In: Business Loan, HDFC Bank

Introduction

HDFC Bank offers business loans with interest rates starting from 11.90% p.a., providing flexible loan tenures of up to 48 months and loan amounts of up to Rs. 50 lakh. These loans are designed to meet a variety of business needs, including working capital, business expansion, equipment purchases, or managing day-to-day operations.

HDFC Bank business loans come with benefits such as minimal documentation, quick approval, and no collateral requirement, making them ideal for small and medium-sized enterprises (SMEs). The bank also offers flexible repayment options and tailored solutions to ensure smooth cash flow management and support business growth.

Highlights of HDFC Bank Business Loan

FeatureDetails
Interest RateStarting from 11.5% p.a.
Loan Amount (LTV Ratio)Up to 85% of property value or revenue
Loan TenureUp to 7 years
Processing ChargesUp to 2% of the loan amount
Minimum Monthly Income₹60,000, varies by location and loan type

Types of Business Loans

Loan TypePurposeLTV RatioTenureSpecial FeaturesInterest RateEligibility CriteriaCollateral Required
Business Term LoanBusiness expansion, capital needsUp to 85%Up to 7 yearsFlexible repayment options11.5% – 13.75% p.a.Min. 3 years in operationYes
Working Capital LoanShort-term operational expensesUp to 75%12 months, renewableOverdraft, quick renewals11.75% – 14.5% p.a.Good credit scoreNo
Equipment FinancingPurchase of machinery, equipmentUp to 80%3 – 7 yearsCustomizable loan structure11.9% – 13.9% p.a.Proven business track recordYes

Eligibility Criteria

CriteriaDetails
Minimum Business Operation Period3 years
Positive Cash ProfitsLast 2 years
Required DocumentationIT returns, balance sheets, bank statements
Other CriteriaGood credit score, minimum turnover of ₹60 lakhs

Loan Features & Benefits

  • Range of loan amounts: From ₹10 lakhs up to ₹10 crores.
  • Collateral requirements: Depending on the loan type, collateral may or may not be required.
  • Minimal documentation: Streamlined process with minimal paperwork.
  • Quick approval: Loans are approved and disbursed within a few working days.
  • Flexible repayment options: Choose a repayment plan that aligns with your business cash flow.

Fees and Charges

RequirementSalariedSelf-Employed
Processing Fee₹10,000 to ₹25,000₹15,000 to ₹30,000
Prepayment ChargesUp to 3% of principalUp to 3% of principal
Late Payment Fee₹500 to ₹1,000 per instance₹750 to ₹1,250 per instance
Documentation ChargesAs applicableAs applicable
Bounce Charges₹750 per instance₹1,000 per instance

Required Documents

  • Identity Proof: PAN Card, Aadhaar.
  • Address Proof: Passport, Utility Bill.
  • Business Continuity Proof: GST Registration, Business License.
  • Financial Documents: IT returns, bank statements for the last 2 years, audited balance sheets.

EMI Calculator

Use HDFC Bank’s online EMI calculator to estimate your monthly payments. Simply enter the loan amount, interest rate, and tenure to calculate your EMI instantly.

Application Process

  • Steps to Apply: You can apply online through the HDFC Bank website or visit a branch for offline applications.
  • Expected Timeline: Loan approvals typically take 4-7 working days after submitting all required documents.
  • Customer Support: Dedicated support teams are available to assist you throughout the application process and provide updates on your loan status.

Comparison with Other Banks/NBFCs

BankInterest RateProcessing FeesLoan TenurePrepayment ChargesCollateral RequirementApproval TimeSpecial Features
SBI Bank8.5% p.a. onwards0.35% of the loan amountUp to 15 years3% of the principalRequired for large amounts7-10 daysEasy overdraft facility
HDFC Bank8.7% p.a. onwardsUp to 2% of the loan amountUp to 10 years4% of the principalUsually required5-7 daysPre-approved offers for customers
ICICI Bank8.85% p.a. onwards0.5% – 1% of the loan amountUp to 12 years3% of the principalRequired5-7 daysCustomizable loan structure
Kotak Mahindra Bank8.70% p.a. onwardsUp to 1% of the loan amountUp to 25 yearsUp to 5% of the principalRequired7-10 daysDoorstep service
Punjab National Bank8.40% – 12.10% p.a.0.5% – 1% of the loan amountUp to 15 years2% of the principalRequired8-10 daysQuick processing time
Bajaj Housing Finance8.50% p.a. onwardsUp to 1.5% of the loan amountUp to 15 years2% of the principalRequired5-7 daysQuick loan approval
Axis Bank8.75%-13.30% p.a.Up to 2% of the loan amountUp to 10 years3% of the principalRequired5-7 daysFlexible repayment options
Bank of India8.4% p.a onwards1% of the loan amountUp to 15 years3% of the principalRequired7-10 daysEasy documentation
TATA Capital8.75% p.a. onwardsUp to 1.5% of the loan amountUp to 12 years4% of the principalUsually not required5-7 daysNo collateral required

Other HDFC Bank Loans

HDFC Bank Personal Loan
HDFC Bank Home Loan
HDFC Bank Mortgage Loan