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HDFC Business Loan

Updated on April 12, 2024 , 13410 views

HDFC Business growth loan is one of the best loans available in the country. Business loans are important for both small and growing businesses. It is important that you opt for a business loan from a good Bank. One of the main aspects to take into consideration is the interest rates the bank offers.

The interest rates for the loan vary according to the bank’s perception of your creditworthiness, etc.

HDFC Business Loan

HDFC Business Loan Interest Rate & Other Charges

The interest rates for HDFC business growth loan is one of the major offerings of the bank.

Check the interest rate along with other charges below-

Fees Charges
Rack Interest Rate Range Minimum 11.90% & Maximum 21.35%
Loan Processing Charges Up to 2.50% of the loan amount subject to a minimum of Rs. 2359 and maximum of Rs. 88,500
Prepayment No pre-payment permitted until repayment of 6 EMIs
Pre-payment charges 07-24 months- 4% of principal outstanding, 25-36 months- 3% of principal outstanding, >36 months- 2% of principal outstanding
Loan Closure Letter NIL
Duplicate Loan Closure Letter NIL
Solvency Certificate Not Applicable
Overdue EMI Interest 2% per month on EMI / Principal overdue subject to the minimum amount of Rs. 200
Charges for changing from fixed to a Floating Rate (An interest rate that is allowed to move up and down with the rest of the Market or along with an index.) of interest Not applicable
Charges for changing from floating to fixed-rate (An interest rate that will remain at a predetermined rate for the entire term of the loan.) of interest Not Applicable
Stamp Duty and Other Statutory Charges As per applicable laws of the state
Credit assessment charges Not applicable
Non-standard repayment charges Not applicable
Cheque swapping charges Rs. 500
Amortization Schedule Charges Rs. 200
Loan cancellation charges NIL (However Interest would be charged for the interim period between the date of loan disbursement and date of loan cancellation and processing fees would be retained)
Cheque Bounce Charges Rs. 500 per cheque bounce

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Features of HDFC Business Loan

1. Loan Amount

You will be able to avail loan up to Rs. 40 lakhs under the HDFC Business growth loan scheme.

Note: Loan up to Rs. 50 lakhs is available for select locations.

2. Collateral and Guarantor Free Loan

HDFC bank business loan scheme offers loan Collateral and guarantor free loan. You can get the loan to fulfil your business need right the expansion of your business and working Capital.

3. Overdraft facility

You can avail the overdraft Facility without security. You will need to pay the interest only on the amount you have utilised. The limit is set in a separate current account which will drop monthly till the end of the tenure.

The dropline overdraft facility is up to Rs. 5 lakhs - Rs. 15 lakhs. The tenure will be ranging from 12-48 months. Please note that no foreclosure/partial closure will be allowed during the first 6 months of limit setting.

4. Disbursal

You can check your loan eligibility online or at any HDFC bank branch within 60 seconds. The loans will be disbursed based on the previous repayment of home loans, auto loans and credit cards.

5. Tenure

The loan repayment tenure is flexible. You can repay the loan over a period of 12 to 48 months.

6. Credit Protect

One of the major features of the loan is the credit protect facility available with the loan. It provides life coverage and tax benefits as per applicable laws. It offers one convenient package with loan+ insurance.

The premium for this will be deducted from the loan amount at the disbursal time after levying services Taxes and applicable surcharge/cess at the rates notified by the government.

In case of natural/accident death of a customer, the customer/nominee can avail of the payment protection insurance which insures the principal outstanding on the loan up to the maximum of the loan amount.

Eligibility Criteria for HDFC Business Growth Loan

1. Occupation

Self-employed individuals, proprietors, private limited company, partnership firms involved in the business of Manufacturing, trading or services.

2. Minimum turnover for the business

The turnover for a business entity should be a minimum of Rs. 40 lakhs.

3. Business Experience

Individuals applying for the loan should be having a business for minimum of 3 years with 5-year total business experience.

4. Minimal business ITR

The business should have a minimal Rs. 1.5 lakhs per annum.

5. Age

Applicant should have at least 21 years at the time of applying for the loan. The maximum age should be 65 years.

Documents Required for HDFC Business Loan

Mentioned below are the documents required for Business Growth Loan:

1. Identity Proof

2. Address Proof

Aadhar Card Passport Voter’s ID Card Driving License

3. Income Proof

  • Bank statement of previous 6 months
  • Latest ITR along with computation of Income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
  • Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
  • Other Mandatory Documents

Conclusion

HDFC Business loan is a good option to consider. Read all the scheme related documents carefully before applying for the loan.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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