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When it comes to obtaining a business loan, there are multiple options available in the market. You can either approach a bank or approach a non-banking finance company (NBFC) such as IIFL Finance.
IIFL Finance is one of the leading NBFCs that offers business loans at competitive interest rates. This article highlights the features of IIFL business loan, its eligibility criteria, interest rate, and so on.
IIFL business loan: features
- Loan amount: IIFL offers business loans of up to ₹30 Lakhs.
- Loan tenure: flexible loan tenure from 12 months to 60 months
- Unsecured loan: IIFL business loan does not need any security. Meaning you will not have to promise any collateral while obtaining a business loan from IIFL.
- Paperless process: The entire process is digital, and you will not need to collate paper documents.
- Interest rate: Current interest rate varies from 12.75%-33.75% pa.
- Processing fee: IIFL Finance charges processing fees of up to 2-4%.
Note: The rate of interest is subject to change periodically. It is best to get in touch with IIFL for knowing the prevailing rate of interest.
IIFL business loan: Eligibility criteria
The following are the eligibility criteria for obtaining a business loan from IIFL Finance:
- The nationality of the applicant should be Indian.
- Your business needs to be a proprietary firm.
- The age of the applicant should be between 23-65 years.
- Business should be operational for a minimum of 2 years.
- Although there is no requirement for a minimum credit score, a higher credit score can help you to get higher credit and faster approval. Generally, a credit score above 700 is considered to be good.
IIFL business loan: Required documents
IIFL asks for commonly required documents from the applicant for processing a business loan. Below is the list of documents:
- PAN card of the applicant
- Aadhaar card of the applicant
- Business Vintage Proof (Minimum 2 Years) i.e. proof of business being in operations for a minimum of 2 years
- Bank statement for the last 12 months
How to apply for an IIFL business loan?
The entire process of applying for an IIFL business loan is digital. Here is how you can apply for and obtain a business loan.
- Visit IIFL Finance’s website for applying.
- Click on ‘Apply now’.
- Fill in your details such as name, mobile number, and email address.
- You will receive a confirmation.
- You will then have to upload the required documents.
- Your loan will then be disbursed.
How can you use a business loan obtained from IIFL Finance?
A business loan can be used for multiple business needs. Here are some of the prominent usages of IIFL business loans.
- Improve cash flow: One of the challenges for MSMEs is the lack of cash flow. With an IIFL Finance business loan, you can improve the cash flow of your business.
- Marketing: You can the enhance reach of your business by using funds for creating marketing collaterals and running marketing campaigns.
- Technology upgrades: If you plan to do any technology upgrades in your business, you can use the business loan from IIFL Finance to fund the upgrades.
IIFL Finance customer care
If you have applied for a business loan from IIFL Finance and want to get in touch with customer care, here is how you can reach out to them.
- Customer care number: 1860-267-3000 or 7039-050-000
- You can also raise a request online: https://www.iifl.com/contact-us/raise-a-request
- Alternatively, you can also use the chat option on IIFL Finance’s website for resolving your queries.
Tips for getting a business loan
- Check your credit score. It plays an important role in getting a business loan. If your credit score is not up to the mark, you can get a short-term loan such as a gold loan, and make timely payments to improve your score.
- If you are planning to get a business loan, you can apply at multiple banks and NBFCs. For example, you can apply for SBI business loans, HDFC business loans, Canara Bank business loans, and so on.
- Read the eligibility criteria before applying. Otherwise, there are chances of losing processing fees in case your business loan application is rejected.
- Compare and understand the loan offers you get from all the lending institutes. You can also compare the rate of interest, loan repayment terms, calculate EMIs, etc., and determine the best offer for your business.
- Now, many banks and NBFCs have moved to digital loan approvals. Hence, it is a good idea to have your KYC documents and other required documents in one system.
- Check the required formats for uploading the documents. Formats such as .jpg, .pdf, etc., are widely accepted.
- Read the business loan agreement carefully before signing it.
- Beware of business loan scams. Do not trust unauthorised calls and avoid clicking on random links.