IDFC FIRST Bank offers collateral-free business loans that can be used for expansion in new markets, buying new equipment, upgrading existing facilities, or meeting working capital requirements. The maximum loan amount offered by IDFC FIRST Bank is up to Rs. 1 crore for a loan tenure of up to 4 years. The bank offers balance transfer and top-up loan options. It also offers quick loan eligibility up to Rs. 50 lakh on the basis of the banking relationship.
IDFC FIRST Bank Business Loan Highlights – October 2022
|Interest Rate||As per business requirements and linked with MCLR*|
|Loan Amount||Up to Rs. 1 crore|
|Repayment Tenure||Up to 4 years|
|Balance Transfer & Top-up facility||Available|
|Turnaround Time for Loan Disbursal||6-7 Days|
*IDFC First Bank’s 1-year MCLR is 8.95%, With effect from 5th September 2022.
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Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs
|HDFC Bank||10.00% – 22.50% p.a.||Apply Now|
|FlexiLoans||1% per month onwards||Apply Now|
|ZipLoan||1% – 1.5% per month (Flat ROI)|
|Axis Bank||14.25% – 18.50% p.a.||Apply Now|
|IDFC First Bank||14.50% onwards|
|Kotak Mahindra Bank||16% – 19.99%||Apply Now|
|Fullerton Finance||17% – 21%|
|Bajaj Finserv||17% p.a. onwards||Apply Now|
|RBL Bank||17.50% – 25% p.a.||Apply Now|
|ICICI Bank||17% onwards|
|Indifi Finance||1.5% per month onwards||Apply Now|
|Lendingkart Finance||1.5% – 2% per month||Apply Now|
|Tata Capital Finance||19% p.a. onwards||Apply Now|
|NeoGrowth Finance||19% – 24% p.a.||Apply Now|
|Hero FinCorp||Up to 26% p.a.||Apply Now|
Note: Business loan interest rates are updated as on October 2022.
Fees & Charges
|Processing Fee||Up to 3.5% of the sanctioned loan amount*|
|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
|Late Payment/Penal Charges/Default Interest/Overdue(Per Month)||2% of the unpaid EMI or ₹300 whichever is higher|
|Repayment instrument swap charges||Rs. 500 per change request|
|Duplicate No Objection certificate / No Due Certificate||Rs. 500 Request in addition to bank’s issued letter|
|Stamp Duty & Other Statutory / Mortgage creation charges / Facilitation charges e.g. Stamp duty, MOD, MOE, etc.|| |
On Actuals as per each State Laws
|Physical repayment schedule||Rs. 500|
|Physical statement of loan||Rs. 500|
|Cheque swap charges||Rs. 500|
|Document retrieval charges (per retrieval)||Rs. 500|
|EMI Bounce Charges||Rs. 400 each instance|
* Inclusive of Administrative Charges.
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- Private Limited Companies
- Partnership Firms
- Limited Liability Partnerships (LLPs)
- Sole proprietorships, etc.
- Minimum Annual Business Turnover: Rs. 1 crore or above
- Business vintage: 3 years or above
Documents Required for Business Loan Application
- Photo Identity and Address proofs: As per RBI defined KYC guidelines
- Ownership proof of office or residence
- Business Proof: ITR, Shop Act License, GST registration, Partnership Deed, Memorandum of Association (MoA), Articles of Association (AoA)
Additional Documents are required as per the selected program (Any One)
- Basis Banking – Last 2 years ITR and Net worth statement, Last 6 months Bank statements
- Basis GST – Last 6 months’ banking, GST returns for the last 12 months, Latest ITR and computation
- Basis Income – Last 2 years’ ITR & computation, Last 2 years’ audited P&L & Balance sheet, Last 6 months’ Bank statements
Appy for Business Loan starting @ 16% p.a. Apply Now
Q. What is the processing fee charged by IDFC First Bank?
Ans. The processing fee is up to 3.50% of the sanctioned 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.