Whether you’re a first-time entrepreneur or an established business owner, choosing the right business loan can significantly impact your financial flexibility. From documentation and disbursal timelines to loan types and repayment options, business owners today look beyond just interest rates—they want a loan product that adapts to their business cycle.
Two popular lenders in India—InCred and IDFC FIRST Bank—offer a range of funding solutions to businesses. But which one offers more flexibility for entrepreneurs?
This blog compares both lenders across important parameters such as loan amount, tenure, processing, eligibility, and borrower experience to help you make an informed decision.
Why Flexibility Matters in a Business Loan
Unlike salaried individuals, business owners face:
- Irregular cash flows
- Seasonal demands
- Urgent working capital needs
- Limited documentation in early stages
That’s why flexibility in loan structure, collateral options, and repayment features matters as much as affordability. Let’s now see how InCred and IDFC FIRST fare.
Business Loan Products: InCred vs IDFC FIRST
Both lenders offer unsecured business loans, but IDFC FIRST also extends a wide suite of secured lending solutions—ideal for growing businesses with assets to leverage.
Let’s look at the types of business loans available through each.
✅ InCred Business Loan Overview
- Loan Type: Unsecured business loans
- Loan Amount: ₹1 lakh to ₹10 crore
- Tenure: 12 to 36 months
- Interest Rate: Starts from 14.5% p.a.
- Collateral: Not required
- Processing Time: 24 to 48 hours (typical)
✅ IDFC FIRST Bank Business Loan Options
IDFC FIRST caters to a broader range of business types, including professionals and exporters.
| Loan Type | Ideal For | Loan Amount | Tenure | Interest Rate (Starting) |
| Unsecured Business Loan | MSMEs, traders | Up to ₹1 crore | Up to 4 years | 14% p.a. |
| Professional Loan | Doctors, CAs | ₹5 lakh – ₹1 crore | Up to 7 years | 11% p.a. |
| Working Capital Loan | Manufacturers, distributors | Up to ₹10 crore | Flexible | Varies |
| Loan Against Property (LAP) | Expansion, big-ticket needs | Up to ₹15 crore | Up to 25 years | 9.25% p.a. |
| Construction Equipment Loan | Contractors, logistics firms | ₹5 lakh – ₹1 crore | 1–7 years | 9% p.a. |
| Dropline Overdraft | Exporters, dynamic cash flow businesses | Limit-based | Reducing tenure | Varies |
RupeeQ Tip:
If you run a high-capex business or plan large expansion, IDFC FIRST’s Loan Against Property is a better fit for long-term funding.
Processing Speed and Disbursal Flexibility
Quick access to funds can make or break short-term opportunities. Here’s how both lenders stack up in terms of speed.
InCred Processing Advantage
- Quick application process (entirely online)
- Minimal documentation (basic KYC + bank statements)
- Funds disbursed within 48 hours if eligible
IDFC FIRST Multi-Product Approach
- Digital + physical hybrid process
- Eligibility checks available online
- Unsecured loans: 3–5 working days
- LAP and Working Capital loans: May take 2–3 weeks
Verdict: If you need urgent funding with minimal documentation, InCred wins on turnaround speed.
Interest Rates and Repayment Flexibility
The cost and structure of repayments can heavily influence a business’s monthly outflows. Let’s compare both.
InCred:
- Fixed EMI throughout the loan tenure
- Short tenure (max 3 years)
- Interest rate starts from 14.5% p.a.
- No prepayment charges after 12 months
IDFC FIRST:
- Flexible repayment options (dropline, structured EMI, overdraft)
- Longer tenure—up to 25 years for LAP
- Interest starts as low as:
- 9% p.a. for Construction Equipment Loans
- 25% p.a. for LAP
- 11% p.a. for professionals
Example:
For a ₹30 lakh loan:
- At 14.5% p.a. (InCred) over 3 years → EMI ≈ ₹1,03,244/month
- At 9.25% p.a. (IDFC FIRST LAP) over 10 years → EMI ≈ ₹38,324/month
RupeeQ Tip:
Lower interest + longer tenure = lower EMI burden. But short-tenure loans from InCred can help businesses close debt faster if they have high monthly cash flow.
Collateral and Documentation Requirements
This is a key factor for small business owners or startups with limited paperwork or assets.
InCred:
- Completely collateral-free
- Requires basic business registration proof, KYC, and 6-month bank statement
- Ideal for: Startups, retailers, service providers
IDFC FIRST:
- Offers both secured and unsecured loans
- LAP, Equipment Loans, and Working Capital facilities require asset backing
- Requires:
- 2–3 years of ITRs
- Audited financials
- Property papers (for LAP)
| Parameter | InCred | IDFC FIRST |
| Collateral Required | ❌ | ✅ (for secured loans) |
| ITR Mandatory | ❌ (flexible) | ✅ (2+ years preferred) |
| Bank Statement | ✅ (6 months) | ✅ (12 months typically) |
Borrower Profile and Eligibility
InCred:
- Accepts newer businesses (1+ year vintage)
- Turnover requirement is flexible
- Useful for entrepreneurs with limited credit history or financial proof
IDFC FIRST:
- Targets well-established businesses
- Requires:
- Minimum turnover: ₹1 crore annually
- Business vintage: 3 years+
- Positive net worth + profit track record
RupeeQ Tip:
If you’re new in business or don’t have ITRs yet, InCred offers more flexible onboarding. If you’re a doctor or professional, IDFC FIRST may offer better rates and tenure.
Who Should Choose Which Lender?
Your choice should depend on how established your business is, your documentation strength, and your funding needs.
| Scenario | Recommended Lender |
| Startup or new business (<3 yrs) | InCred |
| Professional looking to expand practice | IDFC FIRST |
| Want loan without collateral | InCred |
| Want loan against property or higher loan value | IDFC FIRST |
| Need funding in 2–3 days | InCred |
| Need long-term EMI flexibility | IDFC FIRST |
| Running a manufacturing unit with GST and ITRs | IDFC FIRST |
Summary: InCred vs IDFC FIRST – Which Offers More Flexibility?
| Feature | InCred | IDFC FIRST |
| Collateral-Free | ✅ | ✅ (up to ₹1 crore) |
| Interest Rate (Starting) | 14.5% p.a. | 9% p.a. |
| Max Tenure | 3 years | 25 years |
| Loan Size | ₹1 lakh – ₹10 crore | ₹50,000 – ₹15 crore |
| Documentation Ease | ✅ | ❌ (more detailed) |
| Digital Process | ✅ Fully online | ❌ Partially online |
| Prepayment Flexibility | ✅ | Varies by product |
Conclusion
Both lenders serve different segments of business owners. If you want quick, paper-light, unsecured loans, InCred is a strong pick. But if you prefer structured products, lower interest rates, or secured funding for long-term goals, IDFC FIRST gives you more options.
At RupeeQ, we help you:
- Compare both lenders based on your profile
- Check eligibility without affecting your credit score
- Access quick funding or structured loans from the comfort of your phone
Get your best-fit business loan offer through RupeeQ today.
FAQs: InCred vs IDFC FIRST for Business Loans
Q1. Can I get a loan from InCred without ITRs?
Yes. InCred may approve loans based on bank statements and business proof.
Q2. What’s the maximum tenure IDFC FIRST offers?
Up to 25 years for secured loans like Loan Against Property.
Q3. Which lender is better for a quick, unsecured loan?
InCred is faster, especially for MSMEs and startups.
Q4. Does IDFC FIRST offer working capital limits?
Yes, it offers fund-based and non-fund-based working capital loans and overdraft facilities.
Q5. Are both lenders available through RupeeQ?
Yes. You can compare offers from InCred, IDFC FIRST, and other partners through RupeeQ in a few simple steps.
