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Business Loan

Business loans provide businesses with the necessary funds to meet their operational and growth needs. Whether you're expanding your business operations, purchasing new equipment or managing cash flow, it's a flexible financing option that can be used in a variety of ways. Business loans can assist you in achieving your goals and driving your business forward, whether you are a small startup or an established enterprise.Read More

Read Less

Loan Amount Loan Tenure Interest Rates
₹7 Lakhs to ₹1 Crore 12 Months to 48 Months Starting at 14%


How can a Business Loan help you?

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EXPAND YOUR BUSINESS
You can use a business loan to fuel your growth, whether you're opening a new location, hiring more employees, or investing in new technology.

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IMPROVE YOUR CASH FLOW
Cash flow problems can impede your business' operations. A business loan can help bridge gaps in your cash flow, safeguarding your ability to meet your day-to-day expenses.

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PURCHASE EQUIPMENT
Need new machinery or equipment to improve your productivity or offer new services? A business loan can help you finance these purchases and enhance your business' capabilities.

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MANAGE INVENTORY
Having sufficient inventory is crucial for meeting customer demand. Business loans can assist you with financing your inventory purchases, so that you have enough stock to meet customer demand.

Key Features

Collateral-Free Funding

Collateral-free
funding up to ₹1 crore

Flexibility to choose between Term Loan and Dropline Overdraft

Flexibility to choose
between Term Loan and Dropline Overdraft

Quick eligibility up to ₹50 lakhs

Quick eligibility
up to ₹50 lakhs basis banking

Extended Calendar Tenure

Loan tenure
up to 48 months

CALCULATOR

Business Loan EMI Calculator

Choose the Amount

1L 50L

Choose the Period

1 Year 30 Year

Choose the Interest Rate

8 % 15 %

You will pay an EMI of only monthly

Apply Now

The amount might change as per actual details

Rates & Charges

Rates & Charges

TYPE OF FEE CHARGES
Rate of Interest Starting at 14%*
Processing fee Up to 3.5% of the loan amount
Stamp charges Applicable as per state
Other charges View Other fees & Charges

*At IDFC FIRST Bank, we provide competitive interest rates based on the customer’s credit profile. Click here to understand the factors that impact your rate of interest.

Dropline Overdraft

A Dropline Overdraft Loan is a versatile financial product that allows you to access a pre-approved line of credit whenever you need it. This facility allows you to utilize amount up to an agreed limit. The withdrawal limit reduces every month till the end of the loan tenure. The interest is levied only on the utilized amount and not on the total amount borrowed. The amount can be deposited to the account anytime to reduce the outstanding balance.

Avail your Business Loan as a Dropline Overdraft Facility and enjoy amazing benefits like interest only on the amount utilized, instant access to funds, collateral free funding up to 1 Crore, and much more.

Key Features:

1.       24/7 instant access to funds

2.       Continuous access to a predetermined line of credit

3.       Flexibility to repay the borrowed amount

4.       Pay interest only on the amount utilized

5.       Financial security against unexpected financial emergencies

Savings Account

ELIGIBILITY

Who can apply?

MSMEs/ non-Individuals such as:

  • Private Ltd.
  • Partnership firms
  • LLPs
  • Sole proprietors etc.,

Each meeting the minimum requirements as below:

  • Minimum turnover of ₹1 crore
  • Minimum business vintage of 3 years

Age Limit

  • Minimum - 28 years
  • Maximum - 68 years (at the time of loan maturity)

Profitability

  • Positive net worth and cash profit in last 2 years

Documentation

  • Photo identity and Address proof : As per RBI defined KYC guidelines. Ownership proof of office or residence
  • Business Proof : Shop Act License/MOA & AOA/GST registration/ITR, Partnership Deed

Any one of the additional documents basis selected program

  • Basis Banking - Latest 2 years ITR and Net worth statement, Latest 6 months Bank statements
  • Or Basis GST - Latest 6 months banking, GST returns for the last 12 months, Latest ITR and computation
  • Or Basis income - Latest 2 years ITR & computation, Latest 2 years audited PnL & Balance sheet, Latest 6 months Bank statements

Business loan eligibility

FREQUENTLY ASKED QUESTIONS

What is a Business Loan?

A business loan is a collateral-free loan offered to a self-employed individual or to business entities.

What can a Business loan be used for?

You can use a Business loan to upgrade or purchase equipment, cover employee salaries, rent or to expand your business.

What is the range of loan amounts, minimum and maximum, that I can apply for?

The minimum loan amount one can avail of is ₹10 Lakhs and up to a maximum of ₹1 Crore.

What is the maximum loan tenure for an IDFC FIRST Bank Business loan?

We are currently offering our customers a Business Loan tenure from a minimum of 12 months up to a maximum of 48 months.

What are the benefits of availing a Business Loan from IDFC FIRST Bank?

We have one of the best Business Loan solutions. Some of our major features are:

• Collateral-free loans up to Rs.1 Crore at attractive interest rates

• Flexible tenure up to 48 months

• Unique balance transfer and additional top-up facilities

• Higher loan facility basis audited financials

• Quick loan based on bank statements or basis GST returns

• Superior customer experience with easy documentation and a hassle-free digitized processes

What are the different types of loans offered under Business Loan?

A Business Loan can be availed in the form of a term loan or a dropline overdraft facility.

How does a term loan facility work?

Term loan is a type of credit facility that provides borrowers with a lump sum of cash upfront in exchange for specific borrowing terms.

Borrowers agree to pay their lenders a fixed amount over a certain repayment schedule with either a fixed or floating interest rate.

What is a Dropline Overdraft facility and how does it work?

Dropline Overdraft is another type of credit facility that allows you to withdraw funds from pre-approved credit limit as and when required.

With the dropline feature, the Overdraft limit gradually decreases over time until it reaches zero. You will be charged interest only on the overdraft amount utilized.

What are the different eligibility assessment criteria for availing a Business Loan?

The eligibility assessment criteria for availing a Business Loan from IDFC FIRST Bank include factors such as:

• A business continuity of minimum 3 years

• Applicant to be a minimum of 28 years of age and a maximum of 68 years of age at the time of loan maturity.

If both these conditions are met, applicants will further be assessed basis:

• Income - Eligibility calculation basis the derived income & net profit of the business

• Banking -  Eligibility calculation basis the average bank balance

• GST returns - Eligibility calculation basis the annual business turnover

How do I apply for IDFC FIRST Bank Business Loan?

You can apply for IDFC FIRST Bank Business Loan via –

Our Website -  https://www.idfcfirstbank.com/business-banking/loans

Our Mobile App - https://my.idfcfirstbank.com/digital-banking-app

Our Branches - https://nearme.idfcfirstbank.com/

Our Loan Centres - https://www.idfcfirstbank.com/support/asset-branch

Or you can call us on 1800 10 888 and speak to our representative

What is the loan application process?

Here's a step by step break down of our Business Loan application process

• Submission of the Application Form

• Submission of required documents

• Document verification (mandatory verifications instituted to ensure validation of documents provided)

• Personal Discussion (for assessment & to understand the customer profile from a risk perspective)

• Loan sanction

• Loan Disbursement

Do I require any security or guarantor to avail this loan?

No, you don’t need any security or guarantor for this loan, however, a co-applicant is mandatory.

Which KYC documents will be required to apply for IDFC FIRST Bank Business Loan?

The documents required to apply for IDFC FIRST Bank Business Loan are:

- PAN Card

- Any one of the officially valid documents like Aadhar/Passport/Driving license/ Voter ID with your correct name, date of birth, current address.

In case you don't have a PAN Card, you can fill and submit Form 60 for verification.

How long does it take to disburse an IDFC FIRST Bank Business Loan?

IDFC FIRST Bank Business loans are disbursed within 6-7 working days once the required documents have been submitted to the designated relationship manager.

Does IDFC FIRST Bank offer insurance for my Business Loan in case of an unforeseen event?

At IDFC FIRST Bank, we aim to safeguard our customer's interest by offering the below insurance covers:

• Life Group Credit Protect - In event of death, disability or illness of the insured member, it will protect their families from the burden of repaying the outstanding loan to the financial institution.

• Health Protect plans - Covers medical expenses that arise due to an illness.

• Accident protect plan -  Covers medical expenses pertaining to injuries like a broken limb, loss of a limb, burns, lacerations, or paralysis.

• EMI Protect Plan - Protection plan that offers insurance coverage on EMI in case you are unable to pay an EMI

How will my EMI be calculated?

The principal amount and the interest rate applied to the principal make up your EMI. The amount you borrow, the rate of interest charged, and the loan tenure are the variables that affect the EMI. If the interest rate increases, EMIs may alter.

You can calculate your potential EMI here.

What are the various charges incurred?

Click on the link to know more about the charges.

When can I get a top up on my existing loan?

You will be eligible for a top up on your existing loan only once you have completed regular repayment of your EMIs for 12 months without any date default.

How is Dropline Overdraft different from an overdraft facility?

Unlike a standard overdraft where limit remains constant, a dropline overdraft is a revolving credit line wherein limit decreases at the end of every month. The interest needs to be paid only on the amount utilized.

How is the interest charged on the borrowed amount for a Dropline Overdraft facility?

The interest is levied only on the utilized amount and not on the total amount borrowed. Interest is calculated daily and levied at the end of each month.

How does the limit drop for a Dropline Overdraft facility?

The withdrawal limit reduces every month till the end of the loan tenure. The limit can be renewed every year based on the repayment behaviour.

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