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Features of IDFC FIRST Bank Business Loans

  • Loan Amount and Tenure:
    Unsecured Loans: Up to ₹1 Crore collateral-free loans.
    Working Capital Loans: Up to ₹10 Crore based on financials or ₹5 Crore based on GST returns.
    Micro Business Loans: ₹25,000 to ₹10 lakh (collateral-free) or up to ₹50 lakh (collateral-backed).
    Loan Tenure: Flexible repayment options from 12 to 48 months.
  • Competitive Interest Rates:
    Starting Rates: From 11.99% p.a. for instant loans, 14% p.a. for general business loans.
    Factors Affecting Rates: CIBIL score (750+ preferred), business revenue and vintage.
    Fixed Rates: Rates are fixed for the loan tenure, providing stability in repayments.
  • Collateral-Free Options:
    Unsecured business loans up to ₹1 crore require no collateral or security.
    Dropline Overdraft facility offers pre-approved, collateral-free line of credit.
    Micro Business Loans (FIRST STEP) available with minimal documentation.
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    • Flexible Loan Types: Business Installment Loan (BIL): For general business needs like expansion, equipment purchase, or working capital.
      Dropline Overdraft: A pre-approved, collateral-free line of credit where interest is charged only on utilized amount.
      Working Capital Loans: Includes overdraft, cash credit, letter of credit, bank guarantee, and term loans.
      Machinery Loan: For purchasing advanced machinery or equipment.
      Healthcare Equipment Loan: For hospitals and doctors to finance diagnostic or imaging equipment.
      Loan Against Property: For residential, commercial or industrial properties.
      Micro Business Loan (FIRST STEP): For small enterprises with loans up to ₹3 Lakh without income proof.
    • Quick and Easy Application: Fast processing with minimal documentation (KYC documents, GST returns, bank statements, ITR for 2 years).
      Online application available via bank's website or app with instant approvals for eligible applicants.
      Industry-leading proprietary tools ensure faster loan approvals.
    • Flexible Repayment Options: Repayment through Equated Monthly Installments (EMIs) or customized schedules.
      Options for prepayment with no foreclosure charges after 6 months (5% fee if foreclosed earlier).
      Auto-debit facility and multiple payment methods (credit/debit card, UPI, net banking).
    • Additional Benefits: Balance Transfer and Top-Up: Transfer existing loans to IDFC FIRST Bank for lower rates.
      Low Processing Fees: Up to 3.5% of the loan amount.
      Insurance Covers: Options like Life Group Credit Protect, Health Protect.
      Startup Support: Access to mentorship, networking through FIRST WINGS Startup Banking program.
      Beyond Banking Offers: Complimentary access to ERP, HRMS, payroll, taxation, legal advisory apps.
    • Eligibility-Based Schemes: Income Scheme: Based on business income and net profit.
      Banking Scheme: Based on average bank balance.
      GST Returns Scheme: Based on annual turnover per GST data.
    • Specialized Programs: Customized solutions for professionals (doctors, CAs, engineers) and non-individuals (private limited companies, partnerships, LLPs).
      Micro-Enterprise Loans for rural businesses with zero collateral and instant disbursal.
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Benefits of IDFC FIRST Bank Business Loans

  • Access to Capital for Growth: Funds up to ₹1 Crore (unsecured) or ₹10 Crore (working capital) enable businesses to expand operations, purchase equipment, hire staff or enter new markets.
  • Collateral-Free Financing: Unsecured loans like Business Installment Loans (BIL) and Dropline Overdraft require no collateral, reducing risk to personal or business assets.
  • Flexible Usage: Loans can be used for diverse needs such as working capital, inventory purchase, machinery acquisition, marketing or debt consolidation.
  • Competitive Interest Rates: Starting at 14% p.a., rates are tailored to credit profiles, ensuring cost-effective borrowing for businesses with strong financials.
    • Quick and Hassle-Free Process: Fast approvals with minimal documentation (KYC, GST returns, bank statements) and online applications ensure funds are disbursed swiftly, often within days.
    • Customized Repayment Options: Flexible tenures up to 48 months with monthly, quarterly or annual repayment schedules suit varying cash flows.
    • Boosts Cash Flow Management: Working capital loans and overdraft facilities (e.g., Dropline Overdraft) provide liquidity to manage daily operations, pay suppliers or handle unexpected expenses.
    • Tailored Solutions for Diverse Businesses: Specialized loans for MSMEs, startups, professionals, and micro-enterprises cater to specific needs. Schemes based on income, banking or GST returns simplify eligibility.
    • Additional Financial Benefits: Balance Transfer: Lower interest rates by transferring existing loans. Top-Up Loans: Extra funds for existing borrowers. Low Processing Fees: Up to 3.5% of the loan amount.
    • Enhanced Business Opportunities: Loans for machinery or healthcare equipment help modernize operations, improve efficiency and increase revenue potential.
    • Support for Startups and Small Businesses: FIRST WINGS Startup Banking program offers mentorship, networking and fundraising support alongside financing.
    • Risk Mitigation: Optional insurance covers (e.g., Life Group Credit Protect, EMI Protect) safeguard against unforeseen events like illness, accidents or business disruptions.
    • Improved Credit Profile: Timely repayments enhance the business's CIBIL score, improving future borrowing prospects and terms.
    • Digital Convenience: Seamless application, tracking and repayment via IDFC FIRST Bank's app, net banking or third-party platforms (e.g., Bajaj Finserv) with multiple payment options (UPI, cards).
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How to Apply for an IDFC FIRST Bank Business Loan

  • 1. Check Eligibility
    • Business Type: Sole proprietorships, partnerships, private limited companies, LLPs, self-employed professionals (e.g., doctors, CAs), or MSMEs.
    • Minimum Requirements: Business vintage: Typically 2-3 years (may vary for micro-loans or startups). Annual turnover: As per loan scheme. CIBIL score: Preferably 750+ for unsecured loans.
    • Age: 21-65 years (for key applicant).
    • Specific Schemes: Income Scheme (based on net profit), Banking Scheme (based on average bank balance), GST Returns Scheme (based on annual turnover).
  • 2. Gather Required Documents
    • Identity Proof: PAN card, Aadhaar card, passport, or voter ID.
    • Address Proof: Aadhaar, utility bill, or rent agreement.
    • Business Proof: GST registration, shop & establishment license, or Udyam registration.
    • Financial Documents: Last 6-12 months' bank statements, ITR for last 2 years with profit & loss statement and balance sheet, GST returns (if applicable).
    • Loan-Specific Documents: For Loan Against Property: Property papers. For Machinery Loan: Equipment quotation.
  • 3. Choose the Application Method
    • Online Application: Visit www.idfcfirstbank.com, navigate to "Business Banking" > "Business Loans", fill the online form and upload documents.
    • Mobile App: Download the IDFC FIRST Bank app, go to "Loans" section and follow prompts.
    • Branch Visit: Locate nearest branch via website/app, submit documents and get assistance.
    • Customer Care: Call 1860 500 9900 to initiate process.
  • 4. Loan Processing and Verification
    • Application Review: Bank verifies details, credit score and documents.
    • Eligibility Assessment: Loan amount and terms determined based on financials.
    • Property/Business Evaluation: For secured loans like Loan Against Property.
    • Approval: Notification via SMS, email or app, often within hours or days.
  • 5. Accept Loan Offer and Sign Agreement
    • Review loan offer (amount, interest rate, tenure, EMI).
    • Sign loan agreement digitally or physically.
    • Provide auto-debit mandates for repayments if required.
  • 6. Loan Disbursal
    • For micro-loans like FIRST STEP, disbursal may be instant with doorstep services.

Eligibility Criteria for IDFC FIRST Bank Business Loans

  • Applicant Type:
    • Self-employed individuals, professionals (e.g., doctors, CAs, engineers, architects), or business owners.
    • Business entities: Sole proprietorships, partnerships, private limited companies, LLPs, or trusts.
    • Micro, Small and Medium Enterprises (MSMEs) and startups (specific schemes like FIRST WINGS may apply).
  • Age Requirements:
    • Applicant (or key person): 21 to 65 years at the time of loan maturity.
    • Professionals (e.g., doctors, CAs): 23 to 68 years (21 years if parents are in same profession).
  • Business Vintage:
    • Minimum 2-3 years of business operations for most loans (may be relaxed for micro-loans or startups).
    • For specific schemes (e.g., FIRST STEP Micro Business Loan), no minimum vintage may be required.
  • Credit Score:
    • CIBIL score of 750 or above is preferred for unsecured loans (Business Installment Loan, Dropline Overdraft).
    • Lower scores may be considered for secured loans (e.g., Loan Against Property) or micro-loans.
  • Nationality and Residency:
    • Indian citizens or entities registered in India.
    • Valid address proof for business and applicant's residence.
  • Loan-Specific Eligibility:
    • Income Scheme: Based on business income and profitability. Positive net profit as per ITR for last 2 years.
    • Banking Scheme: Based on banking transactions and average balance.
    • GST Returns Scheme: Minimum turnover varies by loan amount (₹10 Lakh+ annual turnover for smaller loans).
    • Micro Business Loan (FIRST STEP): Minimal or no requirements for turnover/business vintage.
    • Loan Against Property: Clear title to residential, commercial or industrial property.
    • Working Capital Loans: Minimum annual turnover as per GST or financials.
    • Machinery/Healthcare Equipment Loan: Specific to equipment purchase with valid supplier quotation.
    • Startup Loans (FIRST WINGS Program): Early-stage startups may qualify with strong business plan.
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Documents Required for IDFC FIRST Bank Business Loans

  • Application Form:
    - Duly filled and signed loan application form (available online or at branches).
    - Recent passport-size photographs of the applicant.
  • Identity Proof (Any one):
    - PAN card (mandatory for individuals and businesses).
    - Aadhaar card.
    - Passport.
    - Voter ID.
    - Driving license.
  • Address Proof (Any one):
    - Aadhaar card.
    - Passport.
    - Utility bill (electricity, water, or telephone bill, not older than 3 months).
    - Rental agreement.
    - Property tax receipt.
  • Business Proof (As applicable):
    - GST registration certificate.
    - Udyam Registration certificate (for MSMEs).
    - Shop and Establishment Act license.
    - Business registration certificate (for partnerships, private limited companies etc.).
    - Memorandum and Articles of Association (for companies).
    - Trust deed or society registration certificate (for trusts/societies).
  • Financial Documents:
    - Income Tax Returns (ITR) for the last 2 years (for business and applicant).
    - Profit and loss statement for the last 2 years (audited, if applicable).
    - Balance sheet for the last 2 years (for larger businesses or companies).
    - Bank statements for the last 6-12 months (from primary business account).
    - GST returns (if applicable, for last 6-12 months).
  • Loan-Specific Documents:
    For Loan Against Property: Property documents, title deed, approved building plan, NOC from housing society.
    For Machinery/Healthcare Equipment Loan: Quotation from supplier, purchase order.
    For Micro Business Loan (FIRST STEP): Minimal documents - identity, address proof, basic business details.
  • Additional Documents (If Applicable):
    - Board resolution (for companies).
    - Partnership deed (for partnerships).
    - Authorized signatory list and ID proof.
    - Existing loan account statements (for repayment track record).

Factors for IDFC FIRST Bank Business Loans

  • Credit Score (CIBIL Score):
    - A score of 750 or above is preferred for unsecured loans (Business Installment Loan, Dropline Overdraft).
    - Higher scores lead to faster approvals, lower interest rates (starting at 14% p.a.) and higher loan amounts.
    - Lower scores may result in rejection, higher rates or requirement for collateral.
  • Business Vintage:
    - Typically 2-3 years for most loans (may be relaxed for micro-loans or startups).
    - Longer vintage increases approval chances and eligibility for larger loans (up to ₹1 Crore unsecured or ₹10 Crore for working capital).
  • Business Turnover and Financial Performance:
    - GST Scheme: Minimum turnover based on GST returns (₹10 Lakh+ for smaller loans).
    - Income Scheme: Positive net profit as per ITR for last 2 years.
    - Higher turnover/profit qualifies for larger loan amounts and better terms.
  • Debt-to-Income Ratio (DTI):
    - Lower DTI (below 40-50%) is preferred to ensure business can handle additional EMIs.
    - High DTI may lead to rejection or reduced loan amounts.
  • Type of Business and Industry:
    - Eligible Businesses: Manufacturing, trading, services, professionals (doctors, CAs), MSMEs, startups.
    - Stable, regulated industries get better terms.
    - Specialized loans cater to specific sectors like medical or manufacturing.
  • Collateral (For Secured Loans):
    - Loan Against Property: Residential, commercial or industrial property (loan up to 50-60% of property value).
    - Collateral-free loans (up to ₹1 Crore) rely heavily on credit score and financials.
  • Documentation Quality:
    - Complete and accurate documents verify eligibility and expedite processing.
    - Incomplete or inconsistent documents cause delays or rejection.
  • Co-Applicant Profile:
    - A co-applicant (mandatory for unsecured loans) shares repayment responsibility.
    - A strong co-applicant improves approval chances and terms.
  • Loan Purpose and End-Use:
    - Clear, verifiable purposes (e.g., equipment quotation for Machinery Loan) enhance approval.
    - Vague or speculative uses may raise red flags.
  • Banking Relationship with IDFC FIRST Bank:
    - Current account holders may get faster approvals or pre-approved offers.

Frequently Asked Questions (FAQs)

1. What types of business loans does IDFC FIRST Bank offer?
IDFC FIRST Bank offers various business loans, including:
• Unsecured Business Loan (up to ₹1 crore)
• Secured Business Loan (against property)
• Working Capital Loan (OD, CC, LC up to ₹10 crore)
• Dropline Overdraft Loan (collateral-free credit line)
• Machinery Loan
• Healthcare Equipment Loan
• FIRST STEP Micro Business Loan (₹25,000 to ₹10 lakh)
• Loan Against Property (residential, commercial, or industrial)
• Business Installment Loan (BIL)
2. Who is eligible for an IDFC FIRST Bank business loan?
• MSMEs, self-employed individuals, sole proprietors, Pvt Ltd companies, LLPs
• Minimum turnover: ₹1 crore (₹50 lakh for some loans)
• Business vintage: 3 years (2 years for FIRST STEP)
• Age: 28–68 years (23–68 for professionals)
• CIBIL score: 750+ recommended
• Positive net worth and profit for last 2 years
3. What documents are required to apply for a business loan?
• Identity & Address Proof: Aadhaar, Passport, Voter ID, DL, utility bills
• Business Proof: GST, Shop License, MOA & AOA, Partnership Deed, ITR
• Financials: Last 2 years' ITR, P&L, Balance Sheet, 6 months bank statements, 12 months GST returns (if applicable)
• Additional: Business plan, proof of continuity, 2 passport photos, filled application
• FIRST STEP: Proof of 2-year business continuity at same location
4. What are the interest rates for IDFC FIRST Bank business loans?
• From 11.99% p.a. (instant), 14% p.a. (general), 15% p.a. (varies)
• EMI starts from ₹2,783/lakh
• Factors: Loan amount, CIBIL score, revenue, vintage
• Rates are fixed but subject to change; refer to official website for latest
5. What are the fees and charges associated with business loans?
• Processing Fee: Up to 3.5%
• Foreclosure: 5% (waived for MSMEs)
• Under-utilization: 0.25% quarterly (OD only)
• Late payment fee: As per schedule
• Legal, stamp, and other charges may apply
6. What is the loan amount and tenure offered?
• Loan amount: ₹1 lakh to ₹1 crore (unsecured), up to ₹10 crore (working capital), higher for secured
• FIRST STEP: ₹25,000 to ₹10 lakh
• Tenure: 12–48 months (up to 36 months for FIRST STEP)
• Instant loans: Up to ₹50 lakh via current account eligibility
7. Do I need collateral or a guarantor for a business loan?
• Collateral: Not needed for unsecured loans up to ₹1 crore
• Guarantor: Not required; co-applicant mandatory for unsecured loans
8. How can I apply for an IDFC FIRST Bank business loan?
• Online: Visit www.idfcfirstbank.com > Business Loan > Apply Now
• Branch: Visit nearest branch with documents
• Customer care: Call 1860 500 9900
• Schemes: Income, Banking, or GST-based eligibility schemes
9. How long does it take to get a business loan approved?
• Instant: Up to ₹50 lakh approved within minutes (for eligible applicants)
• General: 3–7 days depending on profile and documentation
10. What are the repayment options for business loans?
• EMI: Auto-debit via NACH
• Flexible: Monthly, quarterly, annual (based on loan type)
• Dropline Overdraft: Pay anytime, interest only on usage
• Payment: Net Banking, NEFT/RTGS, IDFC FIRST Mobile App
• Foreclosure: Allowed with 5% charge (waived for MSMEs)
11. Can I transfer an existing business loan to IDFC FIRST Bank?
Yes. You can transfer your loan from another bank to enjoy lower interest rates and get top-up options.
12. What are the benefits of IDFC FIRST Bank business loans?
• Collateral-free loans up to ₹1 crore
• Attractive interest rates (starting 11.99%)
• Quick approvals and minimal paperwork
• Customized options for MSMEs, professionals, and micro-units
• Access to OD accounts, forex, trade, payment solutions
• Insurance cover: Life Group Credit Protect
13. What happens if I miss an EMI payment?
• Affects CIBIL score and may incur late fees
• Use NEFT/RTGS to clear bounced EMI
• Contact customer care for help
• Multiple misses can lead to legal/recovery action
14. How can I track my loan application or service requests?
• Online: Log into Mobile App or Net Banking > Customer Service > Track Requests
• Phone: Call 1800 10 888 or 1860 500 9900
• Escalate: Email pno@idfcfirstbank.com or call 1800 209 9771
15. Can non-IDFC FIRST Bank customers apply for a business loan?
Yes. Even if you're not an existing customer, you can apply as long as you meet the eligibility and documentation criteria.

List of IDFC FIRST Bank Business Loans

  • IDFC FIRST Bank Unsecured Business Loan
  • IDFC FIRST Bank Secured Business Loan
  • IDFC FIRST Bank Working Capital Loan
  • IDFC FIRST Bank Dropline Overdraft Loan
  • IDFC FIRST Bank Machinery Loan
  • IDFC FIRST Bank Healthcare Equipment Loan
  • FIRST STEP Micro Business Loan
  • IDFC FIRST Bank Loan Against Property
  • IDFC FIRST Bank Business Installment Loan (BIL)