IDFC Bank Business Loan

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
  • Before cheque encashment – Rs 10000
  • Post cheque encashment/RTGS cases – Rs 10000 + Interest from the date of disbursement
Phsyical repayment schedule ₹500

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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:

  1. 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.
  2. 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.
  3. 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)

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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.

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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:

  1. Visit the official website of IDFC FIRST Bank.
  2. Navigate to the business loans section or the loan application page.
  3. Fill out the online application form with accurate details, including personal and business information.
  4. Upload the required documents, such as KYC documents, business proof, and financial statements.
  5. Review the application and ensure all information is correct before submission.
  6. Submit the application online.
  7. 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 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.
    • If ‘No’ (If you do not have a business proof), choose the profession type and enter your 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.

Frequently Asked Questions

The rate of interest for IDFC Bank business loans starts from 14% p.a. and varies based on factors such as the loan amount, tenure, and credit profile.

The minimum and maximum loan amounts for IDFC Bank business loans are ₹10 lakhs to ₹1 Crore and is subject to the specific eligibility and credit assessment of the applicant.

The interest rates for IDFC Bank business loans starts from 14% p.a. and are determined based on various factors, including the applicant's creditworthiness and the prevailing market conditions.

Business loan applications can be submitted online through the official website of IDFC FIRST Bank or by visiting a branch in person.

Required documents typically include KYC documents, business proof, financial statements, and other relevant paperwork. Specific document requirements may vary based on the nature of the business and the loan program chosen.

Yes, prepayment is usually allowed, and prepayment charges may apply based on the terms and conditions of the loan agreement.

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