HDFC Bank Business Loan

HDFC Bank Business Loan Highlights

HDFC Bank offers loans for traders, professionals, and small or mid-sized companies. Borrowers can apply for unsecured loans or opt for secured facilities to access higher limits. MSME-focused options are also available. Applications are mostly handled online, making the process simple. Funds can be used for working capital, stock, or expansion.

Particulars	Details
Loan Amount	Up to ₹75 lakh unsecured; higher amounts under secured loans
Tenure	12 to 48 months for term loans; flexible limits for overdraft/working capital
Type of Borrowers	Proprietorships, partnerships, private limited companies, LLPs
Instant Options	Pre-approved offers for eligible customers are processed quickly
Collateral Requirement	Not needed for unsecured loans; required for larger secured limits
Application Mode	100% online application through HDFC Bank or Urban Money

Features & Benefits of HDFC Bank Business Loan

HDFC Bank offers a range of loan options tailored to businesses of varying sizes and needs. The focus is on making funds available without long delays or excessive paperwork. Most of the process is handled online, making it easier for busy business owners to manage their operations.

• You can apply directly the Urban Money platform. This eliminates the need for branch visits, saving applicants time.
• Loan amounts of up to ₹75 lakh can be accessed without requiring property to be pledged as collateral. This is useful for borrowers who prefer not to block assets as security.
• Pre-approved offers are available to select customers. If eligible, funds are credited quickly, sometimes within a short span of time.
• HDFC MSME loan schemes are designed for micro, small, and medium enterprises. These help smaller businesses that may face challenges in arranging collateral.
• Repayment options are flexible and can be structured to align with the business’s cash flow. This avoids rigid repayment terms.
• Working capital can be managed through facilities like Dropline Overdraft. Interest is charged only on the amount used, which supports daily operations better.
• In urgent situations, the disbursal process is faster. This allows owners to pay suppliers or purchase stock without long waiting periods.

Types of HDFC Bank Business Loans

HDFC Bank does not restrict itself to a single loan product. It offers different formats to suit the needs of traders, MSMEs, and larger companies. Each option is created to match a specific stage of business growth.

• Unsecured Business Loan: A term loan that goes up to ₹75 lakh without the need for collateral. It is often chosen by shop owners, service providers, and professionals who want quick funds without risking assets.
• Working Capital Loan/Overdraft: This facility helps businesses with uneven cash flow. Borrowers can withdraw funds as needed, and interest is charged only on the amount actually used.
• HDFC MSME Loan: Specially designed for micro, small, and medium enterprises. Government initiatives support some schemes and provide access to funding with minimal security requirements.
• Dropline Overdraft Facility: A flexible overdraft option where the limit reduces gradually over time. It supports daily operations, such as supplier payments and short-term expenses.
• HDFC Corporate Loan: Larger businesses and companies with higher turnover can apply for secured corporate loans. These loans offer bigger ticket sizes but usually require collateral.
• Pre-approved Business Loan: Eligible customers with strong financial records may receive instant offers. If eligible, funds are released promptly without lengthy checks or additional paperwork.

What is the Eligibility Criteria For a HDFC Bank Business Loan?

HDFC Bank has established specific requirements that applicants must meet before submitting an application. These requirements make sure the borrower has a stable income and repayment ability.

Eligibility Factor	Requirement
Age	Minimum 21 years at application; maximum 65 years at loan maturity
Business Continuity	At least 3 years in the current business
Annual Turnover	₹40 lakh or more is generally expected for unsecured loans
Credit Score	A CIBIL score of 750 or higher is usually preferred
Eligible Entities	Proprietorships, partnerships, LLPs, and private limited companies

What are the Factors Affecting HDFC Bank Business Loan Eligibility?

Basic rules are only the starting point. HDFC Bank considers several other aspects before determining the loan outcome. Here are some factors affecting HDFC Bank Business Loan eligibility:

• Credit History: A thorough review of past repayment records is conducted. A strong credit profile increases your chances of approval. Missed or delayed payments reduce trust.
• Business Stability: Firms with steady income appear safer. Seasonal or inconsistent businesses may face tighter terms.
• Banking Pattern: Healthy inflows and outflows in the account show the ability to manage regular EMIs. Weak account activity can lower approval chances.
• Industry Type: Some industries are marked as higher risk. Applications from such sectors may face stricter checks or longer approval times.
• Existing Liabilities: If the borrower already has multiple loans, the bank may limit or decline the new request.

How to Apply for HDFC Bank Business Loan on Urban Money?

The process of applying for an HDFC business loan through Urban Money is fully digital. Applicants can complete the entire form online and expect support during each stage. Here are the steps you need to follow:

• Visit the official Urban Money website using a browser on your computer or mobile device.
• Go to the Loans section from the main navigation menu, where different products are listed.
• Select ‘Business Loan’ from the available options to proceed to the relevant category.
• From the lender list, select HDFC Bank Business Loan, which is featured among the listed banks.
• Click “Apply Now” to open the online application form on the screen.
• Please enter your full name, active mobile number, current city, and the type of loan you are seeking.
• Submit the form online, after which the Urban Money team will contact you to explain the documents and guide you through the following steps.

Processing Fee & Other Charges for HDFC Bank Business Loan

HDFC Bank applies certain charges while processing and maintaining a business loan. These fees cover application costs, account handling, and early closure conditions. The exact amount can vary depending on the loan type, tenure, and borrower profile.

Charge Type	Details
Login / Application Fee	Non-refundable charges may apply at the time of login or application submission.
Processing Fee	Up to 2.50% of the loan amount, subject to minimum and maximum caps decided by the bank.
Prepayment / Foreclosure Charges	If the loan is closed early, charges may be applied based on the number of EMIs that have been completed. Typically, 4% between 7–24 months, 3% between 25–36 months, and 2% beyond 36 months.
Penal Interest	An additional interest, typically 2% per month above the contracted rate, may be charged on overdue amounts.
Documentation Charges	Stamp duty and statutory charges are applied in accordance with state laws. Additional documentation costs may also be added.
Other Service Charges	Cheque return fees, account maintenance charges, and statement issuance charges are applied as per the schedule.

HDFC Bank Business Loan Interest Rates

HDFC Bank determines the rate based on the borrower’s profile. Factors like credit score, turnover, and business stability influence the final rate. The bank periodically revises its lending benchmarks.

Loan Type	Indicative Interest Rate Range
Unsecured Business Loan (Term)	Around 10.75% to 22.50% p.a., depending on credit profile
Working Capital / Overdraft Facility	Generally higher, as it is collateral-free and flexible
HDFC MSME Loan (secured/unsecured)	Varies by scheme; unsecured MSME loans may carry higher rates
HDFC Corporate Loan (secured, large ticket)	Typically lower, as security or collateral is provided

What are The 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.

CIBIL Score

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.

Business Experience

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.

Annual Turnover

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.

Good Relationship

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.

Repayment History

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.

Documents Required for HDFC Bank Business Loan

To apply for an HDFC business loan, applicants must provide personal, business, and financial documents. The exact list can change based on the loan type, but most borrowers are asked for the same basic set.

Document Type	Examples
KYC Documents	PAN card, Aadhaar card, passport, voter ID
Business Proof	Registration certificate, shop licence, partnership deed, and incorporation certificate
Financial Statements	Audited balance sheet, profit & loss account, and income tax returns of the last 2–3 years
Bank Statements	Last 6 months’ bank account statements
Compliance Records	GST registration, GST returns, or other applicable tax documents
Loan Application	Duly filled and signed application form with photographs

How does the EMI calculation Work for HDFC Bank Business Loans?

Repayment of an HDFC Bank business loan is made through Equated Monthly Instalments (EMIs). Each EMI contains two parts:

• Principal
• Interest

The amount is spread across the entire loan tenure, ensuring a predictable repayment schedule.

The formula for EMI calculation is:

EMI=(1+R)N−1P×R×(1+R)N​

Where:

• P = Loan Amount
• R = Monthly Interest Rate (annual rate ÷ 12 ÷ 100)
• N = Loan Tenure in months

Examples:

• A loan of ₹20,00,000 for 48 months at 14% per annum results in an EMI of approximately ₹54,653.
  
• A loan of ₹25,00,000 for 48 months at 16% per annum results in an EMI of approximately ₹70,851.
  
• A loan of ₹75,00,000 for 60 months at 15% per annum results in an EMI of approximately ₹1,78,424.