Are you a small business owner in need of easy and fast money? IDFC first bank business loan has an easy online application process that is simple, quick, and less paperwork, and flexible repayments. This loan can help you make progress whether you are looking to grow your business, maintain a working capital or invest in new machinery. We will guide you through the process of how to apply to an IDFC First Bank business loan online, what are the eligibility criteria, documents required, and how you can get your loan approved in a shorter time.
What is IDFC First Bank Business Loan?
IDFC First Bank Business Loan is a convenient and comfortable funding option that helps entrepreneurs, startups, and small business owners develop their operations. This loan is useful whether you want to fund expansion, acquire equipment or working capital, as it can assist you to achieve your business objectives without any collateral.
The IDFC First Bank MSME Loan and the IDFC Micro Business Loan would suit the small to medium-sized enterprises. An IDFC Business Loan can be applied online in a straightforward digital procedure that needs few documents and will be approved quickly.
As far as the IDFC Business Loan interest rate is concerned, it depends on your business profile and the loan amount and the tenure you take a loan generally at competitive rates which most MSMEs can afford. To be eligible, verify the IDFC First Bank Business Loan eligibility criteria, which normally require minimum business turnover and operation history.
You will need to provide IDFC First Bank Business Loan documents required, including the proof of business registration, bank statements, KYC, and income documents, before you can get the loan. By ensuring you have the right paperwork and a proper business plan you are more likely to be approved and be able to get the funding that your business needs.
What are the Benefits of IDFC First Bank Business Loan?
IDFC First Bank Business Loan is flexible, accessible, and applicable to a broad variety of borrowers. It is particularly useful to entrepreneurs and professionals who are seeking unsecured loans without having to deal with cumbersome paperwork and collaterals.
These are some of the main advantages that distinguish it among other bank business loans:
- Unsecured Loan: You do not need to offer any collateral or security and it is therefore suited to new ventures and small companies.
- Open to All Professionals: It is not restricted to businesses only, professionals and even non-professionals can utilize them.
- Flexible Loan: The amount of loan you get is dependent on your business type, income and repayment capacity.
- Transparent Interest Rate: The interest rate of the IDFC Business Loan is transparent and is disclosed when processing the loan.
- Eligibility on Business Tenure: To be qualified to take a Business Installment Loan (BIL), your business should have at least 3 years of operation.
- Online Process: Since there is an opportunity to apply online to get an IDFC business loan, users have a paperless and fast experience.
This has made the IDFC First Bank Business Loan a good option to anyone who wants a loan that will be secured and does not require security or guarantees.
Who Can Apply for IDFC First Bank Business Loan?
IDFC First Bank Business Loan is not restrictive to only a few people and companies and so it can be used by anyone and any company. You are eligible to apply in case you are one of the following:
- Shop owners, traders, service providers and so on who are self-employed.
- Business owners who operate sole proprietorship firms, partnerships, or private limited companies or LLPs.
- Individuals such as doctors, architects and consultants that have their own practice.
- The applicants can also be non-professionals participating in business-related activities.
What is the IDFC Business Loan Interest Rate?
The interest rate charged for IDFC First Bank Business Loan is usually 14.5 to 28 percent per annum. Nevertheless, the precise rate, which will be proposed to you, will depend on a number of important factors that will be evaluated during the loan assessment process:
Issues Which Influence Your Interest Rate:
- Loan Amount: This is the amount of loan you are taking and the larger the amount the better because the interest rate is a little lower and this makes your EMI low.
- CIBIL Score: 750 and more will increase your possibility of receiving a better rate. When you have a good credit history, it means you are a serious borrower.
- Monthly Revenue: In case your turnover is more than 12 lakh per annum (or per month), the bank can give a better rate.
- Business Stability: You need to have your business up and running over the past 3 years (36 months). Better terms of interest are usually given when there is a longer business history.
- Loan Tenure: Very short loan periods could have slightly reduced interest rates as compared to long term loans.
Although IDFC First Bank does not specify a fixed rate for all customers, your final interest rate is informed at the moment of processing the loan depending on these factors.
IDFC First Bank Business Loan Eligibility: What Are the Criteria You Must Meet?
The main factors on which the eligibility of an applicant depends are:
- Age: Minimum at least 25 years old at the time of loan approval and maximum 65 years at the time of loan maturity.
- Loan Amount: Based on the loan amount eligibility, the bank gives you loans ranging from ₹ 1 Lakh to ₹ 9 Lakh.
- Profitability and Revenue: IDFC First Bank requires profit for a minimum of 2 years and a minimum business turnover of ₹ 12,00,000.
- Business Stability: IDFC First Bank requires a minimum business track record of 36 months. The bank will also look for growth in sales for the last three years. A decline in sales might impact your eligibility to get the loan.
- ITR and Banking: The Bank gives loans only after checking your income tax return and bank statements. Your ITR details for a minimum of 0 months and bank statement for a minimum of 0 months will be required by IDFC First Bank.
- CIBIL Score: IDFC First Bank will check your repayment history for all current and past loans and credit cards. The bank advises you to maintain a score of 750 and above to get loan approval.
What are the IDFC First Bank Business Loan Documents Required?
- Identity proof: Passport, PAN card, voter ID card, or a driving license
- Address proof: Driving license, Aadhar Card, Voter’s ID
- Last 6 months’ bank statement
- Last 2 years ITR with computation of income, P&L account, and balance sheet certified by CA
- Proof of continuation (Trade license/Establishment/ITR/Sales Tax Certificate)
- Business plan/project report
- Photo identity and Address proof: As per RBI-defined KYC guidelines. Ownership proof of office or residence
- Business Proof: Shop Act License/MOA & AOA/GST registration/ITR, Partnership Deed
Why Choose Finline to Create a Project Report for Bank Loan?
The IDFC First Bank Business Loan is one of the best options available to small business owners, professionals, and MSMEs who seek fast, flexible and collateral-free funding. It assists businesses in growing by providing them with the support they require with competitive interest rates, minimal paperwork and a complete online process.
In order to enhance your success rate, a proper and professional business plan should be presented. That is where Finline can assist. Finline is a web-based application that allows you to build sophisticated financial statements, business plans in minutes, like Canva, but for finances. Both the public and the private banks accept the reports of Finline in case you are taking a loan in IDFC first bank or any other bank in India.
Click now to create your report and take the next step for your business.