Key facts: Bajaj Finance vs Federal Bank vs IDFC FIRST Bank business loan
- Starting rate: Bajaj Finance 14%, Federal Bank 10.85%, IDFC FIRST Bank 13%. This is the lowest rate each loan provider advertises for a business loan, not the rate everyone is offered.
- Gap between starting rates: 3.15 percentage points between the lowest and the highest.
- Top of the published range: Bajaj Finance up to 23.50%, Federal Bank up to 16.60%.
- Maximum tenure: Bajaj Finance 8 years, Federal Bank 10 years, IDFC FIRST Bank 4 years.
- Type of loan provider: Bajaj Finance is an NBFC; Federal Bank is a private bank; IDFC FIRST Bank is a private bank. Banks and NBFCs price floating rates differently.
- Official websites: bajajfinserv.in, federal.bank.in, idfcfirstbank.com.
- Pages checked: 4 official pages opened for this loan type.
- Loan types with a published rate: Bajaj Finance 5, Federal Bank 7, IDFC FIRST Bank 6 (out of 8 we track).
- Last checked: 12 October 2026, on each loan provider's own website.
Who each loan provider suits on a business loan
Built only from figures the loan providers publish. It says where each one is ahead on paper, not who will approve you.
Pick Bajaj Finance if you want
- The most complete published terms for this loan (5 of 5 details)
Pick Federal Bank if you want
- The lowest published starting rate (10.85%)
- The longest maximum tenure (10 years)
Where IDFC FIRST Bank stands
No clear edge on the published figures we could compare for a business loan. Check the table below and the Key Fact Statement.
Bajaj Finance vs Federal Bank vs IDFC FIRST Bank business loan: rate, fees and tenure
Starting business loan rates as published: Bajaj Finance from 14%, Federal Bank from 10.85% and IDFC FIRST Bank from 13%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered. Federal Bank lists the longer maximum tenure (120 months).
| Detail | Bajaj Finance | Federal Bank | IDFC FIRST Bank |
|---|---|---|---|
| Published rate | 14% to 23.50% p.a. (ECLGS 5.0: 8% to 13%) | Other Business Loans 10.85% to 16.60% (MSME, floating repo-linked); 11.90% to 17.75% (non-MSME, MCLR-linked) | Starting at 13% p.a. |
| Rate basis | per annum; reducing/flat not stated | repo-linked (MSME) / MCLR (non-MSME) / fixed | Fixed for term loan; dropline overdraft interest on utilised amount |
| Loan amount | Rs. 2 lakh (Rs. 50,000 under ECLGS 5.0) to Rs. 80 lakh | Up to Rs 20 crore (rate table scope) | ₹7 lakh to ₹1 crore |
| Maximum tenure | 96 months | 120 months | 48 months (min 12 months) |
| Processing fee | Up to 4.72% of loan amount, inclusive of taxes | Not published | Up to 3.5% of loan amount (term loan) plus GST |
| Prepayment / foreclosure | Full prepayment up to 4.72% of outstanding; part prepayment up to 4.72% of principal prepaid on Term Loans | Not published | Not published |
| Eligibility (as published) | Business vintage at least 3 years; CIBIL 650 or higher; self-employed; age 21 to 80 at end of tenure | Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading | MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage |
| Other terms published |
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| Official source | bajajfinserv.in/business-loan | federal.bank.in/business-loans federal.bank.in/loan-rate | idfcfirst.bank.in/business-banking/loans/business-loan |
Read the full guide: Business loan
What each loan provider publishes about its business loan
Bajaj Finance
NBFC · Bajaj Finance Limited
- How the rate is set: per annum; reducing/flat not stated
- Eligibility as published: Business vintage at least 3 years; CIBIL 650 or higher; self-employed; age 21 to 80 at end of tenure
- Term, Flexi Dropline and Flexi Hybrid variants
- No collateral or guarantor
- Minimal documentation
- Quick disbursal after approval
Federal Bank
Private bank · The Federal Bank Limited
- How the rate is set: repo-linked (MSME) / MCLR (non-MSME) / fixed
- Eligibility as published: Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading
- Quick loan processing & approval
- Simple assessment norms
- Longer repayment period up to 120 months
- Flexible repayment options
IDFC FIRST Bank
Private bank · IDFC FIRST Bank Limited
- How the rate is set: Fixed for term loan; dropline overdraft interest on utilised amount
- Eligibility as published: MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage
- Collateral-free funding up to ₹1 crore
- Tenure up to 48 months
- Dropline overdraft option
- Quick eligibility up to ₹75 lakh based on banking
Before you apply for a business loan
- Rate basis: Banks usually link floating rates to the repo rate. NBFCs often quote a wider range and start higher.
- Term loan or overdraft: A term loan is repaid in fixed instalments. An overdraft lets you draw and repay as you need and charges interest on the amount used.
- Business vintage: Most loan providers want the business to have run for a minimum period and to show steady turnover. Ask for the cut-off.
- Prepayment: Prepayment charges on business loans differ by loan provider and by loan type. Get the rule in writing.
RBI requires every loan provider to hand you a Key Fact Statement before you sign. It shows the rate, every fee, the APR and the total you will repay.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources and last check
Every figure above is read from the loan provider's own website and was checked on 12 October 2026. A blank means the page does not show that figure, and we never estimate one.
- Bajaj Finance: bajajfinserv.in/business-loan
- Federal Bank: federal.bank.in/business-loans federal.bank.in/loan-rate
- IDFC FIRST Bank: idfcfirst.bank.in/business-banking/loans/business-loan
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More business loan comparisons
Bajaj Finance vs Federal Bank vs IDFC FIRST Bank: every loan type on one page · All business loan comparisons · Business loan guide · Business loan EMI calculator
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Frequently asked questions
Which is better for a business loan: Bajaj Finance, Federal Bank or IDFC FIRST Bank?
Federal Bank has the lowest published starting business loan rate at 10.85%, against 14% at Bajaj Finance and 13% at IDFC FIRST Bank. Rate is only one part of the cost, so also compare the processing fee, the prepayment terms and the total repayable amount in the Key Fact Statement.
Which has the lower business loan interest rate: Bajaj Finance, Federal Bank or IDFC FIRST Bank?
Federal Bank has the lowest published starting business loan rate at 10.85%, against 14% at Bajaj Finance and 13% at IDFC FIRST Bank. The published ranges run to Bajaj Finance up to 23.50% and Federal Bank up to 16.60%, so the rate you are offered can sit well above the starting rate.
What is the business loan processing fee at Bajaj Finance, Federal Bank and IDFC FIRST Bank?
Bajaj Finance: Up to 4.72% of loan amount, inclusive of taxes. Federal Bank: not published. IDFC FIRST Bank: Up to 3.5% of loan amount (term loan) plus GST. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum business loan tenure at Bajaj Finance, Federal Bank and IDFC FIRST Bank?
Bajaj Finance: 96 months. Federal Bank: 120 months. IDFC FIRST Bank: 48 months (min 12 months). A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose a business loan early at Bajaj Finance, Federal Bank and IDFC FIRST Bank?
Bajaj Finance: Full prepayment up to 4.72% of outstanding; part prepayment up to 4.72% of principal prepaid on Term Loans. Federal Bank: not published. IDFC FIRST Bank: not published. Ask whether the rate on your loan is fixed or floating, because the charges depend on it.
How much business loan can I get from Bajaj Finance, Federal Bank and IDFC FIRST Bank?
Bajaj Finance: Rs. 2 lakh (Rs. 50,000 under ECLGS 5.0) to Rs. 80 lakh. Federal Bank: Up to Rs 20 crore (rate table scope). IDFC FIRST Bank: ₹7 lakh to ₹1 crore. The amount you are offered depends on your income, credit profile and the security you give.
Who is eligible for a business loan at Bajaj Finance, Federal Bank and IDFC FIRST Bank?
Bajaj Finance: Business vintage at least 3 years; CIBIL 650 or higher; self-employed; age 21 to 80 at end of tenure. Federal Bank: Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading. IDFC FIRST Bank: MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage. Each loan provider can ask for more documents once you apply.
Are Bajaj Finance, Federal Bank and IDFC FIRST Bank regulated by the RBI?
Yes. Bajaj Finance is an NBFC, Federal Bank is a private bank, IDFC FIRST Bank is a private bank, and all lend under RBI rules, including the requirement to give you a Key Fact Statement before you sign.
Where do these business loan figures come from?
From the official pages of Bajaj Finance, Federal Bank and IDFC FIRST Bank, opened and checked on 12 October 2026. The sources are listed at the bottom of this page. We show a blank where a loan provider does not publish a figure, and we do not estimate one.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.