IDFC First Bank is one of the premier private banks that offer banking products, including business loans to individuals and enterprises. IDFC First Bank offers Business Installment Loan (BIL) for its customers. BIL is basically an unsecured loan that is offered to self-employed individuals and enterprises. This loan can be used for business expansion purposes or buying machinery or equipment and much more.
Capital First Bank has been merged with IDFC Bank to form IDFC First Bank, effective from 18 Dec, 2018.
IDFC First Bank Business Loan – Interest Rate & Eligibility
|Interest Rate||20% onwards|
|Loan Amount||Min. Rs. 1 lakh & Max. Rs. 9 lakh|
|Repayment Tenure||From 12 months – Max. 48 months|
|Age Criteria||Min. 25 years – Max. 68 years|
|Business Existence||Min. 3 years (Min. 1 year in same premises)|
|Business Profit after tax (PAT) after 2 years||In positive|
|Foreclosure Charges||5% of the principal outstanding (lock-in period of 12 months)|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI.
IDFC First Bank’s business loan can be availed by the following entities:
- Partnership Firms
- Sole Proprietorship Firms
- Self-employed Individuals / Professionals – CAs, Doctors, etc.
- Private Limited Companies and Closely held Limited Companies
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Types of Business Loans offered by IDFC First Bank
Below mentioned are the types of business loans offered to various professionals:
|IDFC First Bank – Business Instalment Loan (BIL) – 2021|
|Loan Type/Category||Loan for Doctors||Loan for professionals||Loans to Non-individuals (Entities)|
|Availed by||MBBS, MDS & BDS professionals||Architects, Chartered Accountants and Company Secretaries||Partnership firms, Proprietors, Private Limited Companies and Closely held limited companies|
|Interest Rate||As per loan requirement||As per loan requirement||As per loan requirement|
|Loan Amount||Up to Rs. 40 lakh||Up to Rs. 25 lakh||Up to Rs. 30 lakh|
|Repayment Tenure||Up to 60 months||Up to 48 months*||Up to 48 months*|
|Collateral / Security||Not required||Not required||Not required|
IDFC First Bank Business Loan – Fees & Charges
|Processing Fee||Up to 2.5% of the loan amount|
|Foreclosure Charges||5% of Principal loan outstanding, at the time of loan closure for Simple Business Loan|
|EMI Bounce Charge||Rs. 400|
|Document retrieval charges||Rs. 500|
|Statement of account||Rs. 500|
|Duplicate no objection certificate / No dues certificate||Rs. 500|
|Disbursement cancellation / Rebooking charges||Rs 10000 within 30 days of disbursement|
|Repayment instrument swap charges||Rs. 500|
|Overdue Interest||2% per month of the unpaid EMI or Rs 300 whichever is higher|
Note: The mentioned fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
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- Duly filled application form along with passport sized photographs
- Identity proof: Passport, PAN card, voter ID card or a driving license
- Address proof: Driving license, Aadhar Card, Voter’s ID
- Last 3 months’ bank statement
- Proof of continuation (Trade license/Establishment/ITR/Sales Tax Certificate)
- Any other document required by IDFC First Bank
Compare Business Loan Interest Rates from Top Banks/NBFCs
|SBI||8.30% onwards (SME Loan)|
|Kotak Mahindra Bank||15% onwards|
|HDFC Bank||16% onwards|
|Bajaj Finserv||17% onwards|
|Axis Bank||17% onwards|
|Fullerton Finance||17% onwards|
|Yes Bank||17% onwards|
|ICICI Bank||18% onwards|
|Lendingkart Finance||18% onwards|
|IIFL Finance||18% onwards|
|Hero Fincorp||18% onwards|
|Indifi Finance||18% onwards|
|NeoGrowth Finance||18% onwards|
|Tata Capital Finance||17% onwards|
|RBL Bank||19% onwards|
|HDB Financial Services Ltd.||22% onwards|
|PNB Business Loan||Based on your Business’s Profile|
|Bank of Baroda||Based on your Business’s Profile|
Frequently Asked Questions
Q. What is the interest rate on business loan in IDFC First Bank?
Ans. The business loan interest rate offered by IDFC First Bank is 20% onwards.
Q. What is the processing fee charged by IDFC First Bank?
Ans. The processing fee is 2.50% of the loan amount.
Q. Do I have to go to an IDFC branch to avail of a business loan?
Ans. No, you do not need to visit the branch as IDFC provides door-to-door service.
Q. Do I need to own a house or place of business?
Ans. Yes, you are required to own a house or place of business.
Q. What are the foreclosure charges for a business loan from IDFC First Bank?
Ans. The foreclosure charges are 5% on the outstanding amount.