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Having launched its operations in 1964, IDBI Bank provides retail banking services, specialising in industrial finance operations. Through its business loans, it caters to the financial requirements of MSMEs and agricultural sectors.

The IDBI Bank Business Loan is tailor-made to suit the varying business requirements of entities at affordable interest rates between 8.05% and 13.45% p.a. With the IDBI Business Loan, self-employed professionals and small business firms can avail quick funds.

  • Here are a few features of the IDBI Bank Business Loan:

  • Choose a loan repayment tenure of 1-5 years based on your repayment ability

  • Avail up to ₹2 Crores at a nominal IDBI Business Loan interest rate starting from 10.95% p.a. onwards

  • Pay only 1% processing fees with applicable service tax when availing an IDBI Business Loan

  • Enjoy the benefits of zero foreclosure charges after paying 6 EMI payments


With all these and many more, the IDBI bank business loan has been curated considering the financial needs of various business verticals. Read on to know more.

IDBI Bank Business Loan Interest Rate & Charges

Starting your company or planning to expand your existing line of business is a common ambition for many. The IDBI Bank business loan offers assistance to all such firms and aspiring individuals.

IDBI business loans are offered to self-employed professionals, MSMEs, and small firms at varying interest rates. Given below is a table for IDBI business loan interest rate and other charges:

Interest rate

8.05% p.a. onwards

Processing fee

Loan amount up to ₹50,000 – Nil

Beyond ₹50,000 – 0.50% of the loan amount

Late payment of EMI charges

2% p.a. of the outstanding amount

Pre-closure charges

2% of the outstanding loan amount if within 6 months

Nil after 6 months of disbursement

**Disclaimer: The above interest rates and charges are subject to change at the lender’s discretion.

With a nominal business loan interest rate in IDBI Bank, this credit facility helps cater to your business requirements. Among its lending options are term loans, cash credits, overdrafts, bill discounting, letters of credit, and bank guarantees.

IDBI Bank Business Loan EMI Calculator

It is important to calculate your EMIs before you apply for a business loan. With the IDBI Bank business loan EMI calculator, you can compute monthly payments easily and accurately.

All you need to do is enter your loan amount, the interest rate, and the duration of the loan. Just a simple click and you get the EMI amount you need to pay! Besides this, the IDBI Bank Business Loan EMI Calculator is fairly easy to access and is available for use at any time for free.

This calculator helps you estimate EMIs that fit your business’ capabilities, without straining the working capital. It also assists you in determining the amount of loan you may need for your business. This way, you can plan your business budget accordingly.

IDBI Bank Business Loan Documents

To avail this loan, you will need to submit the following IDBI Bank business loan documents along with the application: 

  • PAN Card of your business, firm, or self

  • Any one proof of identity (Aadhaar, PAN Card, Driving Licence, Passport, Voter ID)

  • Any one address Proof (Utility Bills, Aadhaar, PAN Card, Driving Licence, Passport, Voter ID)

  • Last 6 months’ bank statement

  • Proof of Business 
  1. Sole Property Declaration

  2. Certified true copy of Memorandum & Articles of Association (certified by the Director)

  3. Original Board resolution

  4. Certified Copy of Partnership Deed

  • Proof of Continuation (Trade Licence, Sales Tax Certificate etc.)

  • Following CA Certification/Audit, latest ITR with income calculation, balance sheet, and profit & loss statement for the past two years

IDBI Bank Business Loan Eligibility

The following categories of individuals and businesses match the IDBI Bank business loan eligibility criteria:

  • You must be at least 21 years and not older than 65 years

  • Minimum business operational period of 3 years

  • Limited liability company or partnerships

  • Private limited company

  • Proprietorship firm 

  • Partnerships

Features and Benefits of IDBI Bank Business Loan

This instrument has a suite of features, designed to cater to your business-related needs. When you avail the IDBI Bank business loan, you have to repay it within 10 years. Additionally, the bank offers financing from ₹50,000 to up to ₹5 Crores to several firms. 

While you can do a part prepayment of the loan after paying one EMI, you can also foreclose it. Note that a processing fee of 1% is charged when you avail the business loan. The IDBI Bank business loan schemes are targeted towards different segments of the business sectors across India. Here are a few of its top features. 

  • Loans for Various Business Purposes: You can avail the IDBI Bank Business loan for various business purposes. These purposes can range from expanding your business, buying equipment or inventory, increasing working capital or consolidating business debt.

  • Business Loans without Security: IDBI Bank offers you a business loan without requiring any security or collateral. The maximum amount of the collateral-free loan is ₹35 Lakhs. All you need to do is fulfil the eligibility criteria of the bank and submit relevant documents.

  • Swift Processing of Loan Amount: Thanks to digital provisions, you enjoy an expedited borrowing experience, and this minimises delays, especially if you need capital urgently. 

  • Low Processing Charges: The processing charges for the IDBI Bank business loan are fairly low and range from 0.5% to 1% of the loan amount. These charges are deducted by the bank as soon as your loan amount is sanctioned and is a one-time charge.

  • Competitive Rates of Interest: The IDBI Bank business loans have affordable interest rates compared to many other private banks, making it easier to repay.

  • Door-to-Door Service: The IDBI Bank offers its loan processing services at your doorstep, thus, eliminating the need for you to physically visit a branch. 

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Types of Business Loan Schemes Offered by IDBI Bank

The following types of IDBI Bank business loan schemes across different business segments:

  • IDBI Bank MSME Finance

A facility for micro, small, and medium enterprises meet business requirements at affordable rates.

  • IDBI Loan for Medical Practitioners or Dhanvantri Loan

Loan facility to enable doctors to manage, operate, expand, or upgrade their hospital or clinic.

  • IDBI Property Power or Loan Against Property

A special loan offer that MSME applicants can avail against their properties.

  • IDBI Loan for Small Road and Water Transport Operators

Loan for road and water transport operators to meet their business requirements.

  • IDBI Sahaj Vyapar Loan

Loan offer to provide financing to retailers, wholesalers, traders, sole proprietors and partnership firms with trading business.

  • IDBI Business Loan for Service Sector

Loan scheme for entities who render or provide services.

  • IDBI General Credit Card Loan (GCC)

Special loan offered to individuals that do not participate in non-farm entrepreneurial activities.

  • IDBI Mudra Loan

Offered under the PMMY scheme, this facility offers financing to applicants that earn from non-farm activities.

  • IDBI Stand up India

Loan offer specially curated for women business owners and SC/CT applicants for the Green Field Projects.

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How to Apply for IDBI Bank Business Loan

There are two methods for submitting a loan application for a business, i.e., online and offline modes:

1. Online Mode

To avail an IDBI Bank business loan online, apply using the following steps:

  • Step 1: Visit the official website of IDBI Bank.

  • Step 2: Fill out the online application form.

  • Step 3: Submit copies of relevant documents.

  • Step 4: You will now get a call from the bank representatives to schedule an appointment for a meeting.

This way, for an IDBI business loan, apply online or visit the physical branch of the IDBI Bank to initiate the offline process.

Compare IDBI Bank with other Banks/NBFCS

Before availing a loan, do a proper assessment so that you can plan your repayment and manage your finances in a better way. Here is a table with different business loan interest rates that you can compare with the IDBI business loan interest rate.

Our Partners

Interest Rate Range

Max Loan Amount/ Tenure

Avail Loan

Ambit Finvest 

20% onwards

36 months

Apply Now

AYE Finance

28% onwards

36 months

Apply Now


12% onwards

36 months

Apply Now

IIFL Finance

18% onwards

60 months

Apply Now


20% onwards

48 months

Apply Now


16% onwards

36 months

Apply Now


15% onwards

9 months 

Apply Now

Lendingkart Finance Limited

15% onwards

36 months

Apply Now

Protium Finance Limited

1.25% p.m. onwards

72 months

Apply Now

**Disclaimer: The above interest rates and tenure are subject to change at the lender’s discretion.

Compare the IDBI Bank business loan with other banks by considering the following factors:

  • Interest rates: When it comes to business loans, you have to consider reducing balance and flat interest rates. With the reducing balance type, your interest and principal components reduce with each EMI that you pay. However, in the flat rate type, you pay the interest on the entire borrowed loan amount.

  • Prepayment Charges: Ensure that there are no or minimal prepayment charges when you compare business loans across banks.

  • Processing Fees: The loan processing charges should be low as a high loan processing cost only adds to your expenses.

Factors That Determine Your Business Loan Interest Rate

There are certain factors that influence your loan eligibility and approval as different banks assess different criteria. Here's a list of those factors:

  • Revenue of your company

  • Profits generated by your company

  • Cash flow of your business

  • Past track record of your business

  • Business credit rating, or in the case of a new firm, the owner(s)' credit rating 

  • Your business type: Sole Proprietorship, Partnership, Public Limited or Private Limited Company

IDBI Bank Customer Care

You can reach the customer service of the IDBI Business Loan section by calling the toll-free helpline number at 1800-209-4324 or 1800-22-1070 (24x7 service).


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs for IDBI Bank Business Loan

You can avail a maximum business loan amount of ₹5 Crores.


To check the progress of your loan application offline, you can call the customer service number or visit the branch and meet the concerned officer. To check the status online, use the IDBI Bank Internet Banking service and track the status of your loan application. 


Yes, IDBI offers start-up loans for new businesses.

Yes, IDBIBank has reduced its business loan interest rate, and the rate you are offered will depend on several factors. These include the business’ revenue and profit, annual turnover and the nature of the enterprise. Additionally, your CIBIL score and relationship with the lender may also be considered

The interest rate of IDBI Bank business loans varies across business verticals. The interest rates range from 8.05% to 13.45% depending on the size of the business.


The lowest EMI per lakh on a business loan from IDBI Bank is ₹2,237 per lakh.


The amount of business loan you can borrow from the IDBI Bank ranges from ₹50,000 to ₹5 Crores depending on the size of your business and financial standing.


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