# IDFC First business loans

> IDFC First is on Recur Club's lender panel, writing cgss over draft cash credit, cgtmsme overdraft cash credit, cgtmsme working capital demand loan and 8 other products. Observed tickets run ₹3 cr to ₹30 cr, priced between 10% and 11%. Median turnaround from application to disbursal is about 168 days.

Source: https://www.recurclub.com/lenders/idfc-first
Last updated: 2026-09-29

## Products and indicative terms

Observed on live transactions. Not an offer or a quote.

| Product | Ticket | Rate | Tenure |
|---|---|---|---|
| Cgtmsme Overdraft Cash Credit | ₹5.2 cr | 10.5% | 12 mo |
| Overdraft / Cash Credit | ₹3–30 cr | 10–11% | 12 mo |

Also offered, with no terms observed yet: Cgss Over Draft Cash Credit, Cgtmsme Working Capital Demand Loan, Dropline Overdraft, Loan Against Property, Purchase Invoice Discounting, Sales Invoice Discounting, Secured Term Loan, Unsecured Business Loan, Working Capital Demand Loan.

## Eligibility

### Will not fund

- The standard connector/referral agreement is a version-controlled document approved by Legal for connectors and must remain in its original form — no modifications will be accommodated.
- IDFC Legal will not permit any modifications to the standard connector referral agreement — it must remain in its original, board-approved form
- Will not consider deals involving Politically Exposed Persons (PEP) — flagged as a critical criterion.
- Won't fund Banking, Explosives, Arms & Ammunition, Financial Services, Gambling & Betting, Gems & Jewellery, Insurance, Lottery, Real Estate (non-asset light), Tobacco, or Tourism & Hospitality sectors.
- Declined the proposed working capital facility for Akshamaala citing declining turnover/EBITDA, a cash shortfall versus reported figures, elevated overdue receivables, ongoing EBITDA burn, and negative standalone adjusted tangible net worth.
- Won't fund scrap, real estate, fertilizers, gold/bullion, alcohol, or gyms.
- Won't take schools, colleges, or marriage/mandap venues as security.
- Not doing project financing or greenfield financing
- Cannot fund for property purchase - only working capital centric deals
- Negative sectors: gold manufacturing (retail shops okay), import/export with GCC countries
- Cannot fund manpower solutions, petrol pump, gas, gems and jewellery sectors
- Won't accept third-party collateral.
- Won't entertain any calls on CIBIL — the credit bureau record must be clean.
- Won't fund agricultural land, though can accept CLU (change of land use) collateral.
- Only fund companies funded by their partner VCs - BLUME, 3one4 Capital, Exfinity Venture Partners, Meridian Investment
- Won't fund deals where the end-use is acquisition financing
- Cannot be evaluated under any startup program regardless of CGSS
- Cannot be evaluated under SME programs — loss making and small scale after 20 years
- Not possible to do without personal guarantee
- Declining to proceed due to absence of Personal Guarantee (personal guarantee); IDFC has no deviation policy for personal guarantee
- Case was passed earlier due to vintage and small turnover
- No active DPIIT certificate makes the company invalid for CGSS (Credit Guarantee Scheme for Startups) support; the case should not have been logged without it.
- Dropped - Scale is too small and not PE backed
- The standard connector/referral agreement is a version-controlled document approved by Legal for connectors and must remain in its original form — no modifications will be accommodated. (×1 · latest )

### Prefers

- Wants to deploy more under the CGSS scheme
- Manufacturer is a good sector for IDFC BBG
- Not too bullish on CGTMSE
- Preferred cases: manufacturing doable; traders doable if net worth and EBITDA are good; startups get major comfort from approved investors
- Can do LRD, LAP with working capital products bundled together
- …more in playbook
- Wants to deploy more under the CGSS scheme
- Manufacturer is a good sector for IDFC BBG
- Not too bullish on CGTMSE
- Preferred cases: manufacturing doable; traders doable if net worth and EBITDA are good; startups get major comfort from approved investors
- Can do LRD, LAP with working capital products bundled together
- Prefers doing DP backed cases
- Manufacturing remains the primary focus sector for IDFC BBG lending.
- Government-supported MSME lending continues to be an important focus area.
- Startup lending remains active but preference is for startups backed by approved investors.
- SME lending is largely focused on property-backed (secured) facilities.
- Manufacturers may receive enhanced leverage if they have strong financials and existing banking relationships.
- Promoter guarantees and promoter commitment are important underwriting factors.
- Not well positioned to initiate ETB (existing-to-bank) funding right now, as it spans asset and multiple banking verticals making the initial approach complex; prefers to revisit the ETB opportunity after about six months once the partnership foundation is stronger.
- Personal guarantee (personal guarantee) is optional under this program.
- For mid/large corporates, prefers profitable companies with existing private banking relationships — most comfortable with Kotak, then Axis, ICICI, Federal, HDFC.
- Security for mid/large corporates is flexible, usually property-backed (pari-passu acceptable), takes all types of properties.
- Prefers companies headquartered in Delhi, Haryana, Uttar Pradesh, or Uttarakhand.
- Prefers Private Limited or Public company types.

### Screening gates and observed behaviour

- Borrower: CIBIL ≥650 (bank guarantee, cgss over draft cash credit, cgss working capital demand loan, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, secured term loan, vehicle financing, vendor financing, working capital demand loan) · CIBIL ≥700 (unsecured business loan) · age ≥2y (cgss over draft cash credit, cgss working capital demand loan, cgtmsme overdraft cash credit, cgtmsme working capital demand loan) · age ≥3y (unsecured business loan) · suit filed: No (unsecured business loan only) · wilful defaulter: No (unsecured business loan only) · max usl enquiries l3 m: 10 (unsecured business loan only) · max ongoing ubl count: 8 (unsecured business loan only) · avg bank balance: 0.015 (unsecured business loan only) · Haryana, Uttar Pradesh, Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, Puducherry (varies by product) · avoid: Explosives, Arms and Ammunitions, Gambling and Betting, Lottery Business (varies by product) · Private Limited (varies by product) · sector-agnostic (44 sectors — full list in data JSON) (varies by product)
- Financials: TOL/adjusted tangible net worth ≤4 (varies by product) · debt/EBITDA ≤4 (bank guarantee, cgtmsme overdraft cash credit, cgtmsme working capital demand loan, letter of credit, overdraft / cash credit, secured term loan, working capital demand loan) · debt/EBITDA ≤3 (domestic factoring, dropline overdraft, export financing, import factoring, loan against property, loan against securities, machinery loan, purchase invoice discounting, sales invoice discounting, vehicle financing, vendor financing) · debt/networth ≤3 (varies by product) · DSCR ≥1 (bank guarantee, cgtmsme overdraft cash credit, cgtmsme working capital demand loan, domestic factoring, dropline overdraft, export financing, import factoring, letter of credit, loan against property, loan against securities, machinery loan, overdraft / cash credit, purchase invoice discounting, sales invoice discounting, secured term loan, vehicle financing, vendor financing, working capital demand loan) · DSCR ≥0.8 (unsecured business loan) · maximum runway: 60 (overdraft / cash credit, sales invoice discounting, secured term loan only) · minimum assetsundermanagement: 50 (secured term loan only) · gross non performing assets: 3 (secured term loan only) · runway ≥12mo (varies by product) · maximum tradereceivables: 120 (cgtmsme overdraft cash credit, cgtmsme working capital demand loan only) · rev ≥₹3cr (cgtmsme overdraft cash credit, cgtmsme working capital demand loan) · rev ≥₹1cr (unsecured business loan) · rev ≥₹5cr (cgss over draft cash credit, cgss working capital demand loan) · maximum tradepayables: 150 (cgtmsme overdraft cash credit, cgtmsme working capital demand loan only) · maximum workingcapitalgap: 180 (cgtmsme overdraft cash credit, cgtmsme working capital demand loan only) · maximum annualrevenue: 100 (varies by product)
- Deal: rate 8–17% (range across products — see matrix) · ticket ₹0–500cr (range across products — see matrix) · tenure 0–300mo (range across products — see matrix) · no PEP
- Security (observed): 1st/pari-passu charge on current assets (100%) · Personal Guarantee Of Promoters / Directors / Property Owner (75%) · FD margin 20–30% (50%)
- median ticket ₹10cr
- median rate 11%
- median turnaround 168d
- Security asked in : Personal Guarantee Of Promoters/Directors (×2), Escrow Of Cashflows (×2), 1st/pari-passu charge on current assets (×2), Fixed Deposit <5% (×2)
- Security asked in : 1st/pari-passu charge on current assets (×9), FD margin 20–30% (×6), Personal Guarantee Of Promoters/Directors (×5), Personal Guarantee Of Promoters / Directors / Property Owner (×3)
- Security asked in 2026: 1st/pari-passu charge on current assets (×28), Personal Guarantee Of Promoters / Directors / Property Owner (×21), FD margin 20–30% (×14), Movable Fixed Assets/Plant & Machinery - Pari Passu First Charge (×6)
- share → in-principle approval (initial interest): ≈50d
- in-principle approval → sanction (underwriting): ≈2d
- sanction → disburse (closing): ≈49d

## Sanctioned terms (from 50 real sanction letters)

### Sanctioned amount: median ₹80L (₹0L–₹26 cr) · NEW ×12 · RENEWAL ×4 · ENHANCEMENT ×1

- median ₹80L (₹0L–₹26 cr) · NEW ×12 · RENEWAL ×4 · ENHANCEMENT ×1

### Typical security: Fixed Deposit ×9, Current Assets and Moveable Fixed Assets ×4, Commercial Property - Self Occupied ×4, Current Assets ×4, Immovable Property (Mortgage) ×4, Fixed Deposit Receipt (FDR) ×3

- Fixed Deposit ×9, Current Assets and Moveable Fixed Assets ×4, Commercial Property - Self Occupied ×4, Current Assets ×4, Immovable Property (Mortgage) ×4, Fixed Deposit Receipt (FDR) ×3

### Typical covenants: - Other standing covenants — 50% of letters (e.g. "Unsecured Loans & Advances from Group entities like Win Medicare & MMP for ≈Rs 141 Cr shall remain subordinated to our debt (revised from ≈Rs 131 Cr in the earl…")

- Other standing covenants — 50% of letters (e.g. "Unsecured Loans & Advances from Group entities like Win Medicare & MMP for ≈Rs 141 Cr shall remain subordinated to our debt (revised from ≈Rs 131 Cr in the earl…")

### Term sheet by ticket size: (facilities, largest first)

- (facilities, largest first)

## Common questions

### What does IDFC First lend?

IDFC First writes cgss over draft cash credit, cgtmsme overdraft cash credit, cgtmsme working capital demand loan, dropline overdraft, loan against property, overdraft / cash credit and 5 further products. Across those, observed facilities run ₹3 cr to ₹30 cr.

### What ticket size does IDFC First offer?

Facilities observed on live transactions run from ₹3 cr to ₹30 cr. The band differs by product, so the figure that applies to you depends on which facility you are asking for.

### What rate does IDFC First charge?

Rates observed on live transactions fall between 10% and 11% a year. Tenures run 12 to 12 months. These are observed figures, not a quote, and the rate you are offered depends on your file.

### How long does IDFC First take to disburse?

About 168 days from application to disbursal at the median, where the file is complete. Missing financials, unresolved security or a pending no-objection from an existing lender are what usually stretch it.

### What are IDFC First's eligibility criteria?

The first screen is the bureau: a borrower CIBIL of at least 650. Revenue, leverage and debt-service thresholds apply on top and vary by product. The full credit box for each product is set out on this page.

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Lender intelligence dossier - screening gates, per-product terms and sanction observations, derived from lender policy documents and observed transactions. Figures are observed from a sample and are not an offer, a commitment, or a statement of IDFC First's current policy.