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Business Loan Interest Rates

Businesses backed by reliable funding sources can achieve amazing things. Regardless of where you are in the life span of your business, IDFC FIRST Bank business loans make it convenient to finance business needs. Whether you are a start-up or a seasoned entrepreneur looking to scale your business, IDFC FIRST Bank business loans can help.

We offer the industry's competitive business loan interest rates to make your financing affordable, so you can focus on achieving your business goals faster than your competition.

IDFC FIRST Bank business loans are designed to help you meet a variety of business requirements, including market expansion, equipment purchases, facility upgrades, and working capital requirements. With us, you can experience a convenient application process, personalised eligibility criteria, and preferential business loan interest rates.Read More

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Factors that Affect Business Loan Interest Rates

Business Reputation

  • A strong brand reputation can signal financial stability and trustworthiness to lenders.
  • A history of positive customer reviews and feedback can enhance your business' reputation and make it more attractive to lenders.

Revenue

  • Higher and more consistent revenue generally indicates lower risk to the lender, which can lead to more favourable loan terms.
  • A growing revenue stream demonstrates your business's potential for future growth and financial stability.

Existing Loans

  • Multiple existing loans can increase your debt burden making you a riskier borrower.
  • The terms and conditions of your existing loans can also impact your eligibility for future loans and the interest rates you'll receive.

Relationship with the Bank

  • A long-standing relationship with the bank can demonstrate your commitment and trustworthiness.
  • Holding multiple bank accounts (e.g., Checking, Savings, Investment) can strengthen your chances of securing favourable loan terms.

Repayment History

  • A clean repayment history on previous loans shows lenders that you are a reliable borrower.
  • Making timely payments can boost your credit score and make you more appealing to lenders.

Benefits of IDFC FIRST Bank Business Loans

FREQUENTLY ASKED QUESTIONS

What is the interest rate on a business loan?

IDFC FIRST bank offers affordable and competitive interest rates. However, the final interest rates may vary depending on various factors after loan approval.

How much is the business loan processing fee?

A processing fee is levied on business loan applications, which is adjusted against the overall loan cost. IDFC FIRST Bank levies a processing fee up to 3.5% of the principal loan amount.

What is the foreclosure charge for business loans?

5% of principal outstanding is going to be the foreclosure charge.

What are the minimum and maximum business loan tenures given?

IDFC FIRST Bank offers flexible loan tenures between 12 and 48 months to repay your business loans.

Is a business loan an unsecured loan?

Yes, business loans from IDFC FIRST Bank are collateral-free for amounts up to ₹1 crore.

Is the business loan interest rate fixed or floating?

The interest rates on business loans are fixed.

For what purposes can I avail of a business loan, and how is the interest rate determined?

Business loans are designed to meet the financial requirements of a business. The funds can be used for various purposes, such as operational expenses, business expansion, and purchase of instruments.

Business loan interest rates are calculated based on several factors, of which the principal loan amount and tenure play a major role. 

What factors determine the business loan’s rate of interest?

Some of the key factors that determine the business loan interest rate, include:

  • Revenue of the business
  • Repayment record
  • Business’ reputation
  • Relationship with the bank
  • Running business loans
  • Cash flow and balance sheet details

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