The best thing about IDFC first bank is that it helps you with business loans. Bank provides support even for equipment purchases, business upgrades, or any other business needs. But the IDFC business loan will have to pay it back in equal installments with fixed monthly intervals. Therefore, the loan is termed by the bank as Business Installment Loans (BIL).
What are the benefits of the IDFC Bank Business loan?
Here are some benefits which make different from other bank business loan:
- The Business Installment Loans are available not only for businesses but also for professionals and non-professionals.
- It is an unsecured loan requiring no collateral or security.
- The loan amount in IDFC first bank depends upon the kind of business, repayment capability, and income.
- The interest rate is given by the bank on the day of loan processing only.
- For getting a BIL loan from IDFC bank, your business must be of 3 years.
IDFC first bank business loan is best for those who are in search of unsecured loans.
Who can apply?
MSMEs/ non-Individuals such as:
- Private Ltd.
- Partnership firms
- Sole proprietors etc.,
Which are the factors IDFC First Bank Business Loan Interest Rate calculates?
There are multiple factors on which basis a bank calculates your interest rate. Some of these factors are :
- Loan amount: The higher the loan amount, the lesser will be the interest rate. Bank gives a loan of a minimum of ₹ 1 Lakh to up to ₹ 9 Lakh. The interest rate for high loan amounts can be lower resulting in lower EMIs.
- CIBIL Score: To get a loan from IDFC First Bank, your CIBIL score should be at least 750. Higher the CIBIL score, the higher the chances of getting a loan at the lowest business loan interest.
- Revenue: IDFC First Bank will offer you the loan at a lower interest rate if you have higher monthly revenue. Bank gives loans to the borrowers whose annual turnover is at least ₹ 12,00,000.
- Time in Business: The minimum business existence to get a loan from IDFC First Bank is 36 months.
What are the IDFC First Bank Business Loan Eligibility Criteria?
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: 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 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