HDFC Bank Business Loan
HDFC business loans have been curated, keeping in mind the needs of its customers. It offers flexible tenures, competitive interest rates, and minimal documentation to create a hassle free environment for its borrowers. HDFC Bank provides attractive loan opportunities for self employed professionals and MSMEs. The HDFC business loan interest rate ranges from 11.90% p.a. to 21.35% p.a.
Features and Benefits of HDFC Business LoanHave a look at the features given below that will help you comprehend HDFC business loans better.
You can get an HDFC business loan of Rs. 40 lakhs (Rs. 50 lakhs in a few select branches) without the need of a guarantor, collateral, or security for your business expansion or other requirements.
Easy Transfer of Loan Balance
You can transfer your existing business loan to HDFC Bank and enjoy numerous benefits like low EMIs. Interest rates will be charged as low as 15.75% if you transfer the existing loan. The processing fee charged will be as low as 0.99%.
Facility of Dropline Overdraft
HDFC bank provides the facility of overdraft without any security. You only have to pay the interest on the amount which is utilised. The tenure ranges between 12 and 48 months without any requirement of a guarantor or security. This feature provides an attractive rate of interest.
You can verify the eligibility of your business loan online or at any branch within seconds.
HDFC Credit Protect helps you cover the loan by paying only a nominal amount of premium. The benefits of it are innumerable. It provides life coverage, pays off the loan amount in case of death of the customer, thereby protecting the family, and ensures tax benefits can be availed as per the existing laws.
HDFC Business Loan Overview
HDFC business loans have been curated, keeping in mind the needs of its customers. It offers flexible tenures, competitive interest rates, and minimal documentation to create a hassle-free environment for its borrowers. HDFC Bank provides attractive loan opportunities for self-employed professionals and MSMEs.
Eligibility Criteria to Apply for HDFC Business Loan
The HDFC business loan eligibility criteria can be fulfilled by the following individuals:
- Proprietors, self-employed individuals, Partnership firms, and Private Ltd. Co. are in the business of trading, manufacturing, or services.
- The business must have a turnover of a minimum of Rs. 40 lakhs.
- The individuals involved in the present business for a period of minimum 3 years and have business experience of 5 years.
- The individuals whose business has been churning profit for the last 2 years.
- It is mandatory for a business to have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs p.a.
- The minimum age of the applicant applying for the loan must be at least 21, and he should not be older than 65 years at the time of loan maturity.
HDFC Business Loan Fees and Charges
Have a look at the table below to get an idea about the fees for HDFC business loans.
|Rack Interest Rate Range||Min 11.90% & Max 21.35%|
|Loan Processing Charges||According to the board note: For salaried individuals a maximum of 2.5% of the loan amount (minimum ₹1000 and maximum ₹25,000) For self-employed individuals ₹75,000|
|Prepayment- Full or Part||Prepayment in whole or part is not permitted until 6 EMIs have been repaid Part-payment is permitted only after 12 EMIs till 25% of the principal outstanding amount. It is permitted once in a financial year and twice during the entire loan tenure.|
|Pre-payment Charges||06 to 24 months - 4% of the principal outstanding amount 25 to 36 months - 3% of the principal outstanding amount >36 months - 2% of the principal outstanding amount|
|Loan Closure Letter||NIL|
|Duplicate Loan Closure Letter||NIL|
|Solvency Certificate||Not applicable|
|Overdue EMI Interest||2% per month|
|Charges for converting from fixed to floating rate/Charges for converting from floating to fixed rate||Not applicable|
|Stamp Duty & Other Statutory Charges||According to the state’s applicable laws|
|Cheque Swapping Charges||₹500|
|Amortisation Schedule Charges||₹200|
|Loan Cancellation Charges||NIL|
|Cheque Bounce Charges||1st return at Rs.450 + taxes 2nd in a month Rs.500 + taxes 3rd onwards Rs.550 + taxes (10% discount for Senior Citizens)|
Factors Affecting HDFC Business Loan Interest Rates
Borrowers aim to get a business loan that offers a substantial amount at low-interest rates. But every individual does not get the same rate of interest from the bank. There are various factors that a bank or financial institution examines before offering a particular interest rate for a personal loan. The factors affecting HDFC business loan interest rate are:
Nature of Business
Businesses that exhibit a positive and profiting nature are approved loans by lenders with lower interest rates. On the other hand, blacklisted businesses have a negative impact, and the loan is either disapproved or granted with a higher rate of interest.
The lenders always scrutinise your creditworthiness through your CIBIL score. A high CIBIL score means that you are responsible for your credit. Thus, you are granted a loan with a lower interest rate.
Before deciding on the rate of interest for a business loan, lenders also look into your business experience. A person who has a good business background with a long-running business is often offered a lower interest rate. On the flip side, if you have defaulted in the past with non-payments etc., the interest rate offered is higher.
The annual business turnover is an important factor that affects the interest rate of a business loan. A business with a high annual turnover is offered a lower interest rate with a lower EMI amount. Whereas businesses with a poor turnover will be charged a higher interest rate leading to a higher EMI amount.
If you have a stable existing relationship with your bank or financial institution, then you might be offered a lower interest rate as they reward you for being their loyal customer.
A good repayment history and timely repayments of credit are considered a good sign by banks. So, if you have maintained these two aspects, you are more likely to get a business loan at a lower interest rate. In contrast, a poor repayment track record, even with a good CIBIL score, will be offered a higher interest rate.
HDFC Business Loan Interest Rates
The HDFC business loan interest rate ranges from 11.90% p.a. to 21.35% p.a.
Documents Required for HDFC Business Loan
Submit the following documents along with your business loan application for an HDFC Business Loan:
- PAN card (for individual/company/firm)
- Identity proof (Copy of any one of the following)
- Aadhaar Card
- Voter's ID Card
- PAN Card
- Driving Licence
- Proof of address (a copy of any one of the following)
- Aadhaar Card
- Voter's ID Card
- Driving Licence
- Bank statement of the preceding 6 months
- Latest ITR with Balance Sheet, computation of income, previous 2 years profit and loss account (after being audited/certified by the CA)
- Proof of continuation (Trade licence/ITR/Sales Tax Certificate/Establishment)
- Other compulsory documents [Certified Copy of Partnership Deed or Sole Prop. Declaration, Certified true copy of Memorandum and Articles of Association (certified by Director) and Board resolution (Original)]
How Does the EMI Calculation Work for HDFC Business Loans?
Get an idea about your business loan EMI with HDFC online business loan calculator and manage your finances accordingly. Find out your loan EMI in an instant by entering the loan tenure in years, loan amount, and the interest rate in the HDFC EMI calculator. The results will be displayed on your screen. The EMI calculator also provides you with an option to tweak the amounts as per your requirements.
How Does HDFC Compare with Other Lenders?
Glance through the table below to understand the comparison of HDFC business loan interest rate with that of its competitors.
|Lenders||Rate of Interest|
|SBI||8.30% onwards (on SME Loan)|
|Kotak Mahindra Bank||14% onwards|
|Axis Bank||17% onwards|
|Fullerton Finance||17% onwards|
|Bajaj Finserv||17% onwards|
|Yes Bank||17% onwards|
|ICICI Bank||18% onwards|
|Lendingkart Finance||18% onwards|
|IIFL Finance||18% onwards|
|Hero Fincorp||18% onwards|
|Indifi Finance||18% onwards|
|NeoGrowth Finance||18% onwards|
|Tata Capital Finance||17% onwards|
|RBL Bank||19% onwards|
|IDFC First Bank||20% onwards|
|HDB Financial Services Ltd.||22% onwards|
|PNB Business Loan||Based on the Business’s Profile|
|Bank of Baroda||Based on the Business’s Profile|
HDFC Business Loan Customer Care Number
To enquire about the HDFC business loan requirements, you can reach out to the HDFC customer care number at 1800 202 6161/1860 267 6161, which is accessible pan India.
From refinancing to reducing your interest, we have the answers right here.
What is loan foreclosure?
Loan foreclosure is to repay the remaining or outstanding loan amount in a single payment than repaying it in multiple EMIs.
What is the minimum turnover requirement to apply for an HDFC business loan?
The minimum turnover required for a business loan is ₹10 lakh.
Does HDFC check for CIBIL score for business loans?
Yes, every bank and financial institution checks your CIBIL score before approving your business loan.
What is the maximum and minimum business loan amount I can get from HDFC?
HDFC bank offers business loans ranging from ₹50,000 to ₹50 lakh.
How can I speed up my loan approval?
To pace up the loan approval process, you should apply for your loan online, know your credit score, apply for a loan in your bank, etc.
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