StartupYo

How to Get Business Loan in HDFC Bank - Features, Benefits, Interest Rates, Eligibility

Capital is necessary if you wish to pursue all your business objectives, which may include new business development, office reorganizations, upgrades, capital purchases, professional training, and so on. It is an essential part of establishing a business however obtaining that funding can be difficult. An adequate amount of capital is needed to finance startup expenses or to expand.

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

Tax Benefit

Upto Rs. 46800

Apply for Business Loan

HDFC Bank Business Loan




Capital is necessary if you wish to pursue all your business objectives, which may include new business development, office reorganizations, upgrades, capital purchases, professional training, and so on. It is an essential part of establishing a business however obtaining that funding can be difficult. An adequate amount of capital is needed to finance startup expenses or to expand. In order to do this, one could depend on their own finances or apply for a business loan.

 

A self-funding strategy may seem best since you do not have to worry about repaying debts or any associated charges. Many people, however, lack those resources. So, for most types of companies, getting a Business Loan from a bank is by far the best option.

 

Over the past few years, these financing options have become readily available to business owners. These days entrepreneurs have a variety of financing options at their disposal. Aside from offering some of the most affordable pre-payment options, it generally comes with a number of benefits, such as no collateral or guarantee requirements.

 

Taking your business to the next level is easier with Business Loans, designed especially for MSEs. A prime example is HDFC’s business loan. On our way through, we will learn about their prerequisites, including eligibility criteria, documentation specifications, rates, and fees associated with it.

 

Features:

 

Here are some features to consider:

Meet Your Financial Need: Obtain a loan of a maximum of Rs. 40 lakhs (over 50 lakhs in some areas) requiring no deposit, credit assurance, or security for almost any business application.

 

Simple Balance Transfer: A simple, convenient way for you to transfer your loan balance for lower EMIs, and other benefits. With the existing loan transfer, you can get interest rates as low as 15.75 %. Processing fees as low as 0.99%

 

Dropline overdraft option – Available from Rs. 5 Lacs to Rs. 15 Lacs without collateral. There is a separate Current Account where the limit is set and it drops every month till the end of the term. In this case, only the utilized amount will be charged interest. Security or guarantees will not be required. The term of service varies from 12 to 48 months. Affordable Interest Rates. For the first six months following the limit setting, no Foreclosures or Part Closures will be accepted.

 

Easy Disbursement & Eligibility Check – Check whether you qualify for a Business Loan online or in person. Disbursement of the loans will depend on the previous repayment history.

 

Term Flexibility: Repayment can be spread out between 12 and 48 months.

 

An easy way to borrow: Use SMS, Web chat, Click2Talk and Phone Banking to get in touch with the bank for assistance.

 

Remain secure: Cover your loan with a low-cost credit protection plan. Its many advantages are listed below:

  • In the event of the death of the customer, the loan amount is repaid, thereby relieving the family of financial stress.

 

  • Peace of mind from life insurance.

 

  • The loan is repayable without tapping into other savings.

 

  • Reap the tax benefits in compliance with applicable guidelines.

 

  • A convenient package that combines insurance and a loan.

 

  • Upon disbursement, taxations including applicable surcharges and fees at the government’s notified rates will be deducted from the borrowed sum.

 

  • The creditor can offer a Credit Protection Plan (Credit Protect) to the customer/nominee in case of death due to natural causes or accidents. This covers the outstanding principal under the loan up to a maximum amount.

 

Eligibility:



People who qualify for a Business Loan include:

  • Entrepreneurs, Self-Employed Personnel, Private Ltd companies and Partnership Companies that offer Industrial Production, Marketing or other services.

 

  • Minimum revenue of Rs. 40 lakhs should be generated by the business

 

  • Experienced individuals with at least three years experience with the company, and overall 5 years of experience in the field.

 

  • The last two years’ revenue generation

 

  • At least Rs. 1.5 lakhs in annual business income is mandatory

 

  • Applicants should be at least 21 years old at application and should not be older than 65 at maturity.

 

  • Visit an HDFC Bank branch or their website to find out whether you qualify for a business loan.

 

Fees and Charges:

 

Here are the interest rates and fees for HDFC Bank Business Loans.

 

FeeRates
Interest rateMin 11.90% & Max  21.35%
Expenses associated with processing loans

Up to 2.50% of the loan amount, capped at the lowest amount of Rs.1000/- and a Maximum of Rs.25, 000/- for income-based clients and Rs. 75,000/- for self-employed customers according to the lending board’s decision.

There are no processing fees for loan amounts up to Rs. 5 Lac applied for by MSEs under URC submission before payment.

Partial or full prepayment

No partial or full prepayment is allowed until 6 EMIs have been repaid

After 12 EMIs, part payment of up to 25% of the principal outstanding can be made. The borrower is entitled to request this at least once each year and twice throughout the loan term.

Fees associated with prepayment

​​From 06-24 months – 4% of the remaining amount of the original loan

From 25-36 months – 3% of the remaining amount of the original loan

>36 months – 2% of the remaining amount of the original loan

There are no prepayment/foreclosure charges on Fixed-rate loans up to Rs. 50 lakh taken by MSEs, and Closures through own resources.

Letter of Closure for LoanZero
Duplicate Letter of ClosureZero
Solvency certificationNA

 

Post-disbursement charges

 

FeeRates
Interest on overdue EMIs2% per month
Duty on stamps and other statutory chargesAccording to the state’s laws
ACH swap feesRs 500/-
Amortization fees and chargesRs 200/-
Charges for loan cancellationsNIL (interest would, however, accrue between the disbursement of the loan and its cancellation, as well as processing fees)
Charges for bounced cheques

As of July 1, 2021,

First return at Rs.450 plus taxes for each returned instance

Second in a month Rs.500 plus taxes for each returned instance

From third onwards Rs.550 plus taxes for each returned instance

(10% concession applies to senior citizens)

Valid until 30th June 2021

₹ 550/- per cheque bounce

Please Note: There will be an additional charge for Government taxes and other levies if any.

 

Documentation:



 

Business Loan applications must be accompanied by the following documents:

  • Company/Firm/Individual PAN Card

 

Documents that can be used to prove your identity include:

  • A copy of an Aadhaar Card
  • An individual’s passport
  • Voter identification card
  • Copy of a valid driving license
  • PAN Card copy

 

The following documents are acceptable as evidence of your address:

  • A copy of Aadhaar Card

 

  • An individual’s passport

 

  • Voter identification card

 

  • Copy of a valid driving license

 

  • An overview of your bank account for the past six months

 

  • Tax return certified or audited by a CA that includes income statement, account for income and losses and balance sheet for two years.

 

  • Evidence of continuation of the business (ITR, trade license, certificate of establishment, sales tax registration)

 

  • Additional Essential Documents [Sole Prop. The Partnership Deed or a Certified Copy, along with a copy of the Memorandum and AoA as well as the Original Resolution of the Board.

 

Wrapping up

 

It is undeniable that today’s small companies have access to a greater range of financial resources than they ever have, but when it comes down to finding the right lender and the right loan, the array of options and loan alternatives can be overwhelming.

 

Taking an uninformed decision can have a long-term detrimental effect on your business and result in potentially detrimental consequences. Hence, one must be very clear about the actual needs and requirements for improving and enhancing their business by obtaining the right loans, as well as having an appreciation of their merits.

 

Through this article, we gained an understanding of the range of features, benefits and procedures associated with the HDFC Business loan program.

 

The following is a compiled selection of some frequently posed concerns about business loans. The guide below is intended to clarify any queries you might have regarding the application process.

 

To know more details on SME loans from HDFC Bank . You can email contact@startupyo.com or call at  +918886666821.




Faq's

As the name implies, a business loan entails a credit obligation that the borrower is expected to repay in accordance with its terms and conditions. The purpose of a Business Loan is to cover a wide range of expenses in order to grow your business. 

With HDFC Bank, you can choose from an array of services.  Take a look at their Business Loans page to find out more. To access the service, you must provide either your name or reference number; birth date or mobile number. Your loan status will be displayed on the screen once you click on Submit

Business Loans come with a number of advantages, and the following are a few of them.

 

  • An overdraft facility where interest is only charged on the amount borrowed.
  • It is easy to transfer loan balances.
  • Amount of interest only payable on the funds that have been used.
  • -Tenure options that is flexible.
  • A loan with no security.
  • Very little documentation.
  • Get an instant quote within 60 seconds to determine whether your business meets the requirements for a loan.
  • Acquire additional funds for an existing business loan.
  • Protection against credit-related losses

Businesses can obtain financing through business loans in the form of upfront payments or a credit line. For this, a set time frame is arranged with regard to repayment. This usually involves interest and fees. Loan types may vary in the repayment schedule. The lender may require the loan repayments to be made daily, weekly or monthly until the loan is repaid in full.

 

Business Loans from HDFC Bank are available for up to Rs. 50 lacs. Simply follow this series of instructions to check your eligibility. You can inquire about your eligibility using their website or by walking into one of their branches. Applications and disbursements are smooth and swift with minimal documentation required. 

You can apply online to HDFC for a Business Loan, after checking your eligibility for the loan. By using their application interface, submissions can be made in a variety of ways:

 

  • Send an SMS
  • Chat services powered by artificial intelligence (EVA)
  • With Click2Talk
  • Through Phone Banking
  • Visit one of their bank branches
  • By using HDFC Bank Net Banking

When you have a Current/Saving Account with HDFC Bank, you get a discount on the Service Fee, expedited processing, and simplified application procedures. Whenever a loan is disbursed, this factor is taken into consideration. As a bonus, the EMI can be withdrawn directly from your HDFC Bank Account through Standing Instructions.

Some financial institutions usually require security in return for business loans. This type of lending is cost-effective given the reduced credit risk offered by collateral security. There are, however, some banks such as HDFC that offer loans without collateral also.

 

In case everything is in order, the bank will disburse your funds within 5 working days after receiving your application form and supporting documents. Whether the loan is approved or not is at the bank’s discretion.

Yes, the loan can be repaid at any time after the first six months have passed and after you have paid the six EMIs plus foreclosure charges. A Demand Draft / Check can be issued at the branch to close out a loan. However, the bank will not accept cash exceeding Rs. 49000/- for full repayment or matured loan payments. Account payee checks, pay orders, and demand drafts should be used for any payment exceeding Rs. 49000/-.

 

Payments for the loan are made in equivalent monthly payments (EMIs). It can be repaid via three methods: 

 

  1. Standing instructions: wherein your account is automatically charged the EMI according to the schedule.
  2. ECS whereby your non-HDFC bank account can be directly debited for the EMI when the payment is due.
  3. Cheques that are postdated and addressed to the bank.