IDFC FIRST Bank Business Loan

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.