IDFC First Bank Business Loans

Introduction

IDFC First Bank offers business loans with interest rates starting from 14.50% p.a., providing flexible loan tenures of up to 48 months and loan amounts of up to Rs. 50 lakh. These loans are designed to cater to various business needs, including working capital, expansion, equipment purchase, or managing operational expenses.

IDFC First Bank business loans come with minimal documentation, quick approval, and no collateral requirement, making them ideal for small and medium-sized enterprises (SMEs). The bank also offers flexible repayment options, ensuring businesses can manage their cash flow effectively while focusing on growth and development.

Highlights of IDFC First Bank Business Loan

Feature	Details
Interest Rate	Starting from 12.0% p.a.
Loan Amount (LTV Ratio)	Up to 80% of property value or revenue
Loan Tenure	Up to 7 years
Processing Charges	Up to 2% of the loan amount
Minimum Monthly Income	₹50,000, varies by location and loan type

Types of Business Loans

Loan Type	Purpose	LTV Ratio	Tenure	Special Features	Interest Rate	Eligibility Criteria	Collateral Required
Business Term Loan	Business expansion, capital needs	Up to 80%	Up to 7 years	Flexible repayment options	12.0% – 14.5% p.a.	Min. 3 years in operation	Yes
Working Capital Loan	Short-term operational expenses	Up to 70%	12 months, renewable	Overdraft, quick renewals	12.5% – 15.0% p.a.	Good credit score	No
Equipment Financing	Purchase of machinery, equipment	Up to 75%	3 – 7 years	Customizable loan structure	12.25% – 14.75% p.a.	Proven business track record	Yes

Eligibility Criteria

Criteria	Details
Minimum Business Operation Period	3 years
Positive Cash Profits	Last 2 years
Required Documentation	IT returns, balance sheets, bank statements
Other Criteria	Good credit score, minimum turnover of ₹50 lakhs

Loan Features & Benefits

• Range of loan amounts: From ₹5 lakhs up to ₹15 crores.
• Collateral requirements: Depending on the loan type, collateral may or may not be required.
• Minimal documentation: Streamlined process with minimal paperwork.
• Quick approval: Loans are approved and disbursed within a few working days.
• Flexible repayment options: Choose a repayment plan that aligns with your business cash flow.

Fees and Charges

Requirement	Salaried	Self-Employed
Processing Fee	₹10,000 to ₹25,000	₹15,000 to ₹30,000
Prepayment Charges	Up to 3% of principal	Up to 3% of principal
Late Payment Fee	₹500 to ₹1,000 per instance	₹750 to ₹1,250 per instance
Documentation Charges	As applicable	As applicable
Bounce Charges	₹750 per instance	₹1,000 per instance

Required Documents

• Identity Proof: PAN Card, Aadhaar.
• Address Proof: Passport, Utility Bill.
• Business Continuity Proof: GST Registration, Business License.
• Financial Documents: IT returns, bank statements for the last 2 years, audited balance sheets.

EMI Calculator

Use IDFC First Bank’s online EMI calculator to estimate your monthly payments. Simply enter the loan amount, interest rate, and tenure to calculate your EMI instantly.

Application Process

• Steps to Apply: You can apply online through the IDFC First Bank website or visit a branch for offline applications.
• Expected Timeline: Loan approvals typically take 4-8 working days after submitting all required documents.
• Customer Support: Dedicated support teams are available to assist you throughout the application process and provide updates on your loan status.

Comparison with Other Banks/NBFCs

Bank	Interest Rate	Processing Fees	Loan Tenure	Prepayment Charges	Collateral Requirement	Approval Time	Special Features
SBI Bank	8.5% p.a. onwards	0.35% of the loan amount	Up to 15 years	3% of the principal	Required for large amounts	7-10 days	Easy overdraft facility
HDFC Bank	8.7% p.a. onwards	Up to 2% of the loan amount	Up to 10 years	4% of the principal	Usually required	5-7 days	Pre-approved offers for customers
LIC Bank	8.50% – 10.75% p.a.	1% of the loan amount	Up to 20 years	2% of the principal	Required	10-12 days	Flexible repayment options
ICICI Bank	8.85% p.a. onwards	0.5% – 1% of the loan amount	Up to 12 years	3% of the principal	Required	5-7 days	Customizable loan structure
Kotak Mahindra Bank	8.70% p.a. onwards	Up to 1% of the loan amount	Up to 25 years	Up to 5% of the principal	Required	7-10 days	Doorstep service
Punjab National Bank	8.40% – 12.10% p.a.	0.5% – 1% of the loan amount	Up to 15 years	2% of the principal	Required	8-10 days	Quick processing time
Bank Of Baroda	8.40% – 10.90% p.a.	1% of the loan amount	Up to 20 years	4% of the principal	Required	7-10 days	Special rates for SMEs
Bajaj Housing Finance	8.50% p.a. onwards	Up to 1.5% of the loan amount	Up to 15 years	2% of the principal	Required	5-7 days	Quick loan approval
Axis Bank	8.75%-13.30% p.a.	Up to 2% of the loan amount	Up to 10 years	3% of the principal	Required	5-7 days	Flexible repayment options
Bank of India	8.4% p.a onwards	1% of the loan amount	Up to 15 years	3% of the principal	Required	7-10 days	Easy documentation
TATA Capital	8.75% p.a. onwards	Up to 1.5% of the loan amount	Up to 12 years	4% of the principal	Usually not required	5-7 days	No collateral required

Other IDFC First Bank Loans

Kotak Mahindra Home Loan

Kotak Mahindra Business Loan

Kotak Mahindra Mortgage Loan