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HDFC Bank Business Loan

Apply HDFC Bank Business Loan

Processing Fee

2.5%

Max Tenure

NULL

Best Rate

15.50%

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HDFC Bank Business Loan

HDFC Bank has attractive business loan products up to Rs. 50,00,000 which help the Corporate or the SME sector to start a new business or to upgrade or expand the operations of the existing business. HDFC provides easy and access to secured and unsecured business loans to the borrowers at attractive rates and minimal documentation that enable the organization to get timely loans for their businesses and thereby safeguard their operations as well as enhance their position in the market.

HDFC Bank Business Loan

HDFC Bank Business Loan Eligibility

The eligible persons for HDFC Business loans are the following individuals and entities that meet the many eligibility criteria set by the Bank in this regard.

The list of eligible persons engaged in manufacturing, trading or service activities is,

  • Self-employed individuals
  • Proprietors
  • Private Limited Companies
  • Partnership Firms

Following are the eligibility criteria set by the Bank for the above eligible individuals

Age Criteria

Minimum age of the individual applicant should be 21 years and maximum age of the applicant cannot exceed 65 years at the time of maturity of the loan.

Business turnover

The minimum required business turnover of an entity to be eligible for these loans is Rs. 40,00,000.

Minimum Income

HDFC Bank requires the applicants to have a minimum annual income of Rs. 1,50,000 per annum to be eligible for the business loans offered by the Bank.

Business Existence

The individuals have to be in the current business for a minimum period of 3 years and have a total business experience of 5 years. The businesses that are profit making for the past 2 years are also eligible for the HDFC business loans.

Documentation for HDFC Bank Business Loans

HDFC bank has mentioned a comprehensive list of documents that are required to be submitted along with the application form as part of the application process for the Bank’s Business Loans

Following is the list of documents required by the Bank to apply for Business loans.

  • PAN Card is a mandatory requirement for any company or firm or individual
  • Identity proof of the applicant (Aadhaar Card/ Passport/ Voter’s ID/ PAN Card/ Driving License)
  • Address Proof of the applicant (Aadhaar Card/ Passport/ Voter’s ID/ Driving License)
  • Bank Statements for the preceding 6 months
  • Audited Balance Sheet and Profit and Loss Statement for the past 2 years (audited or certified by a CA) along with latest ITR and Computation of Income
  • HDFC also requires the applicants to submit the proof of business continuation (ITR/ Trade License/ Establishment/ Sales Tax Certificate)
  • Mandatory documents
    • Sole Proprietorship Declaration 
    • Certified copy of Partnership Deed
    • Certified True Copy of Memorandum and Articles of Association (certified by Director) and Board Resolution (original copy)

Features and Benefits of HDFC Business Loans

The business growth loan of HDFC Bank can be availed without any hassles and can be easily transferred from any other Bank or financial institution. The details of the Bank’s Business Loans are provided hereunder.

Amount of Loan sanctioned

HDFC provides business loans up to Rs. 40,00,000 or even up to Rs. 50,00,000 in select locations. These loans are available without any collateral or any security.

Rate of interest

HDFC enables the applicants to easily transfer their existing business growth loans from any other financial institutions or any other Bank at very competitive rates. The current rate of interest offered by the Bank on such loans is 15.75% per annum.

Processing Charges

Processing charges on existing loans that are transferred to HDFC Business growth Loan are very nominal and charges are 0.99% of the loan amount.

In other cases, the processing charges on HDFC Business loans are up to 2.5% of the loan amount. This amount is further subject to the following restrictions,

  • Minimum Rs. 2,359
  • Maximum Rs. 88,500

Tenure

HDFC Bank offers business loans for a flexible repayment period. These loans can be availed for a period of 12 months to 48 months.

Dropline Overdraft Facility

HDFC also provides the unique benefit of overdraft facility on its business growth loans. This limit is set in a separate current account which reduces on a monthly basis till the end of the tenure of the loan. The borrower has to pay interest only on the amount of such overdraft facility utilized by him/her. Such facility can be obtained for an amount ranging from Rs. 5,00,000 to Rs. 15,00,000.  HDFC does not require any guarantor or security for such a facility. The borrower is also not allowed the option of foreclosure or part closure of the loan amount in the first 6 months that such limit is set or facility provided.

Easy access to eligibility check and prompt disbursal

Borrowers have the option to check their eligibility for the HDFC Business Loans via online banking or by directly visiting the branch of the Bank. HDFC provides prompt eligibility checks of the applicants for its business loans in as less as 60 seconds which in turn enables them to get faster access to the loans.

Credit Protect

HDFC Bank provides a credit cover on the business loan borrowed from the Bank. This credit cover has a lot of benefits which are discussed below.

  • This cover ensures protection to the family of the borrower by paying off the loan amount in case of death of the borrower.
  • The life cover provided by this credit protect provides peace of mind to the borrower.
  • Credit Protect is a single convenient package that provides loan as well as insurance along with many tax benefits.
  • Premium for Credit Protect will be deducted for the Loan amount sanctioned at the time of disbursal of such loan.
  • Credit Protect or Payment Protection Insurance plan insures the principal outstanding amount of the loan up to the maximum loan amount in the event of natural or accidental death of the borrower.

HDFC Business Loan Charges

Following are the various charges applicable on the HDFC Business Loans

Charges

Amount/ Rate

Prepayment Charges (allowed only after completion of 6 months of the loan taken)

07-24 months – 4% of the principal outstanding

25-36 months – 3% of the principal outstanding

More than 36 months – 2% of the principal outstanding

Overdue EMI Interest Charge

2% per month on EMI or principal overdue (Minimum Rs. 200)

Change from loan on fixed rate to floating rate or vice-versa 

NIL

Credit assessment charges

NA

Amortization schedule charges

Rs. 200

Loan Cancellation charges

NIL (interest to be charged on the period from loan disbursement to loan cancellation

Cheque Bounce Charges

Rs. 550 per cheque bounce

These charges stated above are excluding the applicable taxes from time to time.

FAQs – HDFC Business Loans

1. What are the security or collateral requirements of the Bank for its Business Loans?

HDFC Bank does not require any security or collateral for its business loans.

2. What is the processing time of the business loan of the Bank?

Upon duly submitting the application form and all the required documents, HDFC Bank will process the loan application within 5 working days and sanction the loan amount provided such application is approved.

3. What is the loan amount that can be sanctioned under HDFC Business Loans?

Applicants can get business loans from Rs. 50,000 to Rs. 50,00,000 under HDFC Bank Business Loans.

4. How can the borrower repay the business loan taken from HDFC?

Borrower can repay the HDFC Business Loans through any of the following means

  • EMIs (Equated Monthly Installments)
  • Electronic Clearing Systems (ECS)
  • Standing Instructions to debit the HDFC current account or Savings account
  • Post Dated Cheques

5. What is the tenure for Business Loans?

The tenure of HDFC Business loans is 12 months to 48 months.

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