IIFL Bank provides business loans to SME units apart from various other loans such as home loans, personal loans, commercial vehicle loans etc. Let us understand the need for business loan, why IIFL is the right choice for such loans, charges asked by IIFL and documents needed for such loans.
IIFL Business Loan Interest Rate and Charges
IIFL Holdings Limited charges a fair price for the business loans while ensuring that your business needs are fulfilled appropriately. Some of the charges levied upon SME loan are:
- The interest rate that the bank offers on IIFL Business loan starts from 25% onwards
- The processing fee on IIFL Business Loan is up to 3% of the loan amount
- Late payment charges: 2% every month on overdue amount from default date
- Prepayment expenses: 4% of the outstanding amount
- PDC/ECS/ACH dishonour Charges: Rs.500 per instance
- Stamp duty & other statutory charges: As per applicable laws of the State
Eligibility Criteria for IIFL Business Loan
Following eligibility criteria is to be fulfilled to get business loan from IIFL Holdings Limited:
- Sole Proprietorship firms, Partnership firms, Private Limited Companies involved in business of Manufacturing, Trading and Services are eligible for the loan.
- The firm must be involved in the business for a minimum period of 3 years.
- The company must showcase a gradual progress and profit in its documents.
- The applicant must have a good credit history.
Documents Required for IIFL Business Loan:
Following are the set of documents that must be procured by the applicant while applying for SME loan from IIFL:
- Duly signed and filled in application form with recent photographs of all co-applicants.
- ID proof like Aadhaar Card, Passport, Driving License etc.
- Address proof like Voter ID Card, Aadhaar Card, and Passport.
- IT Returns and financial statements of previous 2 years.
- Last 6 months bank statements.
- VAT Returns/ Sales Tax/ GST return for the previous year.
- Additional documents might be needed for credit assessment and processing of loan request.
The borrower must repay the loan in the form of Equated Monthly Instalments (EMI). This amount is calculated based on the loan amount, loan tenure and interest rate charged. The EMI can be paid through Electronic Clearance Service (ECS) or direct debit. You can also repay the loan any time after 6 months of loan tenure with applicable foreclosure charges.
How to Apply for IIFL Business Loan
IIFL Business Loan offers business loan which caters to the SME sector. If you are looking for options and want to apply for a business loan, you can visit at Paisabazaar.com where all the comparisons of banks business loans along with interest rate and features are available. All the business loan products offered by the banks and NBFCs can be compared here at Paisabazaar.com along with the interest rate, services charges along with features and benefits.
To apply for the loan, one can connect on their toll-free number or apply online. A lower EMI with affordable interest rate and flexible repayment option from IIFL Business Loans will indeed help you in evolving your business and clearing the debts in a comfortable manner simultaneously.
Advantages of applying business loan from IIFL
Some of the important reasons that make IIFL Holdings Limited as the best choice for business loan are:
- The company abides by its core values stringently thus maintaining transparency in all its processes.
- IIFL already has a large base of happy customers. Over 4 million customers are doing business with IIFL.
- The company has legal and technical advisory team to guide you at every step and make clear decisions.
- IIFL provides doorstep banking services.
Features of IIFL Business Loan
IIFL Holdings Limited offers financial aid to SME firms to help them progress. They offer customised loan plans as per the need of the company. Some of the salient features of IIFL Business Loan are highlighted below:
- Customized loan plans: Instant Business loan for debts up to Rs.10 lakh, Fast track loan for loan amount up to Rs.20 lakh and Business Loan for loan sum ranging up to Rs.50 lakhs.
- The repayment tenure is flexible ranging from 12-48 months.
- The business loan is unsecured so one need not worry about any collateral or assets.
- The process of applying for a business loan is fast and requires only minimal and mandatory documentation without any hassle.
- The interest rates on business loans offered by IIFL are easily affordable and competitive.
- Loan repayment options are simple and flexible as per the loan applicant’s requirement.
What is the need for a Business Loan?
At some point or other, a business will need additional funds to evolve further or to handle daily cash flow requirement. It is not safe to invest all your savings in a business. That’s where loans from commercial banks prove helpful. Some of the top reasons for which you may need to apply for a business loan are:
- To expand operations: If the firm is progressing really well, you may plan for further expansion. This may lead to buying new property and setting up new offices. For such situations, heavy cash is needed. That’s where you may have to approach to a bank for a business loan.
- To purchase inventory: Business loans are also given to small businesses to purchase inventory. Some businesses like retail ones need to pile up their stock just before the peak season. So, for the stock piling, additional cash is needed. Usually, companies apply for short-term loan to buy inventory and clear the dues after successful sale.
- To purchase equipment: While outspreading your business, you may need to buy latest equipment for better performance. Also, the old and outdated machines need to be maintained so that production is not hampered. This calls for additional overheads. Banks provide intermediate loans for the purchase of equipment to help businesses overcome this crisis.
To increase working capital: Working capital is the money needed to maintain daily operations. Sometimes small businesses run out of cash to carry out their day-to-day process. In such case, they can apply for short term loans from bank. Once, the business flourishes and their own assets provide them the needful cash, they can repay bank debts.
Frequently Asked Questions (FAQ)
- What is the customer care number of IIFL Bank?
- To contact the bank for loan related queries, the toll free number is 1860-267-3000 or
7039-050-000. You can contact on the toll free number from 9 am to 6 pm.
- What is the loan amount that can be availed from IIFL Bank for business loan?
- IIFL offers loan amount starting from Rs.1 lakh up to Rs.50 lakh which can be used mostly for SME purpose.
- Is repayment allowed on business loan?
- Repayment is allowed only after 6 months of business loan with the applicable foreclosure charges.
- What is the mode of repayment?
A. Business loan can be repaid through monthly EMIs, ECS or through Cheques.