HDFC Bank Business Loan – Interest Rate & Features – Oct 2021
|Interest Rate||16% onwards|
|Processing Charges||Up to 2.50% of loan amount (Min. Rs. 2,359 – Max. Rs. 88,500)|
|Loan Amount||Max up to Rs. 50 lakh|
|Prepayment Charges||07 months – 24 Months – 4% of Principal Outstanding Amount|
25 months – 36 Months – 3% of Principal Outstanding Amount
More than 36 Months – 2% of Principal Outstanding Amount
|Repayment Period||12 months – 48 months|
|Prepayment Condition||No pre-payment permitted until repayment of 6 EMIs|
*Note: The mentioned interest rates and charges are subject to change and depend on the sole discretion of the HDFC bank and RBI.
HDFC Bank specialises in offering business loans that start at an interest rate of 16% per annum. The bank also offers a dropline overdraft facility to meet business requirements, along with options of loan balance transfer with HDFC bank at an interest rate of 15,75% with the processing fee of only 0.99%.
Eligibility Criteria for HDFC Bank Business Loan
|Eligibility factors||Eligibility criteria|
|Status of Business||Min. 3 Years with 5 years of experience|
|Business in same premises||3 years|
|Ownership of property||Business Premises or Residence must be self/family owned|
Below mentioned are the eligible entities that can avail HDFC bank business loan:
Individuals, MSMEs, Business owners, Entrepreneurs, Self-employed professionals, Sole Proprietorships, Private and Public Ltd. Companies, Partnership Firms, and Limited Liability Partnerships engaged in only Manufacturing, Trading, or Services sectors.
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How to Apply for HDFC Business Loan via Paisabazaar?
To apply for an HDFC business growth loan, follow the below-mentioned steps:
- Check and compare loan options offered by the HDFC bank
- Fill in and submit the loan application form along with documents
- Bank’s representative will verify the form and documents for final approval
- After the loan is approved, the bank shall disburse the loan amount in the applicant’s bank account
How does your Credit Score impact your loan application?
As soon as you submit your loan application, the bank firstly checks your credit score and on behalf of it bank sanctions the loan. Credit score is considered the most important factor in availing any loan or credit card. Low credit score negatively impacts your loan application and results in loan rejection. Therefore, to improve the chances of loan approval, you must maintain a healthy credit score of 750 or above. There are few lenders who shall consider your loan application, even if your credit score is 650 or above. However, the interest rate charged in this case shall be higher.
Comparison of HDFC Business Loan vs Banks/NBFCs – 2021
|SBI||8.30% onwards (SME Loan)|
|Kotak Mahindra Bank||14% onwards|
|Axis Bank||17% onwards|
|Fullerton Finance||17% onwards|
|Bajaj Finserv||17% onwards|
|Yes Bank||17% onwards|
|ICICI Bank||18% onwards|
|Lendingkart Finance||18% onwards|
|IIFL Finance||18% onwards|
|Hero Fincorp||18% onwards|
|Indifi Finance||18% onwards|
|NeoGrowth Finance||18% onwards|
|Tata Capital Finance||17% onwards|
|RBL Bank||19% onwards|
|IDFC First Bank||20% onwards|
|HDB Financial Services Ltd.||22% onwards|
|PNB Business Loan||Based on your Business’s Profile|
|Bank of Baroda||Based on your Business’s Profile|
Note: The above-mentioned interest rates may change and shall depend on the sole discretion of HDFC bank and RBI. Interest rates are updated as on Oct 2021.
With options of taking working capital loans, short term, medium-term, and long term loans, the flexibility offered by HDFC Bank business loan options has encouraged businesses to avail business loans for various expansion purposes like buying land/factory space, purchase of machinery/inventory, increasing the working capital, etc. HDFC Bank also provides startup business loans for its customers at competitive interest rates.
HDFC Bank Business Loan – Fees & Charges
|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|
Note: The above-mentioned fees and charges may change and shall depend on the sole discretion of HDFC bank and RBI.
Dropline Overdraft Facility from HDFC Bank
Dropline Overdraft is a credit facility in which the sanctioned limit is kept in a separate current account that drops month-by-month till the end of the tenure of overdraft.
- Competitive Interest Rates
- No collateral required
- Pay interest only on the utilized amount
- Dropline Limit up to Rs. 15 lakh
- No Guarantor required
- Repayment Tenure from 12 months – 48 months
- No foreclosure is permitted during the first 6 months
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Documents Required for HDFC Loan Application
- Duly filled application form with passport-sized photographs
- KYC Documents of the applicant, including Passport, PAN card, Aadhar Card, Driving License, Voter ID card, Utility Bills (Water/Electricity Bills)
- PAN Card of the applicant, partners, directors
- Bank account statement for last 6 months
- Income Tax returns duly filed with the income tax department for a minimum of 2 financial years
- Business address, vintage and establishment proofs
- Copy of licenses, certificates, permissions, if any
- Any other document required by HDFC bank
Frequently Asked Questions
Q. Is there a part-payment option for the HDFC bank business loan?
Ans. Yes, HDFC bank offers both part-payment and prepayment options both, to its customers availing business loans.
Q. How do women entrepreneurs get a business loan from the HDFC Bank?
Ans. There are not any different criteria for women entrepreneurs to avail loans, as they can simply fill in the loan application form online to apply for a business loan or any other type of loan.
Q. How can I pay my HDFC business loan EMI online?
Ans. You can use ECS, net banking, UPI to pay HDFC bank business loan EMIs online.
Q. What is a Cash Credit account in HDFC bank?
Ans. A Cash credit account in HDFC bank is a type of overdraft facility offered to its customers to meet their working capital requirements. Cash credit is a short-term loan offer on the basis of the credit history of the applicant.
Q. How do I avail overdraft facility from HDFC bank?
Ans. To avail an overdraft facility with HDFC bank, the applicant should be a current or savings account holder with the bank for the last six months. The applicant should have a good relationship with the bank and can apply online or via visiting the nearest bank branch.
Q. How can I get a collateral-free MSME loan from HDFC bank?
Ans. To avail collateral-free MSME loan from HDFC bank, an applicant can apply for unsecured business loans up to Rs. 50 lakh or can apply for loan schemes initiated by Govt. of India, such as Mudra loan under PMMY, CGTMSE, PSB loans in 59 minutes, PMEGP, etc.