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IIFL BUSINESS LOAN

IIFL BUSINESS LOAN

4.5

Max Tenure

09 to 60 Months

Best Rate

11.75%

Processing Fee

2%

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IIFL Finance Ltd. offers swift business loans tailored for small and medium-sized enterprises (SMEs). These loans are created to assist businesses in their growth by offering required capital.

You can apply for unsecured business loans with IIFL Finance starting at 12.75% per annum, and enjoy a loan tenure of up to 3 years.

IIFL Finance claims to offer a fully online loan application and approval process for SMEs. This means that businesses can apply for and receive approval for their loans in just minutes.

The maximum loan amount available is Rs. 50 Lakhs. The interest rate for these loans ranges from 12.75% to 44% per year.

IIFL Business Loan Eligibility

IIFL Finance sets the following eligibility criteria for business loans:

Business Entity:

  • The business must be a proprietorship, partnership, private limited company, limited liability partnership (LLP), or one-person company.

Individual Eligibility:

  • Salaried individuals aged between 23 and 65 years with a minimum monthly income of Rs 25,000 or more can apply.

Business Requirements:

  • The business needs to be running for at least 2 years.
  • Only businesses with a CIBIL or credit score of 700 and above are eligible.
  • The business must not be on any blacklist or exclusion list.
  • The business location must not be on the negative location list.

Ineligible Entities:

  • NGOs, charitable organisations, and trusts are not eligible for business loans.

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IIFL Business Loan Interest Rate 2025

Business loans from IIFL Finance feature competitive, variable-rate interest.

  • Loans up to Rs. 75 Lakhs: The rates of interest range from 12.75% to 44% annually.
  • The processing charge is 2% to 5% of the loan amount + GST.
  • A convenience fee of Rs. 500 is charged.

IIFL Business Loan Documents Required

To apply for an instant business loan online, you'll need to submit the following documents:

Basic Documents:

  • KYC Documents: Identity and address proof for you and any co-borrowers.
  • PAN Cards: PAN cards for you and all co-borrowers.
  • Bank Statements: Six months of bank statements for your main business account.
  • Standard Terms: The agreement, signed and specifying the terms of the term loan facility.

Additional Documents (Depending on the Loan Amount):

  • GST Registration: Proof of GST registration.
  • Bank Statements: Six months of bank statements.
  • Business Registration: Proof of your business registration.
  • PAN Card and Aadhaar Card: Of all business owners.
  • Deed Copy and Company PAN Card: For partnerships, a copy of the partnership deed and the company's PAN card.

Please note that additional documents may be required for credit assessment and loan processing.

IIFL Business Loan Application Process

1. IIFL Business Loan Online Application

To apply for a business loan, you'll typically need to submit an application, provide financial and business information, and undergo a credit check. Make sure you have necessary documents like tax returns, financial statements, and a business plan ready. You might also need to provide additional information during the approval process. Following loan approval, you'll proceed to sign the loan agreement.

Here's a step-by-step guide to the IIFL Finance business loan application process:

  • Apply Online: Press "Apply Now" and provide the necessary details in the application form.
  • Submit Documents: Complete your Know Your Customer (KYC) process by submitting all required documents.
  • Submit Application: Hit the "Submit" button to send your loan application.
  • Loan Disbursement: If your loan is approved, you'll receive the funds in your bank account within 48 hours.

2. IIFL Business Loan Offline Application

    1. Visit an IIFL Branch:

    • Find the nearest IIFL branch using their website or by contacting customer care.
    • Gather all necessary documents for your loan application.

    2. Obtain the Application Form:

    • Request an IIFL business loan application form from the branch.
    • Complete the form accurately, providing all required information.

    3. Prepare Required Documents:

    • Identity Proof: Aadhaar Card, PAN, Passport, or a recognised Driving License.
    • Address Proof: Utility Bill, Voter ID, or Rent Agreement.
    • Business Proof: GST registration proof, business registration certificate, or trade license.
    • Financial Documents: Last 6 months' bank statements, IT returns, or audited financials.
    • Photographs: Passport-sized photos of the applicant.

    4. Submit the Application:

    • Submit the completed application form and required documents to the IIFL branch representative.
    • The branch staff will review your documents and guide you through any additional requirements.

    5. Verification and Processing:

    • The IIFL team will confirm your documents and assess whether you qualify for the loan.
    • This may involve a site visit or discussions about your business and repayment capacity.

    6. Loan Approval and Disbursement:

    • A formal sanction letter specifying the loan terms will be provided if your loan is approved.
    • Following loan approval, the funds will be credited to your designated bank account.

    IIFL Business Loan for Startups

    IIFL Finance offers business loans, but their specific offerings for startups may have certain conditions. Typically, IIFL prefers to work with businesses that have a proven track record. Therefore, startups could be asked to show financial history, offer collateral, or submit a convincing business plan to qualify for a loan.

    If you're a startup without a history of operations, you might still be able to secure financing through these options:

    • Secured Loans: Collateral, such as property or equipment, must be offered for these loans.
    • Personal Loans for Business Use: If business-specific loans are unavailable, a personal loan could be used for business purposes.
    • Government Schemes: IIFL may facilitate government schemes like Mudra Loans, which can be beneficial for startups.

    Recommendation: For the most accurate and up-to-date information on IIFL's specific requirements for startups, it's best to contact them directly.

    IIFL Business Loan Process Time

    • Once you've submitted the required documents, the process will begin right away.
    • Verify that your documents are complete and correct to prevent any delays.
    • After your loan process is completed, the amount will be disbursed in your bank account within 48 hours.

    IIFL Business Loan Features and Benefits

    IIFL Finance offers hassle-free, instant business loans that require no collateral. Their simple online application process and minimal paperwork ensure quick loan approval, often within 48 hours. Here are some benefits of applying for an online business loan from IIFL Finance:

    • Quick Disbursement: Receive your loan quickly to take advantage of opportunities and keep your business running smoothly.
    • Improved Cash Flow Management: Optimise your cash flow by using a loan to bridge financial gaps and avoid cash shortages.
    • Enhanced Brand and Reputation: Invest in marketing and advertising to increase brand visibility and attract more customers.
    • Convenient and Easy: Get a hassle-free application experience with minimal paperwork and no collateral needed in some situations.
    • Competitive Interest Rates: Benefit from attractive interest rates to reduce borrowing costs and maximise your return on investment (ROI).
    • Stronger Credit Profile: Timely loan repayments can improve your business's creditworthiness, making it easier to secure future financing and attract potential investors.

    IIFL Business Loan Repayment Terms

    1. Loan Tenure:

    • Flexible Terms: Choose a loan tenure between 12 and 60 months to suit your business needs and cash flow.
    • Balancing Costs: Shorter tenures lead to higher monthly payments but lower overall interest costs. Choosing longer tenures means lower monthly payments, but it will raise the total interest costs.

    2. Repayment Mode:

    • Equated Monthly Installments (EMIs): Pay a fixed amount every month to cover both the principal and interest components.

    3. Prepayment/Foreclosure:

    • Early Repayment: The option to prepay your loan, partially or fully, is available before the loan term finishes.
    • Prepayment Charges: These charges vary based on the time of prepayment and specific loan terms, typically ranging from 2% to 5% of the outstanding amount.
    • Interest Savings: Strategic prepayment can help you save on interest costs.

    4. Late Payment Penalty:

    • Penalty Fees: A penalty fee will be charged if an EMI payment is missed.
    • Fee Calculation: The exact penalty depends on the overdue amount and the terms outlined in your loan agreement.

    5. Flexibility for SMEs and MSMEs:

    • Tailored Repayment Schedules: IIFL may offer flexible repayment options to align with seasonal cash flows and fluctuating revenues.
    • Customised Plans: Discuss your specific needs with IIFL during the loan agreement process.

    IIFL Business Loan Repayment Options

    Convenient Payment Options:

    Online Payments:

    • Net Banking: Make payments directly from your net banking account.
    • Mobile App: Use the IIFL Loans mobile app to pay your loan conveniently.

    Branch Payments:

    • Visit your nearest IIFL branch to make cash or cheque payments.

    IIFL Business Loan Calculator

    Before taking on a business loan, it's crucial to understand the concept of EMIs (Equated Monthly Installments). EMIs represent the fixed monthly payment you'll make to the lender, covering both the principal amount borrowed and the interest accrued.

    Key Factors Affecting EMIs:

    • Loan Amount: Bigger amounts will attract higher EMIs.
    • Interest Rate: The higher the interest rate, the more substantial your EMI will be.
    • Loan Tenure: A longer tenure means smaller EMIs, but you'll end up paying more interest over time. Going for a shorter loan term means higher EMIs, but a reduced total interest expense.

    Using an EMI Calculator: To estimate your monthly payments, you can use a business loan EMI calculator. Input the loan amount, interest rate, and tenure to quickly determine the accurate figure.

    Example:

    Loan Details:

    • Loan Amount: ₹10,00,000
    • Interest Rate: 15% per year
    • Loan Tenure: 5 years (60 months)

    Calculation Breakdown:

    • Monthly Payment (EMI): ₹23,789
    • This is the fixed amount the borrower will pay each month.
    • Total Interest Paid: ₹4,27,395
    • This figure reflects the total interest cost over the 5-year period.
    • Total Amount Repaid: ₹14,27,395
    • This is the total amount that you as a borrower will pay, including the principal and interest.

    Formula for Calculating EMI:

    EMI = (P * r * (1+r)^n) / ((1+r)^n - 1)

    Where:

    • P: Principal loan amount (₹10,00,000)
    • r: Monthly interest rate (Annual interest rate / 12 = 15% / 12 = 0.0125)
    • n: Loan tenure in months (5 years * 12 months/year = 60 months)

    Disclaimer: All the features, interest rates, steps, and other information specified above are sourced when this page was written and are subject to change. For exact information, refer to the IIFL’s website or contact them.

    IIFL Business Loans – FAQs:

    1. What is the interest rate for an IIFL business loan?

    IIFL business loans come with interest rates starting at 12.75% and going up to 44% per annum.

    2. What is the top loan amount you can access through IIFL?

    IIFL offers business loans up to ₹50 Lakhs for eligible borrowers.

    3. How long does it take to get loan approval from IIFL?

    Loan approval from IIFL can be received within minutes for online applications, with funds disbursed in 48 hours.

    4. What is the loan tenure for IIFL business loans?

    The loan term for IIFL business loans falls between 12 and 60 months.

    5. Can startups apply for an IIFL business loan?

    Startups may qualify for loans if they demonstrate financial history, collateral, or a strong business plan.

    6. What documents are required to apply for an IIFL business loan?

    Applicants need to submit KYC documents, PAN cards, six months' bank statements, and business registration proof.

    7. How can I apply for an IIFL business loan?

    You can apply online through the IIFL website or offline by visiting a nearby IIFL branch.

    Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.

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    CreditMantri Finserv Private Limited

    CIN No

    U72100TN2012PTC085154

    IRDAI Registration Number

    CA0665

    Valid Till

    01-Aug-2025

    ADDRESS

    CreditMantri Finserve Private Limited Unit No. B2, No 769, Phase-1, Lower Ground Floor, Spencer Plaza, Anna Salai, Chennai - 600002

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