Secured Business Loan
A Secured Business Loan is a financial solution that allows individuals and businesses to leverage their owned property to secure funds. Whether you need capital for business expansion, debt consolidation, or working capital needs, SBL offers flexibility and attractive terms. IIFL Finance provides a seamless borrowing experience with competitive interest rates, quick approvals, and minimal documentation requirements.
Here’s everything you need to know about secured business loan, including eligibility, interest rates, documentation, and more.
Secured business loan EMI calculator
See your monthly EMI before you apply.
- Principal
- ₹50,00,000
- Total interest
- ₹36,08,257
*The maximum loan amount of ₹5 Cr and maximum tenure of 20 years (240 months) are subject to eligibility, property valuation and credit assessment.
The EMI shown is indicative and is not a loan offer. Your actual interest rate, loan amount and tenure are confirmed at sanction. Processing fees, GST and other charges are extra, as per our schedule of charges.
Disclaimer: The EMI amount displayed by this calculator is indicative and provided for illustrative purposes only. The actual EMI, interest rate, loan amount, tenure and other applicable terms may vary based on the applicant’s profile, credit assessment, applicable product policies and terms and conditions of IIFL. The calculation does not constitute a loan offer, sanction, approval or commitment by IIFL. Final loan eligibility and terms shall be subject to IIFL’s applicable credit, legal, technical and other assessment criteria. Customers are advised to refer to the loan agreement and applicable terms and conditions for final details.
What is a Secured Business Loan?
A secured business loan is a secured loan where borrowers pledge residential or commercial property as collateral. The loan amount is determined based on the property’s market value and the borrower’s repayment capacity. This makes secured business loan an excellent option for meeting substantial financial needs without liquidating assets.
IIFL Finance caters to a variety of financial goals, including:
Business Expansion
Use the funds to scale operations, purchase equipment, or hire staff.
Working Capital Needs
Manage day-to-day business expenses efficiently.
Debt Consolidation
Simplify multiple debts into a single manageable loan.
Business Investment
Capitalize on opportunities with readily available funds.
Loan Details and Key Features
| Loan Amount | Ranges from ₹20 Lakh to ₹5 Crore*, catering to diverse financial needs. |
|---|---|
| Tenure | Flexible repayment options from 3 to 20 years*, making it easy to manage cash flow. |
| Interest Rate | Starting from 11.00%*, offering one of the lowest interest rates in the market. |
| Processing Fee | Up to 5% of the loan amount + GST. |
With IIFL Finance, you can also use their
secured business loan EMI calculator
to estimate monthly repayments, helping you plan better.
Documents Required for Secured Business Loan
To simplify the application process, IIFL Finance has outlined a clear set of requirements:
-
Application Form:
Complete and sign the form.
-
KYC Documents:
ID and address proof for borrowers and co-borrowers.
-
PAN Card:
For both borrower and co-borrowers.
-
Signature Verification:
From the borrower and co-borrowers.
-
Property Documents:
Ownership proof and valuation reports.
-
Bank Statements:
Last 6 months’ business account statements.
Additional documents may be required for secured business loan eligibility assessment, especially if applying for a
secured business loan
or without income proof.
Secured Business Loan Interest Rates and Charges
The
secured business loan interest rates
starts at 11.00%*, making it an attractive option compared to personal or unsecured loans. Other charges include:
| Fees / Charges | Fees / Charges (% / Rs) |
|---|---|
| Processing Fees | up to 5% of the loan amount |
| IMD Charges1 (Initial Money Deposit) | Upto Rs 3,000 (non-refundable) |
| Nach / e-mandate bounce Charges | Rs 2,500 |
| Penal / Default Charges2# | 2% p.m. (24% p.a) |
| Cancellation charges | Rs 5,000 |
| Legal & Valuation Charges | Rs 5,000 + GST |
| Documentation Charges | Rs 3,000 + GST |
| Stamp Duty*** | As per Actual |
| Foreclosure Charges* 4 |
|
| Part Payment Charges | Nil |
| Switch over facility (from Floating to Fixed and Fixed to Floating) |
Switch over not allowed (w.e.f October 01, 2025)5 |
| NeSL Reporting** | As Applicable |
| Cooling off period**** | 7 days |
In case of disbursement, this charge will be adjusted towards Processing Fees
Levied on principal outstanding. Penal charges will not be levied on the outstanding penal due amount.
Provisions apply irrespective of the source of pre-payment/foreclosure and without any minimum lock-in period.
Where pre-payment is effected at the instance of the Company, pre-payment charges shall not be levied.
In accordance with para 2 (ii) of RBI Circular on 'Reset of Floating Interest Rate on EMI based Personal Loans' dated August 18, 2023 amended on September 29, 2025.
# levied on outstanding due amount. Outstanding due amount for this purpose includes the principal outstanding and Interest accrued. Penal charges will not be levied on the outstanding penal due amount
The combined levy of overdue notice charges and Auction charges will be capped at Rs 1500 per customer loan account
*Subject to cooling Period. Charged on outstanding principal
** These charges shall be levied annually in accordance with the fee schedule provided by NESL and are subject to change by NESL.
*** Stamp Duty as per applicable laws of the state
****The borrower shall have the explicit option to exit the digital loan during the initial "cooling-off period" by repaying the principal along with the proportionate APR, without any penalty. In case the customer exits the loan during the cooling-off period, the Company may retain a reasonable one-time processing fee.
Note:
GST and other government taxes, levies, etc. applicable as per the prevailing rates will be charged in addition to these charges. (if applicable)
Key Benefits of Secured Business Loan with IIFL Finance
-
Quick Approvals:
Fast processing ensures that funds are available when needed.
-
Higher Loan Limits:
Borrow up to ₹5 Crore* based on property value and eligibility.
-
Competitive Interest Rates:
One of the lowest secured business loan interest rates, making borrowing affordable.
-
Flexible Tenures:
Choose repayment terms that align with your financial capabilities.
-
Simple Documentation:
Hassle-free application process with minimal paperwork.
Eligibility for Secured Business Loan
IIFL Finance offers loans to business owners in the manufacturing, trading, and service sectors with at least 12 months of operational history. Your eligibility depends on factors like credit score, income, property type, and repayment capacity.
For those concerned about proof of income, IIFL also provides options for a secured business loan without income proof, subject to additional assessments.
To check how much you can borrow, use a secured business loan emi calculator, which evaluates eligibility based on property value, income, and tenure.
Why Choose IIFL Finance for Secured Business Loan?
Tailored Solutions
Whether for business or personal use, IIFL offers customized SBL options.
Tech-Enabled Services
Use the secured business loan EMI calculator to determine repayment plans instantly.
Reliability
IIFL is a trusted name with a proven track record in financial services.
Ease of Access
Apply online or visit a branch for personalized assistance.
Key Considerations
Before applying for a secured business loan, keep the following in mind:
-
Ensure your property valuation aligns with your funding needs.
-
Use a secured
business loan eligibility calculator
to determine qualification criteria.
-
Factor in charges like prepayment fees and penalties to avoid surprises.
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