HDB Finance Business Loan

Housing Development Board (HDB) financial services is a subsidiary of HDFC Bank that offers collateral-free business loans for amounts up to Rs. 30 lakh with a repayment tenure of up to 48 months. HDB Finance offers unsecured business loans, enterprise business loans, and micro-lending to its customers.

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Note: Business loan interest rates are updated as on October 2022.

Eligibility Criteria 

Note: For Private Companies and Partnership Firms, their business should be in profit for the past 2 years.

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Fees & Charges

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. Fees & Charges are updated as of October 2022.

Customer Care Number: +91 44 4298 4541

Eligibility Criteria & Documents Required

For Self-Employed Professionals

Self-employed professionals, including doctors, architects, company secretaries, and chartered accountants can avail business loan:

• The applicant should have work experience of a minimum of 3 years at the time of applying for the loan
• The minimum annual income should be Rs. 1 Lakh per annum for metro cities and Rs. 75000 per annum for other cities

Documents Required

• Identity proof: Passport/PAN card/Aadhar card/Driving License/Voter’s ID/Photo Ration Card
• Address proof: Driving license / Voter’s ID Card / Ration Card / Utility Bill (within last 3 months) / Passport / registered rental agreement
• Date of birth proof: Passport/PAN card/driving license/birth certificate/mark sheet of 10^th or 12^th grade showing the date of birth
• Bank statements: Bank statements of the last 3 months or passbook of the past 6 months
• Latest Income Tax Return along with computation of income, B/S & P&L a/c for the last 2 years certified by a chartered accountant

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For Self-Employed Individuals

For self-employed individuals include sole proprietors, partners, and directors in business manufacturing, trading, or services.

• The applicant should have a work experience of a minimum of 4 years at the time of applying for the loan, out of which 2 years should be in the same business
• The minimum annual income should be Rs. 1 Lakh per annum for metro locations and Rs. 75000 per annum for non-metro cities

Documents Required

• Identity proof: Passport / PAN card / Aadhar card / driving license / Voter’s ID / photo Ration Card
• Address proof: Driving license / Voter’s ID / ration card / utility bill (within last three months) / passport / registered rental agreement
• Date of birth proof: Passport / PAN card/driving license / birth certificate/mark sheet of 10^th or 12^th grade showing the date of birth
• Bank statements: Bank statements of the last 3 months or passbook of the past 6 months
• Latest Income Tax Return along with computation of income, B/S & P&L a/c for the last 2 years certified by a chartered accountant
• Proof of continuation: trade license / establishment / sale tax certificate
• Other mandatory documents like partnership deed, copy of MOA, AOA and board resolution, company declaration copy, etc.

For Partnership Firms and Private Companies

• The applicant should have a work experience of a minimum of four years at the time of applying for the loan, out of which two years should be in the same business
• The minimum annual income should be Rs. 1 lakh per annum for metro locations and Rs. 75000 per annum for non-metro locations
• The business should show profits during the past 2 years for the hassle-free application of loan

Documents Required

• Identity proof: Passport / PAN card / Aadhar card / Driving License / Voter’s ID / photo ration card
• Address proof: Driving license / Voter’s ID card / ration card / utility bill (within last 3 months) / passport / registered rental agreement
• Date of birth proof: Passport / PAN card / driving license / birth certificate / mark sheet of 10^th or 12^th grade showing the date of birth
• Bank statements: Bank statements of the last 3 months or passbook of the past 6 months
• Latest Income Tax Return along with computation of income, B/S & P&L a/c for the last 2 years certified by a chartered accountant
• Proof of continuation: trade license / establishment / sale tax certificate
• Other mandatory documents like partnership deed, copy of MoA, AoA and board resolution, company declaration copy, etc.

 Note: HDB Financial Services may ask for certain original documents and not copies.

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FAQs 

Q. Who can apply for a Business Loan from HDB Finance?

Ans. Business loans from HDB Finance can be availed by MSMEs, business owners, entrepreneurs, self-employed professionals, private and public limited companies, sole proprietorships, partnership firms, limited liability partnerships, and many more financial entities.

Q. What is the processing fee charged by HDB Finance on a business loan?

Ans. The processing fee charged by HDB Finance is 2% of the sanctioned loan amount.

Q. What is the minimum and maximum tenure of a business loan in HDB Finance?

Ans. The repayment tenure of business loans is from 12 months to 48 months.

Q. How to check HDB loan application status?

Ans. To check the loan application status you can click on the link below and enter details, such as Mobile Number and Loan number to receive an OTP to further check the status.

https://www.hdbfs.com/custom_scripts/loan-status.php

Q. Are there any foreclosure and part-prepayment charges?

Ans. The foreclosure and part-payment charges shall vary from scheme to scheme.

Q. What are the ways to repay Business Loans?

Ans. The business loan can be repaid in form of EMIs and can be repaid via net banking, PDC, ECS, etc.

Q. Are there any business loans for women entrepreneurs?

Ans. There is no specific loan scheme targeting women entrepreneurs but loans for self-employed professionals can be used for the same purpose.

Q. What are the benefits of applying for a Business Loan online from HDB?

Ans. Hassle-free process, less paperwork, instant approval, and quick disbursals are the key benefits of applying for a business loan online.

Q. How to Use HDB Business Loan EMI Calculator?

Ans. A Business loan EMI calculator can be used by mentioning a few basic details like loan amount, repayment tenure, and interest rate.

Q. Can I pay HDB EMI online?

Ans. You can pay EMI online with the help of various banking services, such as net banking, NEFT or IMPS.