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  • HDFC Bank Business Loan

    HDFC Bank offers business loans of up to Rs.50 lakh to help you meet any business-related funding requirements. Prospective loan borrowers need not submit any collateral or security to the lender to avail this loan.

    HDFC Bank Business Loan Details

    Interest Rate 11.90% p.a. - 21.35% p.a. (rack interest rate)
    Loan Processing Fee Up to 2.5% of the loan amount
    Pre-Payment Charges Up to 4% of the outstanding principal
    Loan Amount Up to Rs.40 lakh (up to Rs.50 lakh in select locations)
    Loan Tenure 12 months to 48 months

    How to Get a Business Loan from HDFC Bank

    HDFC Bank allows prospective applicants to apply for business loans online through its official website. The steps to do so are as follows:

    Step 1: Check Your Eligibility Criteria – Before you apply to HDFC Bank for a business loan, you will need to check the lender’s eligibility criteria. The lender will only approve your business loan application if you meet the pre-specified eligibility criteria.

    Step 2: Apply Online through the HDFC Bank Website – Once you check HDFC Bank’s business loan eligibility criteria, you will need to click on ‘Apply Now’, which you will find on the bottom of the lender’s website. If you are a new customer provide your mobile number and tick the box where you authorise the bank to contact you regarding your application for business loan. If you are an existing customer, use your customer ID to log in to your HDFC net banking portal and apply for a business loan.

    Step 3: Receive Approval – Once you submit the online application form, a representative from HDFC Bank will contact you. You will also have to submit the required documentation to the lender, after which you will receive approval. Once your application is approved, the loan amount will be disbursed into your savings bank account.

    Alternatively, if you do not want to apply for a business loan from HDFC Bank online, you can visit the nearest branch of the lender and submit the application form and required documents. In this case, your loan application will be approved after a physical verification of your application form and documents is done by the lender.

    Eligibility Criteria for HDFC Bank Business Loans

    • Self-employed individuals, private limited companies, partnership firms that are involved in the business of trading, manufacturing, or services, and proprietors can apply for this loan.
    • The business is required to have a turnover of at least Rs.40 lakh.
    • Applicants are required to have been in their current business for at least 3 years. Further, they should also have a total of 5 years’ business experience.
    • The business should have been making a profit for at least the last two years and should have a minimum annual income of at least Rs.1.5 lakh per annum.
    • At the time of applying for HDFC Bank’s business loan, prospective borrowers should at least be 21 years of age. Further, at the time of maturity of the loan, the borrower cannot be over 65 years of age.

    Documents Required to apply HDFC Bank Business Loans

    For your business loan application to be considered by HDFC Bank, you will be required to submit certain documents along with your application form. The documents that you will need to submit are as follows:

    • PAN card (applicable for companies, individuals, and firms)
    • Identity proof – The applicant can submit their passport, Aadhaar card, voter ID card, PAN card, or driving licence as ID proof
    • Address proof – The applicant can submit their Aadhaar card, passport, driving licence, or voter ID card as address proof
    • Bank statements of the last 6 months
    • Latest ITR with the computation of income, profit and loss account for the last two years, and balance sheet (these documents will have to be certified/audited by a chartered accountant)
    • Proof of continuation – The applicant can submit their trade licence, ITR, sales tax certificate, etc., as proof of business continuation
    • Certified copy of partnership deed
    • Sole proprietorship declaration
    • Certified true copy of memorandum and articles of association (certified by the director)
    • Board resolution (in original)

    Charges Levied by HDFC Bank for Business Loans

    Apart from the interest rate and processing fee, the charges that may be levied by HDFC Bank for business loans are as follows:

    Category Charges levied
    Overdue EMI interest 2% per month on the overdue principal or interest, subject to a minimum charge of Rs.200
    Stamp duty As per the laws of the state
    Amortisation schedule charges Rs.200
    Cheque bounce charges
    • 1st return - Rs.450 + taxes per instance
    • 2nd in a month- Rs.500 + taxes per instance
    • 3rd onwards- Rs.550 + taxes per instance
    Loan cancellation charges Nil (Interest for the interim period will be charged)
    Cheque swapping charges Rs.500
    Loan closure letter Nil
    Duplicate loan closure letter Nil
    Solvency certificate Not applicable
    Credit assessment charges Not applicable
    Charges for changing from fixed to floating interest rate Not applicable
    Charges for changing from floating to fixed interest rate Not applicable

    Benefits of Taking an HDFC Bank Business Loan

    • The loan can be availed without having to submit any collateral or security.
    • HDFC Bank disburses the loan amount quickly.
    • The lender charges a competitive rate of interest.
    • HDFC Bank offers an easy and simple application and documentation process.
    • Doorstep service is offered by the bank.
    • The loan amount can be used to finance any business-related funding requirement that may have risen.
    • The bank offers a balance transfer facility. A competitive interest rate of 15.75% p.a. and processing fee of 0.99% is offered when you transfer your existing loan to HDFC Bank.
    • Overdraft facility is also offered by the lender.
    • Customers can opt for the Credit Protect Plan by paying a nominal premium.

    FAQs on HDFC bank Business Loan

    1. Can I apply for a business loan from HDFC Bank via phone banking?
    2. Yes, you can apply for a business loan via phone banking. You can also use the SMS service, Click2Talk, and EVA (virtual chat) services to apply for HDFC Bank business loan.

    3. Will HDFC Bank check my CIBIL score before approving my business loan application?
    4. Yes, the lender will check your CIBIL score since it is an indicator of your creditworthiness and repayment ability. If you are looking to borrow a business loan at a reasonable rate of interest, it is advisable to maintain a credit score of over 700.

    5. Can I prepay the outstanding loan amount and pre-closure my loan account?
    6. Yes, you can prepay and pre-close your loan at any time, provided that at least 6 monthly EMIs have been paid to the lender. At the time of pre-closing your loan, you will need to pay the pre-closure fee/penalty.

    7. How do I repay the loan amount?
    8. You will need to repay the loan amount in the form of equated monthly installments or EMIs via post-dated cheques, Electronic Clearing System (ECS), or through a standing instruction to debit the amount from your HDFC Bank account.

    9. Will I be required to have a guarantor to apply for the business loan?
    10. No, the lender does not require business loan applicants to have a guarantor.

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