Secured Business Loan

A Secured Business Loan is a financial solution that allows individuals and businesses to leverage their owned property to secure funds. Whether you need capital for business expansion, debt consolidation, or working capital needs, SBL offers flexibility and attractive terms. IIFL Finance provides a seamless borrowing experience with competitive interest rates, quick approvals, and minimal documentation requirements.

Here’s everything you need to know about secured business loan, including eligibility, interest rates, documentation, and more.

What is a Secured Business Loan?

A secured business loan is a secured loan where borrowers pledge residential or commercial property as collateral. The loan amount is determined based on the property’s market value and the borrower’s repayment capacity. This makes secured business loan an excellent option for meeting substantial financial needs without liquidating assets.

IIFL Finance caters to a variety of financial goals, including:

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Business Expansion

Use the funds to scale operations, purchase equipment, or hire staff.

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Working Capital Needs

Manage day-to-day business expenses efficiently.

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Debt Consolidation

Simplify multiple debts into a single manageable loan.

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Business Investment

Capitalize on opportunities with readily available funds.

Loan Details and Key Features

Loan Amount Ranges from ₹3 Lakh to ₹3 Crore, catering to diverse financial needs.
Tenure Flexible repayment options from 12 to 180 months, making it easy to manage cash flow.
Interest Rate Starting from 11.00%*, offering one of the lowest interest rates in the market.
Processing Fee Up to 5% of the loan amount + GST.
Prepayment Charges 5% of the outstanding principal after 6 EMI payments.

With IIFL Finance, you can also use their secured business loan EMI calculator to estimate monthly repayments, helping you plan better.

Documents Required for Secured Business Loan

To simplify the application process, IIFL Finance has outlined a clear set of requirements:

  1. Application Form: Complete and sign the form.

  2. KYC Documents: ID and address proof for borrowers and co-borrowers.

  3. PAN Card: For both borrower and co-borrowers.

  4. Signature Verification: From the borrower and co-borrowers.

  5. Property Documents: Ownership proof and valuation reports.

  6. Bank Statements: Last 6 months’ business account statements.

Additional documents may be required for secured business loan eligibility assessment, especially if applying for a secured business loan or without income proof.

Secured Business Loan Interest Rates and Charges

The secured business loan interest rates starts at 11.00%*, making it an attractive option compared to personal or unsecured loans. Other charges include:

Fees / Charges Fees / Charges (% / ₹ )
Processing Fees up to 5% of the loan amount
IMD Charges 1
(Initial Money Deposit)		 ₹ 3,000 (non-refundable)
Nach / e-mandate bounce Charges
(Header Updated)		 ₹ 2,500
Penal / Default Charges2# 2% p.m.(24% p.a)
Cancellation charges ₹ 5,000
Legal Charges As per Actual
Stamp Duty As per Actual
Foreclosure Charges - Before 1st 6 EMI: Foreclosure not allowed
- After 1st 6 EMI: 5% of the principal amount
Part Payment Charges - Nil
Switching Fees
(floating to fixed rate)3		 1% of the of the principal outstanding and undisbursed amount if any + plus GST.
The company would charge an additional interest rate risk premium of 250 bps over
the applicable rate of interest on the borrower’s loan account as on that date.***
Switching Fees
(fixed rate to floating rate)3		 1% of the of the principal outstanding and undisbursed amount if any + plus GST ***
Switch fee for ROI change 2% of the of the principal outstanding + GST
Cooling off Period

The borrower shall have the explicit option to exit
the digital loan during the initial “cooling-off period” by repaying the principal
along with the proportionate APR, without any penalty. In case the customer exits
the loan during the cooling-off period, the Company may retain a reasonable
one-time processing fee.

7 Days
NESL Charges As per Actual
  1. In case of disbursement, this charge will be adjusted towards Processing Fees
  2. Levied on principal outstanding. Penal charges will not be levied on the outstanding penal due amount.
  3. Three conversions permissible throughout the loan tenure.

Key Benefits of Secured Business Loan with IIFL Finance

  1. Quick Approvals: Fast processing ensures that funds are available when needed.

  2. Higher Loan Limits: Borrow up to ₹3 Crore based on property value and eligibility.

  3. Competitive Interest Rates: One of the lowest secured business loan interest rates, making borrowing affordable.

  4. Flexible Tenures: Choose repayment terms that align with your financial capabilities.

  5. Simple Documentation: Hassle-free application process with minimal paperwork.

Eligibility for Secured Business Loan

IIFL Finance offers loans to business owners in the manufacturing, trading, and service sectors with at least 12 months of operational history. Your eligibility depends on factors like credit score, income, property type, and repayment capacity.

For those concerned about proof of income, IIFL also provides options for a secured business loan without income proof, subject to additional assessments.

To check how much you can borrow, use a secured business loan emi calculator, which evaluates eligibility based on property value, income, and tenure.

Why Choose IIFL Finance for Secured Business Loan?

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Tailored Solutions

Whether for business or personal use, IIFL offers customized SBL options.

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Tech-Enabled Services

Use the secured business loan EMI calculator to determine repayment plans instantly.

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Reliability

IIFL is a trusted name with a proven track record in financial services.

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Ease of Access

Apply online or visit a branch for personalized assistance.

Key Considerations

Before applying for a secured business loan, keep the following in mind:

  1. Ensure your property valuation aligns with your funding needs.

  2. Use a secured business loan eligibility calculator to determine qualification criteria.

  3. Factor in charges like prepayment fees and penalties to avoid surprises.