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Unsecured Business Loan

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Status: Active

Classification: Private Sector Scheme

Release Date(s):
6th January 2024

Offering: Loan/Credit

Entity Type: Private Sector Bank

Reading Time: 5 Mins

Ticket Size: ₹10 Lakhs - ₹1 Crore

Entity Name: IDFC First Bank

#Views: 88

Disclaimer….before you read ahead!

The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updating, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.

Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.

 

About this scheme…

Unsecured Business Loan was launched by IDFC FIRST Bank to help entrepreneurs upscale their business by catering to their diverse financial needs.

 

How is it being implemented?

Under this Unsecured Business Loan, direct financial assistance in the form of loans is given to self- employed individuals and business entities.

 

What’s on offer?

I. Product
  • Term loan, Overdraft
  • Ticket size: ₹10 Lakhs to ₹1 Crore

 

II. Purpose:
  • Acquisition of fixed assets
  • Working capital requirements

 

III. Borrower Type:
  • Sole Proprietors, Partnership firms, Limited Liability Partnership (LLP), Private Limited Company etc.

 

IV. Security or Collateral or Guarantee or Insurance
  • Primary Security: First charge may be created on assets financed by IDFC First Bank. For more details on this, please contact IDFC First Bank via means mentioned below
  • Collateral: Nil
  • Guarantee: Nil
  • Insurance: For more information on requirement of insurance, please contact IDFC First Bank via means mentioned below
  • Co-applicant: would be a must

 

V. Interest Rate
  • 15% p.a onwards, depending on borrower’s risk profile based on business reputation, revenue, cash
    flows & balance sheet, repayment record, running business loans and relationship with the Bank. For more information on the applicable interest rates, please contact IDFC First Bank via means mentioned below

 

VI. Processing Fee
  • Up to 3.5%
  • For an overdraft facility, an additional annual charge called Annual Maintenance Charge (AMC) of 0.25% of the limit will be levied

 

VII. Margin Money Requirement
  • For more information on margin money requirement, please contact IDFC FIRST Bank via means mentioned below

 

VIII. Tenure, Repayments & Pre-Closures
  • Tenure: 12 – 48 months
  • Repayment: monthly
  • Pre-Closure: A charge of 5% of principal outstanding. For more information on applicable schedule of charges, please refer to here

 

IX. Turnaround Time
  • Turnaround time to disburse loans would be 6-7 days post submission of required documents
  • However, funding of upto ₹50 Lakhs loans could be quicker based on borrower’s current account statement & GST returns

 

Interested? Read ahead to check your eligibility….

I. Has your business been in operations for atleast 3 years?

 

II. Is the annual turnover of your business at least ₹1 Crore?

 

III. Would the applicant be between 28 – 68 years old at the time of loan maturity?

 

If your answers to the questions above are an emphatic YES, you are all set to avail IDFC FIRST Bank’s Unsecured Business Loan!

 

Note: Please note that the above-mentioned eligibility criteria is preliminary following which the borrower will be assessed on:

 

IV. Derived income & net profit of the business

 

V. Average bank balance

 

VI. Annual business turnover on the basis GST returns

 

For more information on these, please contact IDFC FIRST Bank via means mentioned below.

 

So…how big is this scheme and what has been done so far?

I. Latest details on the Scheme don’t seem to be available in the public domain

So, now, how should you go about it?

I. Submit your application here:

 

II. For information on indicative list of document required, please scroll down here and look for Documentation

 

III. For FAQs on the loan, please refer here

 

IV. For any queries, please contact IDFC FIRST Bank via

 

Go on then…and do spread the word!

 

Sources:

1. About the Scheme

2. IDFC FIRST Bank’s Annual Report 2022-23

3. IDFC First Bank’s Latest Investor Presentation Q2 2023-24

4. IDFC FIRST Bank’s Latest Credit Rating Report

 

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