IIFL Finance Business Loan

Below are the details about the IIFL Business Loan rate of interest -

Here are the key features of IIFL Finance business loan -

Quick Disbursal:

IIFL Finance Business loans are known for their quick disbursal process, which enables you to receive the loan amount quickly. This helps you run your operations smoothly or execute your business expansion plans without any delay.

Better Cash Flow Management:

This business loan from IIFL Finance can provide you with the flexibility necessary to manage your cash flow. By using the loan to cover your expenses, you can extend your expenditures over time, avoiding financial difficulties and maintaining stability.

Building Brand and Reputation:

By getting your IIFL Finance business loan you can start Investing in marketing, advertising, and other promotional activities which can help you build a brand and reputation. This business loan can provide you with the necessary funds to carry out these activities and attract new customers, thus expanding your business.

Convenient and Easy Paperless Documentation:

Getting an IIFL SME loan is now more convenient and easy than ever before. With minimal paperwork and doorstep services offered by various lenders, you can now avail of a loan without any hassle.

Competitive Interest Rates:

IIFL Business loans with competitive interest rates help you save money on borrowing costs. This allows you to use those savings to invest in business growth and expansion. These low-interest loans also make it easier for a company to manage its cash flow and maintain financial stability.

Improved Business Credit:

Regular payments on your IIFL Finance business loan can help improve your business’s credit rating, making you eligible for credit in the future. This demonstrates that you are financially responsible, increasing your credibility in the market.

If you are a budding entrepreneur looking for a business loan, you would surely want to avail it at the lowest possible interest rate. However, the interest rate on business loans can vary depending on various factors, such as your credit score, credit history, financial blueprint, and the lender's reputation. Here are some tips that can help you avail a business loan at a lower interest rate:

Maintain a Good Credit Score

One of the most important factors that lenders consider while deciding the interest rate on your business loan is your credit score. A high credit score indicates that you are a responsible borrower and are likely to repay the loan on time. Therefore, it is essential to maintain a good credit score of at least 750 out of 900 to increase your chances of getting a business loan at a lower interest rate.

Maintain a Good Credit History

In addition to a good credit score, lenders also consider your credit history. If you have defaulted on any payments in the past, it can negatively impact your credit history, and lenders may charge a higher interest rate on your business loan. 

Have a Consistent Source of Income

Lenders want to ensure that you have a consistent source of income to repay the loan. Therefore, it is essential to have a financial blueprint that showcases your income and expenditure. This will help the lender assess your repayment capacity and offer you a lower interest rate.

Use Online Tools and Calculators

Before applying for a business loan, it is advisable to use online tools and calculators to determine the interest rate and the EMI amount that you can afford. This will help you choose a loan that is affordable and does not strain your finances.

Here are the key eligibility criteria for IIFL Finance business loan -

• Your business should have been established and operating for more than 2 years at the time of application.
• The business should not be blacklisted or excluded from any category or list.
• The office or business location should not be on the negative location list.
• Charitable organizations, NGOs, and trusts are not eligible for a business loan from IIFL Finance.

Here are the factors that affect IIFL Finance business loan eligibility -

• The disbursal amount depends on parameters such as business profile assessment, financial assessment, repayment capacity, and respective segment cap.
• IIFL Finance assesses your business profile, including factors such as the type of business, its vintage, turnover, and creditworthiness.
• Evaluation of your financials, including your cash flow, profitability, and debt-to-equity ratio, to determine your repayment capacity.
• IIFL Finance may have different segment caps that limit the maximum business loan amount that can be disbursed to businesses in certain industries or sectors.

There is no generic documentation requirement list as such but the documents required for IIFL business loan depends on the magnitude of your business loan amount.

Documents for 10 Lakhs

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

Documents for 30 Lakhs

• KYC documents – Identity proof and address proof of the borrower and all co-borrowers.
• PAN Card of borrower and all co-borrowers.
• Last 12 months bank statement of main operative business account.
• Signed copy of standard terms (term loan facility).
• GST registration certificate
• Additional document(s) may be required for credit assessment and processing of loan requests.

The business loan application process is as follows.-

• Click “Apply Now” and complete the application form on this page.
• ‌ Complete the KYC by submitting all required documents.
• ‌Click the "Submit" button to submit your loan application.
• ‌If the lender approves your loan, we will deposit the money into your bank account within 48 hours after approval.