The company specializes in providing business loans for Small and Medium Sized Enterprises (SMEs). Hero FinCorp offers business loan which are provided without security that serves various business related purposes, including business expansion, buying raw material, machinery and purchasing new plant.
Hero FinCorp Unsecured Business Loan 2021
|Interest Rate||18% onwards|
|Loan offered to||Public and Private firms, Sole proprietorship and Self-employed professionals|
|Loan Amount||From Rs. 5 lakh to Rs. 25 lakh|
|Repayment Tenure||Up to 36 months|
|Credit Score||More than 750|
|Collateral / Security||Not required, except Secured Term Loan|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges
Apply for Business Loan @ 11.90% onwards per annum Apply Now
Eligibility for HeroFincorp Unsecured Business Loans
- Minimum 5 years of experience of SME businesses
- Good credit score and financial history
- Indian citizen with no criminal record
- Applicant with no previous default with any financial institution
Types of Business Loans offered by Hero FinCorp
1) Bill Discounting / Purchase Invoice Finance / Invoice Discounting
Sales Bill Discounting is a type of business loan where the seller can avail money in lieu of the bills that are yet to be paid by their customers. The loan is offered at a discounted invoice value and can be repaid once the customer pays the actual bill after the agreed credit period.
Purchase Invoice Finance is primarily offered against the purchase invoice for quick disbursal of funds for the business so that it can meet its daily purchase requirements easily.
Features of Bill Discounting Loan
- As per industry standards and lending ratio
- Collateral is not required for high rated business enterprises
- Loan tenor is up to 4 months
2) Working Capital Term Loans
Working Capital Term Loan is majorly availed to meet the operational costs of the enterprises and companies. Working capital is known to be an unsecured loan where no collateral is required.
Features of Working Capital Term Loans
- Interest Rate: 11% onwards
- Loan amount: Up to 5 years
- Loan tenure offered goes up to maximum 3 years
- LTV (Loan-to-Value) ratio of 75%-80% against collateral or security is provided
3) Working Capital Demand Loans
Working Capital Demand Loans are also known as revolving working capital loans which are availed to meet the daily operation costs of an enterprise. This type of loan provides the basic cash flow for various business related purposes.
Features of Working Capital Demand Loans
- Loan tenure up to 1 year
- There are no pre-payment penalty charges
- Interest is paid on the utilized amount only
- LTV ratio is up to 90% against collateral or security
- Loan can be applied online only
4) Secured Term Loan
Secured term loan are opted to finance both operational cost and capital expenditure of a company. As the name suggests, it’s a secured loan and required for the purchase of plant or machinery, land or building, construction activities, etc.
Features of Secured Term Loan
- Majorly availed by small, medium and large business enterprises
- Interest rate: 11% onwards
- Loan amount: Up to Rs. 7 crore
- Repayment tenure: Up to 7 years
- LTV ratio is up to 90% against security or collateral provided
- Collateral accepted, including: properties, plant, machinery, land, building and many more
5) Project and Acquisition Finance
Project and Acquisition Finance is offered to provide funding applicable to special projects, strategic buyouts and purchase of new business units. Few key elements which are considered before providing the finance include timelines, cash flows, total cost, repayment structure, means of finance, etc.
6) Medical Equipment Financing
The company provides new and refurbished medical equipment for doctors, nursing homes, hospitals and diagnostic centres.
Features of Medical Equipment Financing
- Interest rates staring at 11% onwards
- Loan amount from Rs. 10 lakh onwards
- No collateral required
- Repayment tenure up to 7 years
- Equipment finance is applicable on medical devices including X-Ray machines, dental chairs, ultrasound doppler, CT/MRI scanner, C arms Cath-lab, etc.
7) Machinery Loan
As the name suggests, this type of loan is offered to expand the business by availing machinery loan for the purchase of new or refurbished machinery from authorized dealers and manufacturers.
Features of Machinery Loan
- Purchase of new or refurbished machinery
- LTV ratio is up to 75%
- Repayment tenure is up to 7 years
- Flexible schemes, as per your business requirements
Documents Required for Loan Application
- Last 3 years’ audited financial statements and projections
- Profiles and KYC of directors and partners
- Company constitution documents and registration certificates
Hero FinCorp offers online EMI Calculator that helps consumers to calculate the EMIs they need to repay by just filling loan details like interest rate, loan amount and loan tenure. The calculator will provide the EMI amount that the borrower needs to repay in-time with his/her desired interest rates and loan amount.
Calculate you Monthly EMI on – Business Loan EMI Calculator
Hero FinCorp Business Loan Benefits
- Competitive Interest Rates
- Flexible repayment tenures
- Hassle-free documentation process
- Quick and speedy approvals
- Transparent loan process
Hero Fincorp Business Loan Customer Care Number
For Retail Customer Care
For Corporate Customer Care
Q. What are SME loans in India?
Ans. SME loans are the funding support is offered to Small and Medium Enterprises to help in their business growth and expansion. These loans are availed to meet the daily working capital requirements, to manage business cash flow and meet various other business related requirements.
Q. What is the mode of repayment?
Ans. The loan repayment can be made in form of EMIs and in form of cheques, net banking, PDC, ECS, etc.
Q. What is the loan tenure or duration for an Unsecured Business loan?
Ans. The repayment tenure of unsecured business loans offered by HerofinCorp is from 12 months to 36 months. However, for secured loans is up to 7 years.
Q. How much business loan can I avail from Hero FinCorp?
Ans. The minimum loan amount that can be availed is Rs. 1.51 lakh and maximum loan amount is up to Rs. 7 crore.
Q. Are there any Foreclosure and Part / Pre-payment charges?
Ans. The foreclosure, part payment and pre-payment charges are charged at nominal rates and shall vary by sub-product and/ or location.
Q. Is there any impact on my credit score if I foreclose my loan?
Ans. No, there is no impact on either your CIBIL score nor credit history.
Q. For what tenors does Hero FinCorp extend working capital finance?
Ans. The maximum repayment tenure for a secured loan is up to 1 year.
Q. How long does it take to get the loan from Hero FinCorp?
Ans. The loan approval duration of any type of business loan shall take approximately 10 – 15 working days.
Q. What is the current interest rate on a commercial loan?
Ans. The minimum interest rate offered by HerofinCorp is 11% onwards for their commercial loan, working capital loan and secured business loans.