HDFC Bank Business Loan
HDFC Bank provides a range of secured and unsecured loans to cater to the needs of entrepreneurs, business owners, individuals, and non-individuals. These loans are offered in the form of various financial products tailored to the specific requirements of the borrowers.
The loans can be utilized for various purposes such as achieving business goals, expanding operations, renovating offices, modernizing infrastructure, purchasing equipment, and enhancing skill development. HDFC Bank also offers specialized loans designed exclusively for MSMEs, ensuring quick disbursal of funds for their short-term and long-term business requirements.
Table of Contents
Types of business loans offered by HDFC bank
1. Business loans to manufacturers
| Particulars | Facility provided |
|---|---|
| Collateral free loans | Get up to 40 lakhs of business loan without collateral or security. |
| Flexible tenure, and satisfactory repayment option | The amount can be repaid in easy instalments with a tenure ranging from 12 to 48 months. |
| Overdraft facility on manufacturing business loans | Comes with an unsecured dropline facility up to Rs 5 lakh to Rs 15 lakh. Interest is paid on the amount utilised. |
| Easy loan disbursal | Loan eligibility can be checked online within a minute. Loan repayment history, credit score, and relation with the bank to be analysed. |
2. Business loan for Traders
| Particulars | Facility provided |
|---|---|
| Easy applicable and flexible tenure | A loan can be processed easily online or by visiting the nearest branch. Amount repayment tenure ranges from 12-48 months. |
| Collateral-free loans | Urgent business loans are provided to traders with no security. |
| Easy balance transfer option | Best offers, competitive rates, and satisfactory EMI options on existing business loans for traders. |
| Dropline overdraft facility for extra funds | An unsecured dropline facility. A limit is set in a separate current account. Pay interest on the amount utilised. |
| Loan amount | Avail funds worth up to Rs 40 lakhs and Rs 50 lakhs in selected locations with an HDFC bank MSME trading loan. |
3. Business loans for self-employed
| Particulars | Facility provided |
|---|---|
| Collateral free loan | Get an easy loan up to INR 50 lakhs (75 lakhs in some selected locations) without any security, collateral, and guarantor. |
| Quick approval & disbursal | Easy eligibility can be checked either online or by visiting the nearest branch. It can also be checked using banking apps or via SMS. |
| Easy application with little or no documentation | No paperwork or standing in a long queue is required; very few documents are needed that can be availed online. |
| Competitive interest rate | Reasonable interest rates vary on factors like credit, repayment history, and sometimes tenure and purpose for which the loan is taken. |
| Flexibility in repayment | A loan taken can be repaid easily between 12-84 months tenure. |
4. Business loans to Chartered accountants
| Particulars | Facility provided |
|---|---|
| Overdraft facility | CAs can avail the benefit of a dropline overdraft facility. Limit is set on a separate current account. Interest is paid on the amount used. |
| Amount | Sanction loan up to Rs 40 lakhs (50 lakhs to selected locations). |
| No hidden charges | Fixed processing fee. Pre-decided interest rate and no hidden charges. |
| Flexible repayment tenure | Easily repaid within the tenure of 12-48 months. |
| Balance transfer loan | Transfer the balance amount of the existing loan and avail of attractive loan offers and lower EMI options. |
5. Business loan for Doctors
| Particulars | Facility provided |
|---|---|
| Loan amount | Financial help of INR 75 lakhs (in select locations). The amount is based on credit history and repayment of any previous loan. |
| Easy EMIs | Loans are availed to doctors on easy and appropriate monthly EMIs. |
| Repayment tenure | Comes with easy repayment with 12-72 months. |
| Easy processing and approval | Simple and minimal documentation is provided. Quick process for the disbursal of the loan amount. |
| Balance transfer | EMIs can be reduced by transferring the balance to HDFC Bank. A low-interest rate of 10.75% is charged along with a processing fee of Rs 7,999/- plus GST. |
| Insurance | A credit protection plan is assured at a nominal premium. The insurance policy will cover the outstanding loan amount. |
| Convenience | HDFC bank assists doctors and responds via SMS, Webchat, Netbanking, or can visit your nearest branch. |
| Eligibility | One should be a practising or consulting doctor. Four years of post-work experience; physiotherapists need 5-year experience. Must be at least 25 years of age and below 65 when the loan matures. The minimum annual income of INR 1 lakh per annum and a profit-making enterprise for the previous two years. |
| Documentation | Qualification proof – Education degree, MCI registration, Identity proof, Address proof, Bank statement for the last six months, Latest ITR along with the balance sheet, income computation, and P&L account for the last two years, audited by CA, Other documents declaring proof of continuation like trade license, sales tax certificate, Copy of MOA/AOA, and partnership deed. |
6. HDFC bank business loan for professionals (Unsecured)
This loan is offered to working professionals to finance their working capital needs, expanding their practice; very less or no documentation is required. Quick disbursal along with transfer facility to borrowers of other lenders where they can transfer existing loans to the bank at an interest rate starting from 13.29%. The amount assured is upto Rs 75 lakhs with a tenure ranging from 1-5 years.
Processing fee –
- 2% of loan amount
- Nil processing fee for amount upto INR 5 lakhs for MSE enterprises
Fresh loans come with an interest rate of 11-14%
7. HDFC Bank sustainable livelihood initiative
This initiative aims to provide women livelihood who are engaged in self-help groups (SHGs) and joint liability groups with a minimum of 5 members. HDFC bank gives access to credit for handicrafts, livelihoods, livestock, tailoring, jewellery designing etc.
- The interest rate is 11.5-19% for SHGs, repayment tenure of upto 3 years and 22-25% for JLG, with a repayment tenure of 18 months.
- The loan amount varies from 15 thousand to 1 lakh per member.
- Repaid through monthly EMIs.
Charges
- Processing fee – NIL
- Closure charges – NIL
- Pre-closure charges – NIL
8. HDFC bank working capital loan for small businesses (Secured)
Loan to achieve the working capital requirement for sole proprietors, LLP and partnership companies. Any business can avail of funding involved in manufacturing, retail, service, and trading.
Collateral-free loans are available to INR 1 crore under CGTMSE for retail traders. Both fund and non-fund-based facilities are available
- Cash credit,
- Bill discounting,
- Term loan,
- Overdraft
- Letter of credit
- Bank guarantee,
- Export packaging credit (EPC)
- Pre-shipment finance (PSF),
- Credit guarantee fund for Micro & small enterprise
Annual turnover ranging from INR 60 lakhs to INR 7.5 crore.
Processing fee upto 1% + tax of the facility amount or INR 7500 whichever is higher.
9. Loan against property – Mortgage loans on property
HDFC bank avails upto 65% of the value of your property, bank loans are being offered against property at an low rate of interest.
- Longer repayment tenure
- Attractive and exclusive rate of interest
- Both residential and commercial properties are accepted as collateral
- No hidden charges
- Prominent debt-consolidation tool
Eligibility
For Self-employed individuals and Salaried person:
| Particulars | Details |
|---|---|
| Loan processing fee | Maximum 1% of loan amount (minimum PF of INR 7500 /-). |
| Documents required | Self employed professionals / Individuals CA certified financial statements Residence proof – Telephone bill, Electricity bill, Ration card, Voter ID card Identity proof – Aadhar card, PAN card Latest statement of bank showing income/salary credited for last 6 months. Certified copy of property documents pledged against loan. Salaried Individuals |
10. HDFC bank working capital loan for businesses with a turnover of more than 7.5 crores.
Business loans are offered to sole proprietors, HUFs, LLP and partnership companies involved in manufacturing, retail, service, and trading to meet the working capital
Collateral-free loans are available to INR 1 crore under CGTMSE for retail traders. Both fund and non-fund-based facilities are available
- Cash credit
- Bill discounting,
- Term loan,
- Overdraft
- Letter of credit
- Bank guarantee,
- Export packaging credit (EPC)
- Pre-shipment finance (PSF),
- Credit guarantee fund for Micro & small enterprise
- DRUL (Bill discounting under a letter of credit)
Annual turnover ranges from above INR 7.5 crore to INR 200 crore.
11. HDFC bank working capital loan for contractors
HDFC bank gives working capital loans through fund-based and non-fund-based instruments. Commercial and construction equipment is kept as security.
12. HDFC bank retail Agri loan for farmers (Secured) – Kisan card and Kisan gold card
This loan enables farmers to take care of farm requirements (repair, maintenance, consumption, crop production etc.). Purchase of farm machinery, irrigation equipment, construction of storage structure etc. Term loans, overdrafts and cash credit under this facility.
The loan amount is based on cultivation land, the scale of finance and cropping pattern with a tenure not exceeding 7 years.
Processing fee – Regular Kisan Gold card – 2%
Saral KGC – INR 2500
13. HDFC bank loan for Healthcare finance
This loan is suited for those in the healthcare business looking for infrastructure loans, working capital finance/ assets, equipment financing, merchant establishment etc.
Financing options like equipment financing, project finance, working capital needs, buyers’ credit, bank guarantees, letters of credit etc.
Loan tenure is upto 1-7 years
14. HDFC bank term loan
| Category | Details |
|---|---|
| Purpose | Helps business in availing funds for cash flow financing, capital expenditure, expansion, and purchase of assets through short-term financing. |
| Tenure | Within 5 years |
15. HDFC bank commercial equipment finance
| Category | Details |
|---|---|
| Purpose | Provides 100% finance for purchasing commercial and construction equipment like loaders, concrete, compactors, earth movers, processing machines, etc. |
| Processing fee |
New loan – 1% of the loan amount Used loan – 1.5% of the loan amount |
16. HDFC bank letter of credit and bank guarantees
| Category | Details |
|---|---|
| Purpose | Enables smooth functioning of financial transactions in India. Overseas |
| Products and services | Letter of credit for purchasing goods & services. Offers bank guarantee in India and foreign currency surety. |
17. HDFC bank dukaan-dar overdraft facility (unsecured)
| Category | Details |
|---|---|
| Purpose | Overdraft facility to small businesses, dukandars, retailers to maintain good payment history to reduce the risk of cheque bounce. Interest is paid on the amount utilised. |
| Amount | Upto 10 lakhs |
18. HDFC bank dealer finance
| Category | Details |
|---|---|
| Purpose | Offers funding options like a letter of credit, term loan, cash credit, and Material funding for commercial vehicles. |
| Products | Savings account, current account, salary account, retail asset loan, demat account, credit cards, private banking etc |
19. HDFC bank export services
| Category | Details |
|---|---|
| Facility | Export advances and export bill collections to businesses willing to send their goods and services overseas. Payment service is available in 18 currencies to its borrowers, along with assistance from the trade finance desk. |
20. HDFC bank import services for SMEs
| Category | Details |
|---|---|
| Purpose | It enhances purchasing of goods and services from overseas |
| Services offered |
Import advances Import direct payments Import credit Buyer’s credit Provide assistance to importers from its trade finance desks |
21. HDFC bank MSME vehicle loan
| Category | Details |
|---|---|
| Purpose |
100% funding to people in their new and pre-owned cars for taking care of business transport/travelling needs Zero documentation |
| Amount and tenure | Up to 100% of asset cost with tenure up to 40 months |
22. HDFC bank MSME bike loan
| Category | Details |
|---|---|
| Purpose |
MSME business owners who are willing to purchase a bike for business needs Instant 2-wheeler loan within 10 seconds to existing customers |
| Tenure | Ranging from 1-4 years |
23. HDFC bank tractor loan for SME
| Category | Details |
|---|---|
| Purpose | Short term and long term loans are provided to farmers for purchasing tractor to improve farm output and avail better returns |
| Facility | Quick disbursal and flexible repayment options |
24. HDFC bank commercial vehicle loan
| Detail | Description |
|---|---|
| Purpose |
Purchasing of new or used commercial vehicles 90% financing of cost Top up loan on existing commercial vehicles loans for its borrowers Vehicle financed ranging from 1.5 tonnes to 49-tonne gross vehicle weight |
| Vehicles included | Buses, Trucks, Tankers, Tippers, Transit mixers, Tempos |
| Loan tenure | Ranging from 1-6 years |
| Processing fee | 50% off on processing fee |
25. Pradhan mantri mudra yojana (PMMY)
In this yojana, the loan is divided into three categories defining the loan amount asked. The range of amount starts from Rs 50,000 and goes till Rs 10,00,000.
| Mudra loan category | Amount | Rate of Interest |
|---|---|---|
| Shishu | Upto Rs 50,000 | 1% to 12% per annum |
| Kishor | Rs 50,000 upto Rs 5 lakhs | 8% to 11.15% per annum |
| Tarun | Rs 5 lakhs upto Rs 10 lakhs | 11.15% to 20% per annum |
Mudra loans are aimed at uplifting business units like loans for commercial vehicles and loans to shopkeepers, traders and vendors. Check out Mudra loan category
26. Stand up India scheme
Stand up India is a government-inaugurated scheme that aims to empower and uplift the oppressed section of society. This scheme ensures the economic and social welfare of the backward class, like financing SC/ST and women entrepreneurs.
This scheme facilitates bank loans between INR 10 lakhs to INR 1 crore for at least one Schedule caste or one schedule tribe borrower and atleast one woman entrepreneur per bank branch.
HDFC bank Fees & Charges
HDFC bank business loans are available on the given fees, interest rates and charges. Senior citizens can avail of the discount of 10% on all service charges.
| Name of the fee charged | Charges |
|---|---|
| Interest rate | Minimum 10% to maximum 22.50% |
| Processing charges | Upto 2% of loan amount Nil processing fee for MSME loans upto INR 5 lakhs |
| Premature closing charges | Premature closing charges post cooling period off/look up period. Upto 24 EMI repayment- 4% of principal outstanding Post 24 EMI upto 36 EMI repayment – 3% of principal outstanding More than 36 months – 2% of principal outstanding |
| Pre-payment charges | Post 1 EMI and upto 24 months EMI-4% of principal outstanding 25-36 months – 3% of principal outstanding More than 36 months – 2% of principal outstanding NIL foreclosure/prepayment charges for fixed-rate facility upto INR 50 lakhs availed by micro and small enterprises |
| Loan closure letter | NIL |
| Duplicate loan closure | NIL |
| Solvency certificate | Not applicable |
| Overdue EMI interest | 2% per month |
| Stamp duty and other charges | As per applicable state laws |
| Repayment mode charges | INR 500/- |
| Amortization schedule charges/ Repayment schedule charges EMI/Payment return charges |
Rs 50/- per instance Rs 450/- |
| Legal incidental charges | At actual |
| Loan cancellation and rebooking charges | NIL for cancellation of loan INR 1000/- for rebooking of loan |
| Charges for changing from fixed to floating rate of interest | Not applicable |
| Charges for changing from floating to fixed rate of interest | Not applicable |
Eligibility Required
Following people are eligible to avail business loans
- Self employed individuals, private companies, partnership firms,LLPs involved in manufacturing, trading and service
- Minimum turnover of INR 40 lakhs
- Minimum experience of 3 years in current business and 5 years total experience
- Firm has made profit in last 2 years
- Minimim annual income (ITR) of INR 1.5 lakhs per month
- Applicant is of 21 years of age and should not be older than 65 years at the time of loan maturity
HDFC Bank Business Loan EMI Calculator
Frequently Asked Questions
What is the percentage of business loan in HDFC bank?
HDFC bank offers business loan up to 50 lakhs to meet business needs with an interest rate of 11.90-21.35% per annum.
What is the Minimum CIBIL score required for HDFC bank loan ?
If you are a sole proprietor, self-employed or entrepreneur score should be at least 700 or above.
What are the documents required for HDFC business loan?
- Identity proof
- Address proof
- Bank statement of last 6 months
- Last 2 years of ITR with P&L, Computation of income and balance sheet – CA certified
- Proof of continuation (Trade license/ sales tax certificate)
- Other necessary documents (MOA/AOA, partnership deed, board resolution)
What is the maximum business loan amount that HDFC offers?
HDFC bank offers upto Rs 50 lakhs along with an upper limit of Rs 75 lakhs in some selective locations
What is the limit of unsecured loans in HDFC?
Avail easy unsecured loan upto 40 lakhs and 50 lakhs in selected locations.
When will I receive my HDFC bank ATM pin?
You will receive a new ATM pin within 10 days of your submission request
*Disclaimer*
The information contained in this website is according to information available on different means on internet and does not guarantees complete accuracy. The given numbers, schemes and products offered may change.
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