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When you are looking at applying for a business loan for your small business, MSME or start-up, IDFC FIRST Bank business loan can be a great place to start. Of course, there are other public and private banks offering business loans and advances, but what makes IDFC business loan often the preferred option is its simplicity in application, low-interest rates, flexible repayment tenure and more.
On that note, let’s take a quick look at IFDC bank business loan interest rates, loan types, loan eligibility and application procedure, business loan fees and charges and other details. Also, learn how to calculate EMI for business loans using EMI calculator.
About IDFC Bank business loans – Types and Features
When it comes to availing a business loan from a bank or NBFC, it’s imperative to understand its different types and features to ensure that you apply for the right loan category.
IDFC FIRST business loan is offered as unsecured loans. That is, the borrower does not have to pledge any collateral as security while borrowing the loan.
Here are the top features of IDFC business loan:
|IDFC FIRST Bank Unsecured – Business Loan||Loan amount:
* For more information please check the bank’s official website: idfcfirstbank.com/business-banking/loans/business-loan
Need MSME business loans? Learn about YES Bank MSME loans for your small business.
IDFC FIRST Bank business loan interest rate + Fees & charges
So, why take a business loan from IDFC FIRST Bank when there are so many other banks and NBFCs offering small business loans? Finding the right lender is not an easy task, especially when there are multiple lenders offering business loans. When selecting a lender, choose wisely, have questions to ask the bank when applying for a business loan especially on repayment terms, foreclosure charges, etc.
|IDFC Bank business loan particulars||Details|
|IDFC bank business loan rate of interest||10.5% – 24% p.a.
FIRST STEP micro business loan:
Unsecured (21.60%-27.60%), Secured (14.60%-16.60)
|Loan repayment tenure||Up to 48 months (for professionals, extended tenure of up to 84 months)
FIRST STEP micro business loan: Flexible up to 240 months
|IDFC first bank business loan fees and charges||
|IDFC business loan foreclosure charges||5% of outstanding principal (details should be validated with the bank during time of application)|
Eligibility and documents required for KYC
The next likely question is who can apply for a IDFC Bank business loan? IDFC FIRST Bank offers unsecured business loans to self-employed individuals, businesses, and those with documents on GST returns and banking financials.
Here’s a quick look at the eligibility criteria and documents required for IDFC bank business loans:
IDFC Bank business loan eligibility: Who can apply?
|MSMEs and non-individuals||Private limited companies, partnership firms, LLPs, sole proprietors|
Documents required for IDFC First business loan application:
- 2 passport sized photo + duly filled in application form
- Photo based identity and address proof e.g., Aadhaar, voter card, passport
- PAN card
- Business proof: Shop Act, ITR or GST registration proof, partnership deed etc.
- Previous 2-3 years ITR
- Previous 6 months bank statements
- Last 12 months GST returns statements
- Last 2 years audited P/L statement and balance sheet
How to apply for IDFC business loan?
You can apply for a business loan from IDFC Bank through their website and app (online) or by visiting a branch (offline) or reaching their customer care numbers.
- Apply for business loan via IDFC bank website: com/business-banking/loans/business-loan
- Apply via their mobile app
- Visit their bank branches across cities
- Contact bank business loan customer care number: 1800 10 888
Business loan application process details:
- Download the business loan application form online or visit the bank branch for an application form
- Duly fill in the form and attach/upload photographs as required
- Submit the documents required and await verification (depending on application type i.e., online vs offline business loan application, verification can take up to 15 days)
- Discuss details with the lender e.g., loan repayment terms, foreclosure charges, EMI calculation etc.
- Await loan approval or loan rejection (This can be due to low CIBIL score, non-submission of documents, not meeting eligibility etc. There are steps to be taken when business loan is rejected)
- Get loan disbursement and letter from the bank (usually 6-7 business days)
For more information, visit the bank website: idfcfirstbank.com/business-banking/loans/business-loan/application
IDFC bank business loan EMI calculator
The EMI calculation process for business loan through IDFC First bank is no different than any other. It’s calculated using the standard formula:
Business loan EMI formula:
E= P x r x (1+r)^n / [(1+r)^n-1]
E = The monthly EMI
P = The principal amount borrowed
r = The interest rate per month
n = Number of months/duration of loans
As can be understood, there are consequences of not repaying EMI, in that it can lower your CIBIL score and even prevent you from getting a business loan in the future.
In brief, EMI is calculated based on your principal amount, rate of interest, and tenure.
Example of EMI calculation:
Loan amount: ₹18,00,000
Interest rate: 14.5%
Tenure: 36 months
Business loan EMI amount: ₹61,957
IDFC micro business loan: The way ahead
So, here’s what you could do next. Explore the bank page or visit a branch to understand the different types of business loans available.
IDFC business loan can be availed for different categories:
- Unsecured – Professional Loan
- Secured – Loan Against Property
- Working Capital Loan
- Commercial Vehicle Loan
- FIRST STEP Micro Business Loan
FIRST STEP micro business loan:
This is a unique business loan type that has been introduced for micro businesses. Some of the key highlights of the IDFC micro business loan are:
- Customised credit solutions
- Collateral free loans up to ₹10 lakhs (for up to ₹30 lakhs check with bank)
- Flexible loan tenure of up to 240 months
- Digital application
- Available across 18 states
- Interest rates: Unsecured (21.60%-27.60%), Secured (14.60%-16.60)
- Age: 23-68 years
- Self employed, sole proprietorship, partnership firms
- 4 days for loan disbursal