What can a Business loan be used for?

You can use a Business loan to upgrade or purchase equipment, cover employee salaries, rent or to expand your business.

What is the range of loan amounts, minimum and maximum, that I can apply for?

The minimum loan amount one can avail of ₹7 Lakhs and up to a maximum of ₹1 Crore.

What is the maximum loan tenure for an IDFC FIRST Bank Business loan?

We are currently offering our customers a Business Loan tenure from a minimum of 12 months up to a maximum of 48 months.

What are the different types of loans offered under Business Loan?

A Business Loan can be availed in the form of a term loan or a dropline overdraft facility.

How do I apply for IDFC FIRST Bank Business Loan?

You can apply for IDFC FIRST Bank Business Loan via – Our Website - https://www.idfcfirst.bank.in/business-banking/loans Our Mobile App - https://my.idfcfirst.bank.in/digital-banking-app Our Branches - https://nearme.idfcfirstbank.com/ Our Loan Centres - https://www.idfcfirst.bank.in/support/asset-branch Or you can call us on 1800 10 888 and speak to our representative

How will my EMI be calculated?

The principal amount and the interest rate applied to the principal make up your EMI. The amount you borrow, the rate of interest charged, and the loan tenure are the variables that affect the EMI. If the interest rate increases, EMIs may alter. You can calculate your potential EMI here.

What are the various charges incurred?

Click on the link to know more about the charges.

When can I get a top up on my existing loan?

You will be eligible for a top up on your existing loan only once you have completed regular repayment of your EMIs for 12 months without any date default.

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Business Loan

Q: What is a Business Loan?

A business loan is a collateral-free loan offered to a self-employed individual or to business entities.

Q: What are the benefits of availing a Business Loan from IDFC FIRST Bank?

We have one of the best Business Loan solutions. Some of our major features are: • Collateral-free loans up to Rs.1 Crore at attractive interest rates • Flexible tenure up to 48 months • Unique balance transfer and additional top-up facilities • Higher loan facility basis audited financials • Quick loan based on bank statements or basis GST returns • Superior customer experience with easy documentation and a hassle-free digitized processes

Q: How does a term loan facility work?

A term loan gives you a one-time amount of money that you pay back over a set period in regular instalments. The interest rate stays the same throughout, making it easier to plan and budget your repayments.

Q: What is a Dropline Overdraft facility and how does it work?

Dropline Overdraft is another type of credit facility that allows you to withdraw funds from pre-approved credit limit as and when required. With the dropline feature, the Overdraft limit gradually decreases over time until it reaches zero. You will be charged interest only on the overdraft amount utilized.

Q: What are the different schemes through which a Business Loan can be availed?

There are different schemes through which a Business Loan can be availed, including: • Income scheme - Eligibility is based on the derived income & net profit of the business • Banking scheme - Eligibility is based on the average bank balance • GST returns scheme - Eligibility is based on the annual business turnover according to GST data

Collateral-Free Business Loan Up To ₹1 Cr

Apply Now Track Application

Available for self-employed individuals and businesses

Fast and seamless process with minimal documentation

Business Loan up to ₹75 lacs based on your GST returns

Quick funding up to ₹75 lacs based on your current account statement

What is a Business Loan

A business loan is a financial solution that enables businesses to meet their operational needs, expand infrastructure, invest in equipment, or manage working capital efficiently. IDFC FIRST Bank offers a comprehensive loan for businesses, specially tailored for business owners, young entrepreneurs, MSMEs, and growing enterprises.

Read More

Loan Amount

₹7 Lakhs to ₹1 Crore

Loan Tenure

12 Months to 48 Months

Interest Rates

Starting at 13%

Benefits of Business Loans

Expand Business Operations

Use a micro small and medium enterprises (MSME) loan to fuel your growth, whether you're opening a new branch, hiring more employees, or investing in new technology.

Improve Cash Flow

Use the business loan to bridge gaps in your cash flow and safeguard your ability to meet your day-to-day expenses.

Purchase Equipment

Use the instant business loan to buy new machinery or equipment and improve your productivity or expand your business.

Manage Inventory

Leverage business loans to finance your inventory purchases, so that you have enough stock to meet customer demand.

Collateral-Free Funding

Access funds for your business through an unsecured business loan to smoothly run the business, without risking your assets.

Instant Loan Approvals

Enjoy fast-track processing and instant business loans for eligible applicants with minimal documentation.

Features of Business Loans

Unsecured business loans ranging from ₹7 lakhs to 1 crore

Flexible tenures of up to 48 months

Competitive interest rates starting at just 13% p.a.

Quick eligibility up to ₹75 lakhs basis banking

Flexibility to choose between a term loan and dropline overdraft facility

Business Loan EMI Calculator

Choose the amount

₹

7L 1Cr

7L 10L 25L 50L 1Cr

Choose the period

Months

12 months 48 months

Choose the interest rate

13% 24%

You will pay an EMI of only

₹/-

Apply Now

Principal amount ₹10,00,000
Interest amount ₹1,86,000
Total amount payable₹11,86,000

T&Cs apply. All decisions are at the sole discretion of IDFC FIRST Bank

Interest Rates & Charges on Business Loans

Rates & Charges

Rate of Interest - Starting at 13%*
Processing fee** - Up to 3.5% of the loan amount (Term loan)
Stamp Duty - As per actuals

*Terms and conditions apply.

*Rates may vary based on eligibility, loan amount, and credit profile.

You can visit Fees & Charges to get information about various fees & charges applied while getting a Business Loan.

**GST is applicable

Dropline Overdraft

A Dropline Overdraft Loan is a versatile financial product that allows you to access a pre-approved line of credit whenever you need it. This facility allows you to utilize amount up to an agreed limit. The withdrawal limit reduces every month till the end of the loan tenure. The interest is levied only on the utilized amount and not on the total amount borrowed. The amount can be deposited to the account anytime to reduce the outstanding balance.

Avail your Business Loan as a Dropline Overdraft Facility and enjoy amazing benefits like interest only on the amount utilized, instant access to funds, collateral free funding up to 1 Crore, and much more.

Key features:

24/7 instant access to funds
Continuous access to a predetermined line of credit
Flexibility to repay the borrowed amount
Pay interest only on the amount utilized
Financial security against unexpected financial emergencies

CGTMSE Scheme for Collateral-Free Business Loans

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a Government of India initiative launched in collaboration with SIDBI to empower Micro and Small Enterprises (MSEs) by providing collateral free MSME business loan. Under this scheme, eligible MSEs can avail loans up to ₹1 crore through Member Lending Institutions (MLIs), including IDFC FIRST Bank.

Here are the notable features of the CGTMSE scheme:

No requirement of collateral or third-party guarantee
Loans of up to ₹1 crore available
Supports both working capital and term loan requirements
Easy application process with clearly defined guidelines

Machinery Finance

Upgrading or acquiring advanced machinery is critical for scaling manufacturing operations and improving productivity. A machinery finance helps you invest in modern equipment without putting pressure on your working capital. IDFC FIRST Bank’s machinery finance designed to support manufacturers with flexible repayment options, competitive interest rates, and quick processing. Whether you plan to expand capacity, replace outdated machines, or adopt new technology, this machinery finance solution ensures you meet business goals efficiently while maintaining financial stability.

Features & Benefits of Machinery Finance

Enjoy higher loan amounts up to ₹1 Crore
No additional collateral required
Digitized Hassle-Free Process
Up to 85% financing, including coverage for annual maintenance cost and applicable taxes

Business Loan Eligibility

Eligibility Criteria to Apply for a Business Loan

Applicant type: MSMEs, Sole Proprietors, Partnership Firms, LLPs, Private/Public Limited Companies

Age: Between 28 and 68 years (at loan maturity)

Turnover: ₹1 crore and above

Business vintage: Minimum 3 years of continuous operations

Financial health: Positive net worth and consistent cash profits

Documents Required for Business Loan Application

IDFC FIRST Bank offers a straightforward documentation process, ensuring a hassle-free business loan application process. Typically, you will need the following documents:

KYC Documents: PAN, Aadhaar, passport, voter ID, or driving licence
Address Proof: Ownership/rental proof of office/residence
Business Proof: GST registration, MOA & AOA, Shop Act, Partnership Deed, Udyam Certificate
Financials (based on scheme):
• Banking Scheme: Last 6 months’ bank statement
• GST Scheme: 6 months’ bank statement + 12 months’ GST returns + latest ITR
• Income Scheme: 6 months’ bank statement + Audited financials + 2 years’ ITR

How to Apply for a Business Loan?

Step 1

Click on 'Apply Now'

Step 2

Submit the required details

Step 3

Our representative will contact you within 24 hours

Step 4

Your application will be evaluated for eligibility

Step 5

Once verified, get the loan amount in your bank account.

Business Loan FAQs

What is a Business Loan and how does it work?

A business loan is a collateral-free loan offered to self-employed individuals or business entities. Business loan can be used to meet business needs such as expansion, working capital, equipment purchase, or cash flow management.

Can women entrepreneurs apply for a Business Loan?

What are the benefits of availing a Business Loan from IDFC FIRST Bank?

What are the different schemes through which a Business Loan can be availed?

What does Business Vintage mean, and what is the minimum duration required?

What is the minimum CIBIL score needed to qualify for this business loan?

Do I require any security or guarantor to avail this business loan?

Which KYC documents will be required to apply for IDFC FIRST Bank Business Loan?

What are the different types of collateral-free loans offered under Business Loan?

How does a term loan facility work?

What is the range of business loan amounts, minimum and maximum, that I can apply for?

What is the maximum business loan tenure for an IDFC FIRST Bank Business loan?

What is the loan application process for business loan at IDFC FIRST Bank Business Loan?

How long will it take for my business loan to be processed?

How is Business Loan interest rate calculated?

What is Business Loan processing fee and how is it calculated?

What are the various business loan fees & charges?

Is there any stamp duty applicable for taking Business Loan?

What happens if there is no sufficient balance on the EMI deduction date?

When can I get a top up on my existing business loan?

What if I need a higher amount of loan amount as compared to my pre-approved offer loan?

Does IDFC FIRST Bank offer insurance for my Business Loan in case of an unforeseen event?

What is a Dropline Overdraft facility and how does it work?

How is Dropline Overdraft different from an overdraft facility?

How is the interest charged on the borrowed amount for a Dropline Overdraft facility?

How does the limit drop for a Dropline Overdraft facility?

Can I withdraw the entire sanctioned limit at once?

Can I repay the utilized amount before the end of the tenure?

What happens if my outstanding amount exceeds the reduced drawing power?

What happens when the tenure ends?

Is a Dropline Overdraft suitable for business requirements?

Why should I choose a Dropline Overdraft over a term loan?

Can I re-utilize the amount after repaying it?

How can I check my available drawing power and outstanding balance?

What is the loan interest cycle period?

Do I get charged for not utilizing the Overdraft account?

What are the under-utilisation charges?

What is Machinery Finance?

What is the maximum loan amount for machinery finance?

Is collateral required for machinery finance?

What documents are needed for machinery finance?

What is the maximum Tenure under machinery finance?

What are the different types of machines that can be funded under machinery finance?

More FAQs

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6 Mistakes to Avoid While Applying for a Business Loan

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Business Loan

Overview

Calculator

Rate & Charges

Dropline Overdraft

Machinery Finance

Eligibility

FAQs

Blogs

What is a Business Loan

₹7 Lakhs to ₹1 Crore

12 Months to 48 Months

Starting at 13%

Benefits of Business Loans

Expand Business Operations

Improve Cash Flow

Purchase Equipment

Manage Inventory

Collateral-Free Funding

Instant Loan Approvals

Features of Business Loans

Business Loan EMI Calculator

₹/-

Interest Rates & Charges on Business Loans

Rates & Charges

Dropline Overdraft

Key features:

CGTMSE Scheme for Collateral-Free Business Loans

Here are the notable features of the CGTMSE scheme:

Machinery Finance

Features & Benefits of Machinery Finance

Business Loan Eligibility

Eligibility Criteria to Apply for a Business Loan

Documents Required for Business Loan Application

How to Apply for a Business Loan?

Step 1

Step 2

Step 3

Step 4

Step 5

Business Loan FAQs

What is a Business Loan and how does it work?

Can women entrepreneurs apply for a Business Loan?

What are the benefits of availing a Business Loan from IDFC FIRST Bank?

What are the different schemes through which a Business Loan can be availed?

What does Business Vintage mean, and what is the minimum duration required?

What is the minimum CIBIL score needed to qualify for this business loan?

Do I require any security or guarantor to avail this business loan?

Which KYC documents will be required to apply for IDFC FIRST Bank Business Loan?

What are the different types of collateral-free loans offered under Business Loan?

How does a term loan facility work?

What is the range of business loan amounts, minimum and maximum, that I can apply for?

What is the maximum business loan tenure for an IDFC FIRST Bank Business loan?

What is the loan application process for business loan at IDFC FIRST Bank Business Loan?

How long will it take for my business loan to be processed?

How is Business Loan interest rate calculated?

What is Business Loan processing fee and how is it calculated?

What are the various business loan fees & charges?

Is there any stamp duty applicable for taking Business Loan?

What happens if there is no sufficient balance on the EMI deduction date?

When can I get a top up on my existing business loan?

What if I need a higher amount of loan amount as compared to my pre-approved offer loan?

Does IDFC FIRST Bank offer insurance for my Business Loan in case of an unforeseen event?

What is a Dropline Overdraft facility and how does it work?

How is Dropline Overdraft different from an overdraft facility?

How is the interest charged on the borrowed amount for a Dropline Overdraft facility?

How does the limit drop for a Dropline Overdraft facility?

Can I withdraw the entire sanctioned limit at once?

Can I repay the utilized amount before the end of the tenure?

What happens if my outstanding amount exceeds the reduced drawing power?

What happens when the tenure ends?

Is a Dropline Overdraft suitable for business requirements?

Why should I choose a Dropline Overdraft over a term loan?

Can I re-utilize the amount after repaying it?

How can I check my available drawing power and outstanding balance?

What is the loan interest cycle period?