Key facts: IDFC FIRST Bank vs Tata Capital business loan
- Starting rate: IDFC FIRST Bank 13%, Tata Capital 12%. 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.
- Top of the published range: Tata Capital up to 30%.
- Maximum tenure: IDFC FIRST Bank 4 years, Tata Capital 5 years.
- Type of loan provider: IDFC FIRST Bank is a private bank; Tata Capital is an NBFC. Banks and NBFCs price floating rates differently.
- Official websites: idfcfirstbank.com, tatacapital.com.
- Pages checked: 2 official pages opened for this loan type.
- Loan types with a published rate: IDFC FIRST Bank 6, Tata Capital 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 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.
Pick Tata Capital if you want
- The lower published starting rate (12%)
- The longer maximum tenure (5 years)
IDFC FIRST Bank vs Tata Capital business loan: rate, fees and tenure
Starting business loan rates as published: IDFC FIRST Bank from 13% and Tata Capital from 12%. Tata Capital is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered. Tata Capital lists the longer maximum tenure (60 months).
| Detail | IDFC FIRST Bank | Tata Capital |
|---|---|---|
| Published rate | Starting at 13% p.a. | Starts at 12% p.a.; self-employed 12% to 30% p.a. |
| Rate basis | Fixed for term loan; dropline overdraft interest on utilised amount | Primarily floating, linked to RLLR or PLR; fixed in some cases |
| Loan amount | ₹7 lakh to ₹1 crore | Not published |
| Maximum tenure | 48 months (min 12 months) | 60 months |
| Processing fee | Up to 3.5% of loan amount (term loan) plus GST | Up to 3% of loan amount + taxes |
| Prepayment / foreclosure | Not published | Part-prepayment 4.5% of amount prepaid; foreclosure 4.5% of principal outstanding |
| Eligibility (as published) | MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage | CIBIL about 675+ generally needed |
| Other terms published |
|
|
| Official source | idfcfirst.bank.in/business-banking/loans/business-loan | tatacapital.com/business-loan/rates-and-charges.html |
Read the full guide: Business loan
What each loan provider publishes about its business loan
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
Tata Capital
NBFC · Tata Capital Limited
- How the rate is set: Primarily floating, linked to RLLR or PLR; fixed in some cases
- Eligibility as published: CIBIL about 675+ generally needed
- No collateral required
- Fixed and structured EMI plans
- Online application with faster approval
- Balance transfer facility available
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.
- IDFC FIRST Bank: idfcfirst.bank.in/business-banking/loans/business-loan
- Tata Capital: tatacapital.com/business-loan/rates-and-charges.html
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More business loan comparisons
IDFC FIRST Bank vs Tata Capital: 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: IDFC FIRST Bank or Tata Capital?
Tata Capital has the lower published starting business loan rate at 12%, against 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: IDFC FIRST Bank or Tata Capital?
Tata Capital has the lower published starting business loan rate at 12%, against 13% at IDFC FIRST Bank. The published ranges run to Tata Capital up to 30%, so the rate you are offered can sit well above the starting rate.
What is the business loan processing fee at IDFC FIRST Bank and Tata Capital?
IDFC FIRST Bank: Up to 3.5% of loan amount (term loan) plus GST. Tata Capital: Up to 3% of loan amount + taxes. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum business loan tenure at IDFC FIRST Bank and Tata Capital?
IDFC FIRST Bank: 48 months (min 12 months). Tata Capital: 60 months. A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose a business loan early at IDFC FIRST Bank and Tata Capital?
IDFC FIRST Bank: not published. Tata Capital: Part-prepayment 4.5% of amount prepaid; foreclosure 4.5% of principal outstanding. 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 IDFC FIRST Bank and Tata Capital?
IDFC FIRST Bank: ₹7 lakh to ₹1 crore. Tata Capital: not published. The amount you are offered depends on your income, credit profile and the security you give.
Who is eligible for a business loan at IDFC FIRST Bank and Tata Capital?
IDFC FIRST Bank: MSMEs, proprietors, partnerships, LLPs, companies; age 28-68 at maturity; turnover ₹1 crore or more; 3 years vintage. Tata Capital: CIBIL about 675+ generally needed. Each loan provider can ask for more documents once you apply.
Are IDFC FIRST Bank and Tata Capital regulated by the RBI?
Yes. IDFC FIRST Bank is a private bank, Tata Capital is an NBFC, 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 IDFC FIRST Bank and Tata Capital, 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.