Key facts: Hero FinCorp vs IDFC FIRST Bank business loan
- Starting rate: Hero FinCorp 14%, 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: 1 percentage points between the lowest and the highest.
- Maximum tenure: Hero FinCorp 4 years, IDFC FIRST Bank 4 years.
- Type of loan provider: Hero FinCorp is an NBFC; IDFC FIRST Bank is a private bank. Banks and NBFCs price floating rates differently.
- Official websites: herofincorp.com, idfcfirstbank.com.
- Pages checked: 2 official pages opened for this loan type.
- Loan types with a published rate: Hero FinCorp 6, 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.
Where Hero FinCorp stands
No clear edge on the published figures we could compare for a business loan. Check the table below and the Key Fact Statement.
Pick IDFC FIRST Bank if you want
- The lower published starting rate (13%)
Hero FinCorp vs IDFC FIRST Bank business loan: rate, fees and tenure
Starting business loan rates as published: Hero FinCorp from 14% and IDFC FIRST Bank from 13%. IDFC FIRST Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered.
| Detail | Hero FinCorp | IDFC FIRST Bank |
|---|---|---|
| Published rate | Starting from 14% p.a.; up to maximum 30% | Starting at 13% p.a. |
| Rate basis | Fixed or floating options | Fixed for term loan; dropline overdraft interest on utilised amount |
| Loan amount | Rs. 5 Lakh to Rs. 50 Lakh | ₹7 lakh to ₹1 crore |
| Maximum tenure | 4 years (minimum 1 year) | 48 months (min 12 months) |
| Processing fee | Per Sanction Letter cum KFS; FAQ says typically up to 2.5% of loan amount | Up to 3.5% of loan amount (term loan) plus GST |
| Prepayment / foreclosure | Not allowed in 12-month lock-in; after that 5% + taxes on outstanding principal | Not published |
| Eligibility (as published) | Not published | MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage |
| Other terms published |
|
|
| Official source | herofincorp.com/business-loan-interest-rates | idfcfirst.bank.in/business-banking/loans/business-loan |
Read the full guide: Business loan
What each loan provider publishes about its business loan
Hero FinCorp
NBFC · Hero FinCorp Limited
- How the rate is set: Fixed or floating options
- Loans up to Rs. 50 Lakh
- Collateral-free loan
- Instant approval
- Fixed or floating interest rate 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
- Prepayment: Prepayment charges on business loans differ by loan provider and by loan type. Get the rule in writing.
- Udyam registration: Many loan providers ask for Udyam registration on MSME loans. Keep it ready with your GST returns and bank statements.
- Collateral: Some business loans need no collateral and are covered by the CGTMSE guarantee scheme. Ask whether the one you are offered is.
- Rate basis: Banks usually link floating rates to the repo rate. NBFCs often quote a wider range and start higher.
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.
- Hero FinCorp: herofincorp.com/business-loan-interest-rates
- IDFC FIRST Bank: idfcfirst.bank.in/business-banking/loans/business-loan
Read our editorial policy, how we make money and tell us about an error.
More business loan comparisons
Hero FinCorp 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: Hero FinCorp or IDFC FIRST Bank?
IDFC FIRST Bank has the lower published starting business loan rate at 13%, against 14% at Hero FinCorp. 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: Hero FinCorp or IDFC FIRST Bank?
IDFC FIRST Bank has the lower published starting business loan rate at 13%, against 14% at Hero FinCorp. The rate you are offered depends on your credit profile, income and loan amount.
What is the business loan processing fee at Hero FinCorp and IDFC FIRST Bank?
Hero FinCorp: Per Sanction Letter cum KFS; FAQ says typically up to 2.5% of loan amount. 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 Hero FinCorp and IDFC FIRST Bank?
Hero FinCorp: 4 years (minimum 1 year). 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 Hero FinCorp and IDFC FIRST Bank?
Hero FinCorp: Not allowed in 12-month lock-in; after that 5% + taxes on outstanding principal. 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 Hero FinCorp and IDFC FIRST Bank?
Hero FinCorp: Rs. 5 Lakh to Rs. 50 Lakh. 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 Hero FinCorp and IDFC FIRST Bank?
Hero FinCorp: not published. 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 Hero FinCorp and IDFC FIRST Bank regulated by the RBI?
Yes. Hero FinCorp is an NBFC, 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 Hero FinCorp 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.