Business Loan
Expand Your Business with IIFL Business Loan
26 Mar 2019 5 min
Business Loan: Expand Your Business with IIFL Business Loan

IIFL Holding Limited (Indian Infoline Limited) is an Indian financial service company whose headquarter is in Mumbai. IIFL was founded on October 17, 1995, by Nirmal Jain. Initially IIFL was Probity Research and Services company providing research on the Indian economy, businesses and corporate. In today’s scenario, IIFL becomes India’s leading financial service group which works in diversified fields. For instance, it helps in operating business mainly non-banking and Housing Finance, Investment Banking, Institutional Equities and many more. Euromoney has awarded IIFL as the Best Private Banking in overall India in 2017. It is also awarded as the Best Private Bank in India at the Global Finance Best Private Bank awards in 2017.

Have You Checked the IIFL Business Loan?

IIFL offers business loan up to 60 months of the loan tenure. This makes up the easy monthly installments for about 2,275 per lakh, which is easily payable by the business loan borrower. Lowest Interest rate which was offered by the IIFL against the business loan is 18.00%. IIFL retrieve money from the borrower in the form of EMI which is a fixed amount of money which you have to pay back to the bank against the loan taken. At every month, it is fixed at certain date and you have to pay it until your loan is fully repaid.

Following table shows the breakup of the 10 lakh loan provided by the IIFL at 18.00% interest rate.

 

1 year

2 year

5 year

IIFL EMI for loan amount of Rs. 10 lakh at 18.00%

Rs. 91,680

Rs. 49,924

Rs. 25,393

Total amount you pay back to the bank including principal and interest

Rs. 11 Lakh

Rs. 11.98 Lakh


Rs. 15.23 Lakh

 

Interest you have to pay over loan tenure

Rs. 1 Lakh

Rs. 1.98 Lakh

Rs. 5.23 Lakh

The analysis of the above table suggested that the longer you keep the money with you less will be the EMI which you can easily pay but on the contrary, the amount of interest rate has increased significantly. So, this will suggest that you need to choose your plan and loan tenure wisely and judiciously such that you will not end up paying the more and more interest rate than the required one.

What are the factors affecting IIFL Business Loan?

Mainly the three factors are solely important in affecting any business loan or any other type of loan which are the amount of loan lend, interest rate and the loan tenure

  1. Loan amount: Loan amount is the sum of money which IIFL have offered to you. IIFL provides the minimum business loan of Rs 1 lakh which can be extended up to Rs 50 lakh.
  2. Interest rate: IIFL Personal Loan starts 18.00% onwards. If you have good credit history, you can get the loans easily.
  3. Loan tenure: This is the period in which you have to pay back the amount along with the interest to the bank in the form of EMI’s. The longer the loan tenure the lesser will be the EMI but the interest rate will increase. The loan tenure which IIFL offered to the borrower is for business loan is up to 60 months.

IIFL offers three products for SME Loans

  1. Insta loan upto Rs 10 lakh
  2. Fast track loan upto Rs 20 lakh
  3. Business Loan upto Rs 50 lakh

           IIFL Business loan Calculator Formula

P*r*(1+r)^n/([(1+r)^n]-1) 
So, this is the formula through which you can calculate the IIFL business loan interest rate.

This illustration shows that:

P: Principal amount which lasts up to Rs 50 lakhs.

R: Rate of interest which is 18.00%

N: loan tenure, which is 60 months for the IIFL.

Business loan interest rate:

Here is the list at the charges levied by the IIFL against your loan amount.

Rate of Interest

18 to 25% p.a.

Processing fee

Upto 3% of the loan amount

Charges on late payments

2% per month on overdue amount from date of default

Prepayment Charges

4% of the outstanding amount

PDC/ECS/ACH dishonor Charges

Rs500/- per instance

PDC/ECS/ACH swapping charges

Rs500/- per instance

Stamp Duty & other statutory charges

As per applicable laws of the State

Note: GST and other Government taxes, levies etc. applicable as per prevailing rate will be charged over and above the Fees and Charges

IIFL Business Loan Application:

The standard IIFL Business loan application form includes the following sub forms:

  1. Form A: It includes the Personal details. In this form, you have to declare that you are the applicant, co- applicant or guarantor and other personal details which are required for eligibility.
  2. Form B: It includes employment and income details. In this section, you need to declare that you are salaried or self-employed or running a business.  It included everything related financially.
  3. Form C: This is the Declaration. This section is more about terms and conditions which you need to read carefully and signed. It can be signed by all the parties along with the date and time.

Documents required for the IIFL Business loan:

  • Age proof
  • ID proof
  • Application form
  • Photograph
  • Residence proof
  • Income proof
  • Bank statement
  • Signature verification proof
  • Pro-forma Invoice or Rate List
  • All of the above is subject to terms and conditions

Eligibility and other document check list before applying for IIFL Business Loan:

For salaried Individuals:

  • Minimum 21 years of age
  • Maximum 70 years of age at maturity (conditions apply)
  • Minimum Net Annual Salary of Rs. 2,40,000 p.a. for all approved car models
  • Income eligibility based on latest salary slip and Form 16
  • Minimum of 1 year continuous employment

For self-employed individuals:

  • Minimum 18 years of age
  • Maximum 75 years of age at loan maturity
  • Minimum Net Annual Business income of Rs. 1, 80,000 p.a. for selected models and Rs. 2, 00,000 p.a. for others.
  • Income eligibility based on latest Income Tax Returns
  • Minimum 3 years of employment in the same line of business

If we have a glance on the product wise documentation, then we need the following documents for the following products –

Insta Loan

    1. Duly filled in application form with a recent passport size photograph
    2. As per RBI guidelines, KYC documents
    3. ITR for the last 2 years
    4. Bank statements for the last 6 months
    5. Additional documents, for credit assessment and loan processing

Fast Track Loan –

    1. Duly filled in application form with a recent passport size photograph
    2. Address & ID Proof as per RBI guidelines
    3. Financial statements and IT Returns for the last 3 years
    4. Sales tax/VAT Returns/GST Returns for the last one year
    5. Bank statements for the last 6 months
    6. Copies for the Property documents
    7. Additional documents, for loan processing and credit assessment

Business Loan –

  1. Duly filled in application form with a passport Size recent Photograph
  2. ID Proof & Address Proof as per RBI guidelines
  3. GST Challans/ VAT Returns/last year ITR
  4. Bank Statements for the last 3 months
  5. Additional documents, for loan processing and credit assessment

FAQs

  1. How much one can avail as a business loan from IIFL?

         Loans are available ranging from Rs 1 lakh to Rs 50 lakh

      2. What is the tenure for the business loans?

The loan tenure can vary between 1 to 4 years

  1. Is there any requirement for security/collateral for availing the loans

         No, there is no requirement of the collateral.

  1. Is the interest rate for IIFL Business Loan fixed or floating?

The interest rate is fixed

  1. How SME loan can be repaid?

         SME loan can be repaid in monthly installments. Here, you can compute your business loan eligibility

  1. What is mode for the repayment?

          The repayment can be done via Electronic Clearance Service (ECS) or Direct Debit.

  1. How you can avail a SME Loan?

       To avail a SME Loan, Apply here

IIFL has an exclusive tie-up with afinoz.com. If you are looking for a business loan then you can simply log on to Afinoz.com to check your business loan eligibility and apply for a loan. At each step of the application process, Afinoz.com allows it's applicant to keep track of the status of their application in real-time via SMS as well as through emails. Due to such simplified and fast processing, Afinoz.coam has become a popular option among a large number of business owners.

References:

https://www.iifl.com/sme-loans

https://www.afinoz.com/iifl-business-loan

https://www.myloancare.in/business-loan-emi-calculator/iifl

http://www.squarecapital.co.in/banks/india-infoline/business-loan

https://loanyantra.com/business-loans/iifl-business-loans-apply-online.aspx