IDFC FIRST Bank offers business loans to help businesses meet their financial requirements. These loans can be used for various purposes such as working capital, expansion, purchasing equipment, and more. The bank provides customized loan solutions to suit the specific needs of different businesses.
Read till the end to get detailed information about IDFC FIRST Bank Business Loan, including its eligibility criteria, interest rates, and application process.
IDFC FIRST Bank Business Loan Highlights
When it comes to business loans, IDFC FIRST Bank stands out as a reliable option for businesses looking to secure financial support. With a diverse range of loan options, IDFC FIRST Bank aims to address the unique financial requirements of businesses, whether it’s for working capital, expansion, or other business needs. For a comprehensive understanding, here are the highlights of IDFC FIRST Bank business loan:
| Loan Amount | ₹10 Lakhs to ₹1 Crore |
| Loan Tenure | 12 – 48 months |
| Terms | Collateral-free business loans up to ₹1 Crore |
IDFC Bank Business Loan Interest Rates
IDFC FIRST Bank offers competitive interest rates on their business loans, making them an attractive option for businesses seeking financial assistance. These rates play a crucial role in determining the overall cost of borrowing and can significantly impact the affordability of the loan. Here is the overview of the interest rates and charges for IDFC FIRST Bank Business Loan:
| Interest rate | 14% – 25% p.a. |
| Processing Fee | Up to 3.50% of the loan amount. |
Note: Please note that the interest rates and processing fees are subject to change as per the market risks and the economic conditions. Please visit IDFC FIRST Bank’s Website for current updates.
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IDFC Bank Business Loan Fees & Charges
IDFC FIRST Bank may apply various fees and charges in addition to the interest rates for their business loans. Here is the detailed breakdown of other fees and charges applicable to for IDFC Business Loan:
IDFC Business Loan Charges:
| Items | Charges |
|---|---|
| Repayment instrument swap charges | ₹500 |
| Duplicate No Objection certificate / No Due Certificate | ₹500 |
| Other Statutory / Mortgage creation charges /Facilitation charges e.g. Stamp duty, MOD, MOE, etc | on actuals |
| Cancellation & booking charges | For cancellation after disbursal
|
| Phsyical repayment schedule | ₹500 |
| Physical statement of loan | ₹500 |
| Cheque swap charges | ₹500 |
| Document retrieval charges (per retrieval) | ₹500 |
| Stamping Charges | As per actuals |
| Part Payment charges | *Part Payment is not allowed |
Charges on account of delayed payments / defaults:
| Items | Charges |
|---|---|
| Late Payment/Penal Charges/Default Interest/Overdue(Per Month) | 2% of the unpaid EMI or ₹300 whichever is higher |
| EMI Pickup/Collection Charges | ₹350 |
| EMI bounce charges | ₹400 |
IDFC Bank Business Loans Eligibility Criteria
The business loan eligibility criteria outline the minimum requirements that entities need to meet in order to apply for a business loan from IDFC FIRST Bank.
- Eligible Entities: MSMEs and non-individual entities including private limited companies, partnership firms, LLPs, sole proprietors, and others.
- Minimum Turnover: The business should have a minimum annual turnover of ₹1 crore.
- Business Vintage: The entity should have a minimum business vintage of 3 years.
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Documents Required for IDFC FIRST Bank Business Loans
Specific business-related documents are necessary to verify the legitimacy and financial standing of the business. Here is what you need to submit:
- Photo Identity and Address Proof: As per RBI’s KYC guidelines, a valid photo identity and address proof are required. Additionally, ownership proof of the office or residence must be submitted.
- Business Proof: Documents such as Shop Act License, Memorandum and Articles of Association (MOA & AOA), GST registration certificate, Partnership Deed, and Income Tax Returns (ITR) are required as business proof.
- Additional Documents: Depending on the selected program, one of the following sets of additional documents is required:
- Latest 2 years ITR, net worth statement, and the latest 6 months’ bank statements.
- Latest 6 months’ bank statements, GST returns for the last 12 months, latest ITR, and computation.
- Latest 2 years ITR and computation, latest 2 years audited Profit and Loss (P&L) statement & Balance sheet, and the latest 6 months’ bank statements.
Types of Business Loans Offered By IDFC FIRST Bank
IDFC FIRST Bank business loans are structured to address different aspects of business financing, providing flexibility and support to businesses across different sectors and stages of growth. Here the various types of business loans offered by IDFC FIRST Bank:
| Loan Type | Purpose | Loan Amount |
|---|---|---|
| Unsecured Business Loan | Short-term business loans like working capital loans, inventory purchase, marketing expenses, or equipment upgrade without pledging any collateral. Ideal for established businesses with good credit history. | Up to ₹1 crore |
| Professional Loan | Collateral-free loans for Doctors, CAs, Engineers, Architects, Lawyers for clinic setup, equipment purchase, practice expansion, or working capital. | Up to ₹1 crore |
| Loan Against Property | Long-term loans for various needs like business expansion, renovation, debt consolidation loan, or capital expenditure by pledging commercial or residential property. | Up to ₹10 Cr for tenure of 25 years |
| Working Capital Loan | Meeting short-term cash flow requirements for expenses like inventory purchase, raw materials, day-to-day operations, or receivables. Typically granted as a percentage of annual turnover. | Not specified (Variable based on annual turnover) |
| Commercial Vehicle Loan | Financing the purchase of new or used commercial vehicles like trucks, buses, or tempos for business operations with flexible repayment options. | Loans with EMIs starting as low ₹2222* |
| FIRST STEP Micro Business Loan | Small loans for sole proprietors and partnership firms with flexible repayment options to support working capital, equipment purchase, inventory, or business expansion. | ₹25,000 – ₹30 Lakhs |
| Farmer Producer Organization Finance | Lending solutions tailored to meet the specific needs of Farmer Producer Organizations (FPOs) for various agricultural activities like crop cultivation, storage facilities, processing units, or equipment purchase. | Not specified (Varies based on FPO needs) |
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Features & Benefits of IDFC FIRST Bank Financing
IDFC FIRST Bank business loans offer a range of features and benefits to help businesses grow and succeed. These include:
- Competitive interest rates: IDFC FIRST Bank offers competitive interest rates starting st 14% p.a., making it an affordable option for businesses of all sizes.
- Flexible repayment options: IDFC FIRST Bank offers flexible repayment options up to 48 months to suit the needs of individual businesses, including monthly, quarterly, and annual payments.
- Quick and easy application process: IDFC FIRST Bank’s business loan application process is quick and easy, with minimal documentation required.
- Wide range of loan products: IDFC FIRST Bank offers a wide range of business loan products to meet the needs of different businesses, including loans for professionals, working capital loans, and equipment loans.
Comparision of IDFC FIRST Bank Business Loan With Other Lenders
Comparing the interest rates offered by various lenders helps you take an informed decision before availing a business loan.
| Top Bank/NBFCs | Business Loan Interest Rates |
|---|---|
| IDFC First Bank | 14% to 25% p.a. |
| PNB Bank | 9.40% p.a. to 14.40% p.a. |
| HDFC Bank | 10% – 22.50% p.a. |
| Axis Bank | 14.95% – 19.20% p.a. |
| Bajaj Finserv | 9.75% – 30% p.a. |
| Flexiloans | 1% per month onwards |
| HDB Financial Services Ltd. | Up to 36% p.a. |
| Indifi | 1.50% per month onwards |
| Mcapital | 2% per month onwards |
| NeoGrowth Finance | 19% – 24% p.a. |
| Tata Capital | 12% p.a. onwards |
| UGRO Capital | 9% – 36% p.a. |
Note: The interest rates mentioned are subject to change. Do visit the official website for updated rates.
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How to Apply for IDFC FIRST Bank Business Loan
To apply for IDFC FIRST Bank Business Loan online, follow the steps mentioned below:
- Visit the official website of IDFC FIRST Bank.
- Navigate to the business loans section or the loan application page.
- Fill out the online application form with accurate details, including personal and business information.
- Upload the required documents, such as KYC documents, business proof, and financial statements.
- Review the application and ensure all information is correct before submission.
- Submit the application online.
- Once the application is submitted, a representative from IDFC FIRST Bank may contact you for further processing and verification.
Steps to Apply for Business Loan on Buddy Loan
Follow the steps below to apply for a business loan through Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the business loan application page. Enter your mobile number and OTP.
- Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
- Step 4: Choose if you have a Business Proof (Yes/ No)
- If ‘Yes’ (If you have a business proof), enter your business and personal details.
Or - If ‘No’ (If you do not have a business proof), choose the profession type and enter your details.
- If ‘Yes’ (If you have a business proof), enter your business and personal details.
- Step 5: Provide income details and Click the ‘Submit’ button
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IDFC FIRST Bank Business Loan Customer Care Number
You can reach IDFC FIRST Bank Business Loan Customer Care through various channels:
- Toll-free Number: 1800 10 888 (Available 24/7)
- Whatsapp Banking Number: Give a call from your registered mobile number to 9555 555 555 to interact with any of the bank’s representatives.
- Mobile App: Download the app and log in for self service options.
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