Urban Money

IDFC FIRST Bank Business Loan

IDFC FIRST Bank
4.5

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.

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IDFC FIRST Bank Business Loan Interest Rate

IDFC FIRST Bank

19%

2.49% - 5%

4.5

₹1L - ₹9L

Tenure(Up to 4 Years)

Details

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:

  • Manufacturers
  • Traders
  • Retailers
  • 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
  • LLPs

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:

Items Charges
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:

Particulars Details
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:

Bank IDFC HDFC SBI
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.

FAQs

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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