Business Loan

The MSME loan interest rate differs from lender to lender. While banks charge lower rates compared to NBFCs, the application is processed faster by NBFCs. The current rate of interest is up to 36% per annum.

An MSME business loan is offered to Micro, small and medium enterprises.

Yes, it benefits the business as you can use the funds to invest in the business and ensure smooth operations.

If your business fulfils the eligibility criteria mentioned above, you can get a business loan for your SME from IIFL Finance.

Yes, part payment is allowed. However, as it varies from lender to lender, you should ensure the lender has this facility.

Proprietorship, Partnership and Pvt. Ltd/ LLP /One Person Company can avail of a business loan.

With IIFL Finance, you can take a loan of up to Rs 75 lakhs

Yes, a salaried employee can apply. The minimum age of the applicant must be 23 years and the maximum age must be 65 years. The applicant must have a monthly income greater than Rs 25,000.

You can apply by filling in the online loan application and uploading the required KYC documents.

Yes, the Prepayment / Foreclosure (01-06 months of EMI repayment) charges are 7%+ GST.

IIFL Finance seeks a CIBIL score, more than 700 to grant a business loan to borrowers.

No, IIFL Finance doesn’t allow any change in the due date of the EMI once the loan agreement has been signed.

You can check the status of your loan application at the time of filling up the form or you can call us at 022-62539302 to find out.

Yes, you can. A business loan can be used for a variety of purposes including for paying vendors, buying inventory and managing working capital.

Not necessarily! Business loans often fall under the unsecured loan category, meaning you don't need to pledge any assets like property or equipment as collateral. However, this depends on various factors like the loan amount, your business's financial health, and your creditworthiness. Some lenders might require a personal guarantee, especially for larger loans or if you're a new business. It's always best to check with the specific lender you're interested in to understand their requirements.

The diverse world of business loans caters to various needs. Here's a breakdown of some common types:

• Term Loans: These provide a lump sum upfront for specific purposes like expansion, equipment purchase, or working capital.
• They have fixed interest rates and regular repayments over a set period.
• Cash Credit: This flexible option offers a credit line you can draw on as needed, similar to a credit card for businesses.
• Interest is charged only on the utilized amount.
• Business Loan Against Property: If you own property, you can secure a loan against its value, often at lower interest rates than unsecured loans.
• Unsecured Business Loan: As mentioned earlier, these loans don't require collateral, but may have higher interest rates due to the increased risk for the lender.
• Startup Loan : Designed specifically for new businesses, these loans often come with smaller amounts, flexible terms, and mentorship programs.
• Project Loans: Cater to specific business projects with defined goals and timelines.
• Working Capital Loan: Helps bridge the gap between your day-to-day expenses and income.
• Invoice Financing: Gets you immediate cash by selling your outstanding customer invoices at a discount.
• Equipment Financing: Acquire essential equipment without upfront costs through specialized loans.
• Business Loan for Women: Many lenders offer loans specifically tailored to women entrepreneurs, often with attractive interest rates and flexible terms.
• Business Overdraft: Similar to a personal overdraft, this allows you to exceed your business account balance up to a set limit.
• Business Credit Card: Offers convenience and rewards for business expenses but manages it responsibly to avoid high-interest charges.
• Cash Advance for Merchants: Get quick access to funds based on your credit card sales, but be aware of the high fees associated with this option.
• Agriculture Loan: Cater to the specific needs of farmers and agribusinesses.
• MSME Loans: Support small and medium-sized enterprises with government-backed schemes and loans with favorable terms.

Documents for 10 lakhs:

1. KYC documents – Identity proof and address proof of the borrower and all co-borrowers
2. PAN Card of borrower and all co-borrowers
3. Last 6 months bank statement of main operative business account (12 months preferable to avail maximum loan amount)
4. Signed copy of standard terms (term loan facility)
5. Additional document(s) may be required for credit assessment and processing of loan request

Documents for 50 lakhs:

1. KYC documents – Identity proof and address proof of the borrower and all co-borrowers
2. PAN Card of borrower and all co-borrowers
3. Last 12 months bank statement of main operative business account
4. Signed copy of standard terms (term loan facility)
5. Additional document(s) may be required for credit assessment and processing of loan request
6. GST Registration.

Business Loan Eligibility checklist that you need to fulfil:

1. You should be self-employed. Professionals such as doctors and CAs, and proprietorship concerns can also apply.
2. You should have a credit score, or CIBIL of 700 and above.
3. Your business should be operating for at least six months at the time of applying for a loan.
4. Your office location should not be on any negative list.
5. Your business should not fall under any list of blacklisted businesses.
6. Charitable organisations, NGOs, and trusts are not eligible for a business loan.

Yes, you can apply for an IIFL business loan online through the IIFL Finance website or IIFL Loans App.

When you apply for business loans by IIFL Finance, you can apply for a minimum loan amount of Rs 2,00,000 and a maximum loan amount of Rs 75,00,000

Submit all the relevant documents needed for completing KYC. Click on the “Submit” button to complete the loan application process. After review, IIFL Finance will approve the loan in up to 48 hours* and disburse the amount within 1-2 hours* into the borrower's bank account.

*Subject to submission of all requirement documents and customer confirmation

**Subject to customer signing loan agreement and NACH on time

Yes, (IIFL) charges a prepayment penalty, also known as foreclosure charges, for business loans if you pay back the loan before the term ends. The prepayment penalty depends on how long it's been since you first drew down the loan:
Within 6 months: 7% of the outstanding loan amount plus taxes
7th–24th month: 5% of the outstanding loan amount plus taxes
After 24 months: 4% of the outstanding loan amount plus taxes