, interest rate, and repayment tenure. It provides an overview of how much you’ll need to pay each month, aiding in better financial planning.
Q. How much loan can I get for business from the bank?
The amount you can get for a business loan from the bank typically depends on your business needs, creditworthiness, and the bank’s lending criteria. For IDFC First Bank, business loans range from Rs.10 lakh Up to Rs.75 Lakhs.
Q. Which bank is best for a business loan?
The best bank for a business loan depends on your specific needs and preferences. Factors to consider include interest rates, loan amount, repayment terms, and additional benefits.
Some best Banks for Business Loan are:-
- SBI Bank
- HDFC Bank
- ICICI Bank
- Citibank
Q. Can I get a business loan of 50 lakhs from IDFC First Bank?
Yes, you can get a business loan of up to Rs. 50 lakh from IDFC First Bank, provided you meet the eligibility criteria and have a strong business case.
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