MSME Loans from IDFC First Bank
IDFC First Bank came into existence when Capital First and IDFC Bank merged in 2018. The bank offers a range of finance products to different segments of its customer base to meet their specific needs. As of now, the bank offers 5 MSME loans in addition to non-funded services to small businesses.
The MSME loans from IDFC First Bank are:
- Term Loan
- Working Capital Loan
- Project Finance
- Trade Finance
- Corporate-linked Finance
We give you a brief intro to these MSME loans below.
IDFC First Bank Term Loan
This loan helps businesses get financial assistance to meet their short-term and long-term business needs. Borrowers can avail this loan for setting up a business or for expansion of the existing business.
Features of IDFC First Bank Term Loan
Why this Loan?
- This business loan is meant for small businesses to obtain funds for business expansion or acquisition of business assets
- The bank decides the loan amount to be sanctioned under the IDFC First Bank Term Loan on a case-to-case basis after assessing the loan application
IDFC First Bank Working Capital Loan
The IDFC First Bank Working Capital Loan helps businesses finance their everyday operations such as for investment in current assets, purchase inventory, salary payments, power charges, etc. This a perfect loan scheme for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects.
Features of IDFC First Bank Working Capital Loan
Why this Loan?
- This business loan can be taken for managing day-to-day operations related to running the business
- This is a need-based loan
IDFC First Bank Project Finance
IDFC First Bank offers the Project Finance loan scheme as an umbrella loan scheme to help businesses to meet the needs of an ongoing project or meet a new project.
Features of IDFC First Bank Project Finance
Why this Loan?
- The IDFC First Bank Project Finance is meant for you if your business needs funds to run an ongoing project. We suggest getting in touch with the bank to know the type of projects eligible for this loan
- This bank may extend the facility as a subordinated debt, loan against share, etc.
IDFC First Bank Business Loan for Trade Finance
This loan helps businesses pay for pre-shipment, post-shipment, and other activities directly related to the trade business. Please get in touch with the bank to get a list of all activities eligible for this loan.
Features of IDFC First Bank Trade Finance
Why this Loan?
- The IDFC First Bank Trade Finance Loan is meant for you if your business needs funds for any activity directly related to your trade business whether it is pre-shipment or post-shipment
- The bank extends this loan at pre-shipment as well as post-shipment stage in Indian currency and foreign currency
IDFC First Bank Corporate-linked Finance
This is an umbrella loan scheme to help small businesses i.e. vendors and dealers in the supply chain get access to funds to meet their needs. The bank has a dedicated team for Corporate Linked Finance loans.
Features of IDFC First Bank Corporate-linked Finance
Why this Loan?
- The IDFC First Corporate-linked Finance loan scheme is perfect for supply chain vendors and dealers to meet their working capital and capital expenditure needs
- All the dealer finance and vendor finance schemes are available in flexible models such as anchor-driven, vendor-driven, etc.
Important Note: Even though the bank’s website has information available for a few loan schemes at this time, there is a possibility that the bank may offer more corporate loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.
Interest Rate for IDFC First Bank Business Loans
- The interest rate for the IDFC First Bank business loans depends on various factors such as quantum of loan, type of business, risk rating, nature of project, repayment period, structure of debt, etc. The applicable interest rate for each loan is not mentioned on the IDFC First Bank website. Please get in touch with a bank representative for details
Eligibility for IDFC First Bank Business Loans
- Individuals, Proprietors, Partnership Firms, Private Limited and Public Limited Companies can apply for these loans
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issue Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- A4 size copies of the aforementioned documents must be self-attested with blue ink
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- All A4 size copies of the aforementioned documents must be self-attested with blue ink
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
- All A4 size copies of the aforementioned documents must be self-attested with blue ink
Reference Facts:
- IDFC First Bank Website: www.idfcfirstbank.com and www.capitalfirst.com (old website)
- Headquarters: Mumbai, Maharashtra
- Call Centre Number: 1860 500 9900