mob-head
Get App
close img

Find all the help you need

Download our app and find help on your fingertips

apple-logo playstore-logo
Download our app
Help Center

Support topics, Contact us, FAQs and more

Explore Personal Banking
Accounts
Deposits
Loans
Wealth & Insure
Payments
Cards
Blogs
What's special about us
Customer Support
Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
GIFT City
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore GIFT City
About Us
Investors
Careers
IDFC FIRST Academy
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now
Apply Now

What is Business Loan Rate of Interest?

A business loan interest rate is the percentage charged on the loan amount by the lender, representing the cost of borrowing. It directly influences your total loan repayment and affects your business’s financial planning. Higher rates mean greater EMIs and overall liability. You can use business loan EMI calculator to calculate monthly Business Loan EMIs.

IDFC FIRST Bank offers competitive interest rates for business loans with transparent terms and no hidden charges. With attractive, customised rates based on your credit profile, the bank supports your business ambitions while keeping borrowing costs manageable.

Apply now

Enjoy low business loan interest rates starting at just 12.99% p.a

At IDFC FIRST Bank, you can get one of the most attractive business loan interest rates available in the market. The following table shows the rate of interest for unsecured business loans.


Business Loan Interest Rates August 2025
Business Loan Min ROI (Per Annum)
12.99%


Our interest rates are calculated on a monthly reducing balance basis, which ensures that you pay interest only on the outstanding principal amount – not the full loan. This structure reduces your interest burden over time and brings overall cost-effectiveness.

IDFC FIRST Bank regularly updates its business loan rate offerings in line with market trends and your financial profile, helping you get the best available rate at the time of submitting the loan application. Whether you're applying for an MSME loan or an unsecured corporate loan, we provide tailored pricing to support your goals.

Factors that Affect Business Loan Interest Rates

Understanding the factors that influence the business loan interest rate can help you negotiate better terms and secure more favourable offers.

Revenue

Revenue

Higher and consistent revenue gives banks assurance of timely repayment. A growing income stream improves your chances of securing a lower MSME loan interest rate or corporate loan rate.

Existing loans

Existing loans

Multiple ongoing loans increase your debt exposure, affecting your eligibility and resulting in a higher business loan rate of interest. Less outstanding debt reflects better financial health.

Relationship with the bank

Relationship with the bank

A long-term association with IDFC FIRST Bank, supported by multiple account holdings, demonstrates loyalty and can positively influence your commercial loan interest rates.

Business reputation

Business reputation

Lenders evaluate your brand’s credibility before offering a loan. A well-established business with positive customer reviews indicates trust and reduces perceived risk, resulting in better interest terms.

Repayment history

Repayment history

If you’ve consistently paid EMIs or cleared credit dues on time, your strong repayment history positions you for favourable business loan interest rates. It boosts your creditworthiness and shows you’re a reliable borrower.
Maintain a clean financial record and foster a strong banking relationship to increase your chances of receiving the best business loan rate.

Business loan Fees & Charges

IDFC FIRST Bank offers transparent and affordable fees and charges on business loans. Here’s a table showing various charges related to our business loans -

Type of Charge Fee/Charge
Processing fee Up to 3.5% of loan amount
Late Payment Charges 2% of unpaid EMI or ₹300 (whichever is higher) per month
EMI Pickup/Collection Charges ₹500
EMI Bounce Charges 7.5% of EMI (Min ₹400, Max ₹1000, excl. GST)
Overdue Handling Charges At actuals + taxes
Technical Bounce Charges Same as EMI bounce charges
Repayment Instrument Swap Charges NIL
Duplicate NOC/NDC ₹500
Statutory/Facilitation Charges On actuals
Cancellation & Booking Charges ₹10,000 + interest (conditions apply)

FAQs for Business Loans Interest Rate

What is the current business loan interest rate at IDFC FIRST Bank?

IDFC FIRST Bank offers business loan interest rates starting at 12.99% p.a. The final rate depends on your credit profile, loan amount, and tenure. It is calculated on a monthly reducing basis, ensuring fair and transparent repayment.

What affects the interest rate for a business loan?

Multiple factors influence your business loan interest rate including business revenue, credit score, repayment history, existing loan obligations, and your relationship with the bank.

How is a business loan interest rate calculated?

IDFC FIRST Bank uses the monthly reducing balance method. Interest is calculated on the outstanding loan amount after each EMI payment, which lowers the interest component as the loan progresses.

Are interest rates different for secured and unsecured corporate loans?

Yes, unsecured corporate loans usually attract slightly higher interest rates due to the increased risk, while secured loans may offer lower corporate loan interest rates based on asset backing.

How can I negotiate a better business loan interest rate?

You can improve your chances of securing a lower business loan rate by maintaining a healthy credit score, showing consistent income, limiting outstanding debt, and leveraging an existing relationship with IDFC FIRST Bank.

Do MSMEs get special business loan interest rates?

Yes, MSMEs may be eligible for preferential MSME loan interest rates depending on their financials, turnover, and creditworthiness.

Are there any hidden charges apart from the business loan interest?

No. IDFC FIRST Bank maintains transparency in pricing. All charges, including processing fees and penalties, are clearly listed on the website and during the application process.

Is there a difference between commercial loan interest rates and personal loan rates?

Yes, commercial loan interest rates are structured based on business cash flows and risk profile, which differs from personal loan criteria. Business loans may offer higher flexibility in repayment and usage.

More FAQs

Our App Ratings

1.74 million+

Happy users

4.9

Play Store

4.8

App Store

Business Loan Blogs

Business loan EMI calculator

How to Use a Business Loan EMI Calculator Efficiently

11 Aug 2025 | 5 mins read
How to check your business loan eligibility

Why is it Important to Check & Know Your Business Loan Eligibility?

11 Aug 2025 | 5 mins read
how to easily apply for a business loan

6 Mistakes to Avoid While Applying for a Business Loan

11 Aug 2025 | 5 mins read
How to get Business Loan

Guide to Business Loan Types, Benefits & How to Apply

10 Nov 2021 | 5 mins read
10 things about business loan

What Are the Benefits of Applying for Business Loan Online

11 Aug 2025 | 5 mins read
Small businesses

Simple Reasons to Apply for Unsecured Business Loans

11 Aug 2025 | 5 mins read
get-your-business-loan-approval-with-these-tips-from-the-experts

Expert tips for Improving Your Business Loan Approval Chances

11 Aug 2025 | 5 mins read
What is an MSME loan

MSME vs Business Loan: What You Need to Know

06 Sep 2023 | 5 mins read
small business loans

Business Loan vs Microfinance: What’s the Difference?

01 Sep 2022 | 5 mins read
the ultimate professional loan

Benefits of Professional Loan & Things to Consider When Applying Online

11 Aug 2025 | 5 mins read
Types of Working Capital Loans

Guide to Types & Benefits of Working Capital Loans

25 May 2023 | 5 mins read
Know more knowMoreImg
Saving Account Content
Personal Loan Content
Home Loan Content
Credit Card Content
Mutual Fund Content
Fixed Deposit Content