IDFC FIRST Bank Business Loan
IDFC Bank or Infrastructure Development Finance Company is one of the leading private banks that offers easy and unsecured business loans to help expand your business to different paradigms and improve productivity. The bank offers business loans for a maximum of 48 months with flexible tenure options. These loans are available to sole proprietors, partnership firms, privately held companies, shopkeepers and self employed persons.
Features & Benefits of IDFC Business Loan
Have a look below at the significant features and benefits of IDFC Business Loan:
- The loan tenure is of up to 48 months for IDFC Business.
- The collateral-free funding is of up to Rs. 1 crore.
- The immediate eligibility for a business loan is up to Rs. 50 Lakhs based on banking.
- Customers can avail themselves of easy balance transfer and top-up facility.
- Simple documentation is required.
- Customers are provided with door to door service.
- One can make the repayment in convenient equated monthly instalments.
Eligibility Criteria for IDFC Business Loan
Following are the entities for IDFC Business Loan eligibility:
- Sole Proprietorship Firms
- Partnership Firms
- Professionals like CA, Doctors, etc. or Self-employed Individuals
- Private Limited Companies
- Closely Held Limited Companies
Apart from that, MSMEs / Non-Individuals who can also apply for the loan include:
- Partnership Firms
- Private Ltd.
- Sole Proprietors
Further, each entity should meet the minimum requirements of:
- Minimum business vintage of 3 years
- Minimum turnover of Rs. 1 crore
IDFC Business Loan Fees and Charges
Visit the official website for the process of IDFC Business Loan Apply Online. Learn about business loan fees and charges in the below table:
|Processing Fee||Up to 3.5% of the loan amount|
|Repayment Instrument Swap Charges||Rs. 500|
|Duplicate No Objection Certificate / No Due Certificate||Rs. 500|
|Other Statutory / Mortgage Creation Charges / Facilitation Charges such as MOD, Stamp Duty or MOE||On actuals|
|Cancellation & Booking Charges||For cancellation after disbursal - • Rs 10000 - Before cheque encashment • Rs 10000 + Interest from the date of disbursement - Post cheque encashment/RTGS cases|
|Physical Repayment Schedule||Rs. 500|
|Physical Statement of Loan||Rs. 500|
|Cheque Swap Charges||Rs. 500|
|Document Retrieval Charges (per retrieval)||Rs. 500|
|Stamping Charges||As per actuals|
|Part Payment Charges||Part-payment is not allowed|
|Late Payment / Penal Charges / Default Interest / Overdue(Per Month)||2% of the EMI not paid or Rs. 300 (whichever is higher)|
|EMI Pickup or Collection Charges||Rs. 350|
|EMI Bounce Charges||Rs. 400|
IDFC Business Loan Interest Rates
Check the below table to learn about IDFC Business Loan interest rates and eligibility:
|Rate of Interest||16.00% - 24.00%|
|Amount for Loan||INR 1,00,000 - INR 9,00,000|
|Repayment Tenure||12 months to 48 months|
|Age Criteria||25 Years - 68 Years|
|Business Existence||Minimum 3 Years (Minimum 1 Year in the same organisation)|
|Business PAT or Profit after tax (after two years)||In positive|
|Processing Fee||2.49% of the loan amount|
|Foreclosure Fee||5% of the principal outstanding amount (after six months of disbursal)|
Factors Affecting IDFC Business Loan Interest Rates
Here are some of the significant factors that affect IDFC Business Loan Interest Rates eligibility:
- Model of Business
- Applicant (Business Provider or Manufacturer)
- Outlook of Industry or Economy
- Past Track Record
- Customer’s Debt Servicing Ability
- Financial Ratios
- Business Vintage
Documents Required for IDFC Business Loan
Following essential documents are required to apply for an IDFC Business Loan:
- Identity Proof (Voter ID / Driving License / Aadhaar Card / Passport)
- PAN Card
- Address Proof (Voter ID / Driving License / Passport / Electricity Bill / Telephone Bill / Bank Statement / Registered Lease Deed or Sale Agreement)
- Ownership Proof of Residence or Office
- Proof of Business Continuity - Any 5-Year Old Document (Sales Tax Challans / Bank Statement / Shops & Est. Certificate / IT Returns / Certificate of Incorporation or Partnership Deed)
- Passport Size Photographs (of Applicants as well as Co-Applicants)
- Certificate Letter on Business Letterhead stating final use of the business loan funds
How does the EMI Calculation Work for IDFC Business Loans?
The EMI or Equated Monthly Installment Equator Calculator helps compute the instalment value per month. The EMI Calculator for IDFC Business Loan calculates monthly EMIs easy and quick. We need to put the details such as the loan amount, rate of interest and tenure in the calculator to get the results.
See the below example that comprises of the Business Loan’s EMIs and Interests:
|Loan Amount||Interest Rate||Tenure||Monthy Instalment||Total Interest Amount||Total Amount|
|Rs. 8,00,000||16%||1||Rs. 72,585||Rs. 71,016||Rs. 8,71,016|
|Rs. 8,00,000||16%||2||Rs. 39,170||Rs. 1,40,092||Rs. 9,40,092|
|Rs. 8,00,000||16%||3||Rs. 28,126||Rs. 2,12,523||Rs. 10,12,523|
|Rs. 8,00,000||16%||4||Rs. 22,672||Rs. 2,88,267||Rs. 10,88,267|
How does IDFC Compare with Other Lenders?
You can avail of several benefits while applying for a business loan from IDFC bank. Check below the comparison of IDFC Business Loan with HDFC Business Loan and SBI Business Loan:
|Interest Rate||19.00% - 0.00%||11.90% - 21.35%||11.20% - 16.30%|
|Processing Fee||2.00%||Rs. 499||2.00% to 3.00%|
|Loan Amount||Rs. 1 Lakh to Rs. 9 Lakh||Rs. 50,000 to Rs. 50 Lakh||Rs. 5 Lakh to Rs. 100 Crore|
|Loan Tenure||12 to 48 Months||12 to 48 Months||12 to 48 Months|
|Lowest EMI Per Lakh||Rs. 2,990||Rs. 2,628||Rs. 2,594|
|Part Payment Charges||Not Allowed||Not Allowed||Allowed after 0 months at 3%|
|Foreclosure Charges||Allowed after 6 months at 4-5%||Allowed after 12 months at 2-4%||Allowed after 6 months at 3%|
|Eligible Age||25-65 Years||21-65 Years||21-65 Years|
|Minimum Years Required in Business||36 Months||36 Months||36 Months|
|Minimum Turnover Required||Rs. 12 Lakh||Rs. 1 Crore||Rs. 20 Lakh|
IDFC Business Loan Customer Care Number
The customer care number to apply for IDFC Business Loan is 1860 500 9900. Call anytime to learn about IDFC Business Loan Requirements.
From refinancing to reducing your interest, we have the answers right here.
What is loan foreclosure?
Loan foreclosure is the amount of full repayment out of the remaining amount of loan you need to pay in a single payment rather than paying it in multi EMIs.
Who can apply for an IDFC Business Loan?
The entities like partnership firms, sole proprietors, privately held companies, self-employed persons and shopkeepers can apply for an IDFC Business Loan.
Does IDFC Bank provide business loans at the best rate?
Yes. IDFC Bank provides business loans at an interest rate of 16%.
What are the KYC documents I will have to submit to apply for a business loan in IDFC Bank?
To apply for a business loan in IDFC Bank, you need to provide at least one Officially Valid Document (Voter ID / Aadhaar / Passport / Driving license/) and PAN.
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