HDFC Business Loan

HDFC Business Loan

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HDFC Business Loan

HDFC Bank is offering business loans for existing businesses at very attractive rates. Business loans are one of the most important means to expand the business or for a timely investment in cutting edge technology. With HDFC Bank, based on the eligibility criteria, business loans can be availed for as low as 15.65 %. The maximum loan amount is Rs. 40 Lakhs (for some locations it is up to Rs. 50 Lakhs). Also, for certain categories of preferred customers, the disbursal could be done as fast as within 48 hours.

The following are the details of the Business Loan offered by HDFC Bank:

Eligibility Criteria for HDFC Bank Business Loan

  • The business should be into Manufacturing, Trading or Services.
  • Only Self-employed individuals, Private Ltd. CompaniesPartnership Firms and Proprietors are allowed.
  • Minimum turnover for the business should be Rs. 40 Lakhs.
  • The Annual Income (ITR) of the Business should be at least Rs. 1.5 Lakhs per annum.
  • The business should have been making a profit for the previous 2 years.
  • The applicant must be Individuals in the current business for at least 3 years and with total 5 years business experience.
  • The applicant’s age must be at least 21 years at the time of applying for the loan and should not be more than 65 years at the time of loan maturity.

Features of HDFC Bank Business Loan

  • No Collateral, Guarantor or Security is required.
  • Applicant is allowed to take a loan up to Rs. 40 lakhs
  • The loan amount can be used for any of the listed purposes – Business Expansion, Working Capital, Home Renovation or even for educational needs of children.
  • Transfer Loan Balance from other Banks to HDFC Bank for very low rates (as low as 15.75% provided certain Terms and Conditions are met) along with a low processing fee of 0.99%
  • Dropline Overdraft facility with no security or Guarantor required
  • Dropline Overdraft Facility up to Rs. 5 Lakhs–Rs. 15 Lakhs
  • Interest needs to be paid only on the amount utilized.
  • The Tenure ranges from 12 to 48 months
  • Attractive Rate of Interest
  • Condition: No foreclosure or partial closure is permitted during the first 6 months of the limit setting.
  • Business Loan Eligibility can be checked in any branch or online within just 1 minute.
  • Loan Disbursal will depend on previous repayment of home loans, credit cards and auto loans.
  • Tenure is very flexible, with the loan repayment duration ranging from 12 months to 48 months.
  • Support for any questions is available via Phone Banking, SMS, Webchat, and Click2Talk
  • The loan will be paid in post-dated cheques. The loan can also be repaid through Electronic Clearance System (ECS) or directly debit from HDFC Bank Account for the EMI amount through standing instructions.

Rates & Fees

HDFC Bank Business Loan Interest Rates & Charges:

Important Notes:

  1. Government Taxes and other levies as applicable.
  2. Approval of Loan will be at the sole discretion of HDFC Bank Ltd.

Fee

Charges

Range for Rack Interest Rate

Minimum Rate: 15.65%

Maximum Rate: 21.20%

Charges for Loan ProcessingUp to 2.50% of the loan amount subject to a Minimum charge of Rs. 2359 and Maximum charge of Rs. 88500
Prepayment of Loan ConditionNo pre-payment permitted until repayment of 6 EMIs
Charges for Prepayment of Loan

Between 7-24 Months: 4% of Principal Outstanding

Between 25-36 Months: 3% of Principal Outstanding

Over 36 Months:  2% of Principal Outstanding

Overdue EMI Interest2% per month on EMI OR Principal overdue subject to a minimum amount of Rs. 200
Stamp Duty and other statutory chargesAs per State specific applicable laws
Charges for Cheque swappingRs. 500
Charges for Amortization ScheduleRs. 200
Charges for cancelling the Loan

· NIL

· Interest will be charged for the interim period between date of loan disbursement and date of loan cancellation.

· Processing fees would be retained

Charges for Cheque BouncingRs. 550 each time a cheque bounces
Legal or incidental chargesAt actual
Loan Closure LetterNIL
Duplicate Loan Closure LetterNIL
Solvency CertificateNot applicable
Modifying Fixed to floating rate of interest: ChargesNot applicable
Modifying Floating to fixed rate of interest: ChargesNot applicable
Charges for Credit assessmentNot applicable
Charges for Non-standard repaymentNot applicable

Documentation

Required Documents to be submitted along with application for Business Loan:

Document Type

Description or Details

PAN CardPAN Card of Company/Firm/Individual
Identity ProofAny ONE of the following:

· PAN Card

· Aadhaar Card

· Driving License

· Voter’s ID Card

· Passport

Address ProofAny ONE of the following:

· Aadhaar Card

· Driving License

· Voter’s ID Card

· Passport

Bank StatementBank Statement for the last 6 months
Income Tax Return

· Latest ITR along with computation of income

· Profit & Loss account and Balance Sheet for the last 2 years

· All documents CA Certified/Audited

Proof of continuationAny ONE of the following:

· ITR

· Trade license

· Sales Tax Certificate

· Establishment

Other Mandatory Documents

· Sole Prop. Declaration or Certified Copy of Partnership Deed

· Certified true copy of Memorandum and Articles of Association (certified by Director) and Original Board resolution

Addendum

The following are the benefits of having a Current/Saving Account with HDFC Bank while applying for Business loans:

  • Preferred Processing Fee
  • Priority processing
  • Simpler documentation
  • Direct debit from HDFC Bank Account for the EMI amount through standing instructions.

For more questions or more information please click on this official HDFC link


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