HDFC bank, one of the leading commercial banks in India offers a vast range of products and services in term deposits, loans and credit cards. With options of taking short term, medium term and long term loans, the flexibility offered by various HDFC Bank business loan options has encouraged businesses to avail a loan for key purposes like expansion of business or buying a land/factory space, purchase of machinery/inventory and for increasing the working capital.
HDFC Business Loan Interest Rate 2019
|Interest Rate||15.65% onwards|
|Processing Charges||Upto 2.50% of loan amount (Min. Rs. 2,359 – Max. Rs. 88,500)|
|Loan Amount||Max upto Rs. 50 Lakhs|
|EMI Bounce Charges||Rs. 3000 (Inclusive of taxes)|
|Prepayment Charges||07-24 Months – 4% of Principal Outstanding Amount
25-36 Months – 3% of Principal Outstanding Amount
More than 36 Months – 2% of Principal Outstanding Amount
|Prepayment Condition||No pre-payment permitted until repayment of 6 EMIs|
Note: The facts and figures provided above are illustrative and subject to periodic change
|Fee & Charges|
|Cheque Swapping Charges||Rs. 500|
|Amortization Schedule Charges||Rs. 200|
|Cheque Bounce Charges||Rs. 550 per bounced cheque|
|Legal/Incidental Charges||At Actual|
|Loan Cancellation Charges||Nil|
|Stamp Duty||As per applicable state laws|
|Loan Closure Letter||Nil|
|Duplicate Loan Closure Letter||Nil|
Among all banks in India, HDFC Bank owns the highest market shares for providing business loans and it tops the list for offering best business loan offers with attractive interest rates. Also HDFC bank provides doorstep service with easy documentation process. Get the fast disbursal of business loan within 48 hours*.
Compare Business Loan with other Banks:
|State Bank of India||ICICI Bank||Axis Bank|
|Bajaj Finserv||IDBI Bank||Bank of Baroda|
Eligibility Criteria for HDFC Bank Business Loan
|Eligibility factors||Eligibility criteria|
|Age of the Applicant||Min: 21 years and Maximum: 65 years. (At time of Loan Maturity)|
|Status of Business||Min. 3 Years with 5 years of experience|
|ITR (Income Tax Returns)||Min. Rs. 1.5 Lakhs per annum|
|Business Turnover||Min. Rs. 40 lakhs|
Documents Required for Applying HDFC Business Loan
At the time of applying for business loan, the borrower will have to provide documents so that the bank can process and verify the information of the applicant and his business.
Following documents are required to be provided by the borrower for obtaining business loan:
- Address proof: Aadhaar card/ Driving license/ Voter card/ Passport
- Pan Card of the proprietor/ firm/ company
- Bank account statement for last 6 months
- Identity proof: Pan card/ Aadhaar card/ Driving license/ Voter card/ Passport
- License used for carrying out trade activities like sales tax license, establishment license. License providing evidence regarding business continuation.
- ITR: Income Tax returns duly filed with the income tax department for a minimum of 2 financial years.
- ITR should be accompanied with balance sheet, income statement and computation of income.
- Ownership proof of office or residence
Mode of paying EMI (Equated Monthly Instalment)
The borrower can pay EMI either by cheque or through ECS i.e. electronic clearing system. In case of payment made through cheques, the borrower has to give post-dated cheques to the bank in advance. However, in ECS system of payment, the borrower has to give standing instructions to the bank for accepting the debit of the EMI amount. An application form for activating ECS system should be submitted to the bank by the borrower.
HDFC bank provides flexibility in making payments to EMIs. The borrower can opt for either of the payment modes available with the bank. He can make changes as per his suitability by submitting an application for change in mode of EMI payment. This application is available on the website of the bank and the branches of bank.
Time Taken to Approve Business Loan by HDFC Bank
HDFC bank ensures to provide efficient and fast processing of business loans. The loan sanction and its disbursement process is really quick so that the borrower don’t face any hassles when funds are required.
After submitting the loan application by the applicant, HDFC bank shall approve loan in a minimum period of 48 hours but can extend up to five working days depending on the papers submitted or applicants’ profile. However, HDFC bank has the full authority of sole discretion for approving or rejecting business loan.
HDFC Life Group Credit Protect
HDFC bank has a unique product which can secure the borrower’s loan amount. An insurance plan in the name of credit protection is offered by HDFC bank to repay the loan in case of unfortunate demise of the loan taker.
The borrower can take a credit protect insurance plan which will insure his loan amount at minimal premium. This is one way of taking care of the borrowers’ family in case of unwarranted circumstances like death of the borrower or business owner due to reasons being accident or naturally. The credit protection insurance policy will ensure to pay the balance outstanding loan amount to the bank.
However, the premium is reduced from the disbursement of loan and the balance loan amount is credited to the borrowers’ account or business account as the case be.
- This product provides adequate cover to repay the outstanding business loan
- Enables the borrower to enjoy peace of mind
- Ensures the family is not financially impacted due to the business loan in hour of crisis
Prepayments to HDFC Business Loan
Prepayments are early payments made by the borrower towards the loan taken. Generally, prepayments are lump-sum amount paid by the borrower towards their loan account. Borrower availing a HDFC business loan can make prepayments. The prepayments made are deducted from the balance outstanding principal amount of the loan impacting in reduction of loan amount.
However, below restrictions are imposed by the bank before making prepayments:
- Paying a minimum of 6 EMIs and
- A minimum period of 6 months from the loan date.
However, there will be foreclosure charges applicable to the borrower.
HDFC bank has provided flexible option for making prepayments to loans taken for business purpose. The borrower can make prepayments from 12 months to 48 months of taking the loan.
Delay in Making Payments Towards EMIs by the Borrower
In case the EMI cheque bounces or ECS system fails to credit the EMI, a charge of Rs.550/- as penalty will be levied by the bank. Also, in case of delay or default on the borrowers’ end to make payments towards EMIs, HDFC bank will charge a late payment fees on the outstanding loan amount at the rate of 24% from the default date.
Customer Care Service of HDFC bank
Toll Free Numbers:
1800 258 3838
1800 22 4060
1800 425 4332
HDFC Chat Options: Webchat, SMS or click2talk
Click on the below link to get Toll Free Numbers for Indian customers
Click on the below link to get Toll Free Numbers for NRIs