HDFC bank, one of the leading commercial banks in India offers a range of banking products and services at competitive interest rates. The bank provides business loans at rack interest rates that start from 13% onwards. With options of taking short term, medium term and long term loans, the flexibility offered by HDFC Bank business loan options has encouraged businesses to avail a loan for key purposes like business expansion, buying land/factory space, purchase of machinery/inventory, increasing the working capital, etc.
HDFC Business Loan Interest Rate 2020
| Interest Rate | 13% onwards |
| Processing Charges | Upto 2.50% of loan amount (Min. Rs. 2,359 – Max. Rs. 88,500) |
| Loan Amount | Max upto Rs. 75 lakh |
| 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 |
| Repayment Period | 12 – 48 months |
| Prepayment Condition | No pre-payment permitted until repayment of 6 EMIs |
| Collateral | Not required |
*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. HDFC Bank’s 1 year MCLR as on 7th Aug 2020 is 7.35%.
| 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 |
| Solvency Certificate | Not applicable |
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 |
| Entities that can avail business loan | Self employed professionals, Sole Proprietorship, Private Ltd. Companies and Partnership Firms engaged in the Manufacturing, Trading or Services sectors. |
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. Borrowers availing HDFC business loans can make prepayments at the bank discretion. 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.
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:
- Identity proof: Pan card/ Aadhaar card/ Driving license/ Voter’s ID card/ Passport
- Address proof: Aadhaar card/ Driving license/ Voter card/ Passport
- PAN Card of the proprietor/ firm/ company
- Bank account statement for last 6 months
- 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
- License used for carrying out trade activities like sales tax license, establishment license. License providing evidence regarding business continuation
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 (SIs) 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/She can make changes as per his/her 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.
Customer Care Service of HDFC bank
Toll Free Numbers:
1800 258 3838
1800 22 4060
1800 425 4332
Customer Care Phone Banking Numbers
| Ahmedabad | 079 61606161 |
| Bangalore | 080 61606161 |
| Chandigarh | 0172 6160616 |
| Chennai | 044 61606161 |
| Cochin | 0484 6160616 |
| Delhi and NCR | 011 61606161 |
| Hyderabad | 040 61606161 |
| Indore | 0731 6160616 |
| Jaipur | 0141 6160616 |
| Kolkata | 033 61606161 |
| Lucknow | 0522 6160616 |
| Mumbai | 022 61606161 |
| Pune | 020 61606161 |
HDFC Chat Options: Webchat, SMS or click2talk
Click on the below link to get Toll Free Numbers for Indian customers
https://www.hdfcbank.com/personal/find-your-nearest/find-phone-banking
Click on the below link to get Toll Free Numbers for NRIs
https://www.hdfcbank.com/htdocs/nri_banking/NRI-TollFreeNos.htm