Business Loan

There are different schemes through which a collateral free business loan can be availed, including:

• Income scheme - Eligibility is based on the derived income & net profit of the business

• Banking scheme - Eligibility is based on the average bank balance

• GST returns scheme - Eligibility is based on the annual business turnover according to GST data

Yes, you can apply for a loan for business even if your business is in loss. Whether it is to pay the employees’ salaries, purchase new equipment or machinery, or invest in technology that can help recover losses and contribute to profitability, availing of a business loan can be a real saviour.

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

The documents required to apply for 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.

A term loan gives you a one-time amount of money that you pay back over a set tenure in regular instalments. The interest rate stays the same throughout, making it easier to plan and budget your repayments.

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.

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.

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 business loan interest rate increases, EMIs may alter.

You can calculate your potential EMI here.

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.  

The minimum business loan amount one can avail of ₹7 Lakhs and up to a maximum of ₹1 Crore.

IDFC FIRST Bank offers an unsecured business loan for a tenure from a minimum of 12 months up to a maximum of 48 months.

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.

It usually takes 15 to 20 working days for a business loan to be processed. Ideally, you should wait for this period after submitting a completed application, though the timeline may vary depending on the loan type, your profile, and the bank’s internal policies. However, if you meet all the eligibility criteria and provide the necessary business loan documents, you can avail yourself of a business loan instantly at IDFC First Bank.

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 business loan tenure are the variables that affect the EMI. If the interest rate increases, EMIs may alter.

You can calculate your potential EMI here.

A business loan interest rate is decided by the lender based on factors such as the borrower’s creditworthiness, the financial health of the business, the loan’s risk profile, the type of loan, loan amount, tenure, and more. At IDFC FIRST Bank, the interest rates and charges start from 12.99% p.a.* By simply entering the loan amount, tenure, and interest rate in our Business Loan EMI Calculator, you can find the total interest payable.

A business loan processing fee is a one-time charge that the borrower pays to complete the loan application process. It covers the expenses involved in verifying the loan application. At IDFC FIRST Bank, the processing fee is up to 3.5% of the business loan amount.

Click here to know the details of business loan fees & charges for loan offered by IDFC FIRST Bank.

Yes, stamp duty is mandatory for pre-approved business loans, and the charges may vary from one state to the other.

If you miss the due date, you’ll likely incur an EMI penalty fee, which can negatively impact your credit score. While a single missed EMI payment may not cause severe damage, repeated delays can harm your credit history and reduce your chances of securing new loans.

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 default.

You can request your lender to increase the business loan amount. You could also check if a top-up option is available on your existing loan or apply for a new loan with another financial institution. Higher loan amounts are usually offered to borrowers with a good credit score and strong financial history.

To foreclose your business loan, visit your nearest bank branch and request foreclosure by obtaining the total settlement amount. Make the full payment via cash, cheque, or demand draft. Once processed, the bank will close the loan and issue a No Objection Certificate (NOC) confirming there are no outstanding dues.

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

• Life Group Credit Protect - In the event of death, disability or illness of the insured member, this insurance will protect the insurer’s family from the burden of repaying the outstanding loan to the financial institution.

• Health Protect Plan - Covers medical expenses that arise due to illnesses

• 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