Hero Fincorp Business Loan
With Hero Fincorp, Micro, Small, and Medium Enterprises (MSMEs) can get secured and unsecured business loans that have interest rates from 16% per annum and repayment periods of up to 60 months. Such loans address the needs of working capital, machinery purchase, repair, remodeling, and business growth. At the same time, there are also some special discounts for small ticket sized loans between ₹3 lakh to ₹40 lakh depending on the age, income, business, and credit history.
Business Loan Interest Rate, Fees & Other Charges
The interest rate, processing fees, and other charges of the Hero Fincorp Business Loan are given below:
| Particulars | Charges |
|---|---|
| Maximum Loan Amount | Up to Rs.40 Lakhs |
| Interest Rate | Starting from 16% p.a. to 30% p.a. |
| Processing Fee | 2% of the loan amount |
| Repayment Tenure | 12 to 60 Months |
| Foreclosure Letter Issuance | Rs. 1000 |
| Delayed EMI Payment Charges | 24% p.a. on the outstanding overdue amount calculated on a daily basis |
| Loan Rescheduling Charges | INR 5000 |
| Repayment Swap Charges | INR 5000 |
| Account Statement/Amortization Schedule | NIL |
Table of Contents
Features & Benefits of Business Loan
- Collateral-Free Loans: No security or collateral required to avail this loan.
- Loan Amount: Ranges from ₹3 lakh up to ₹40 lakh.
- Loan Tenure: Flexible terms from 12 to 60 months (5 years).
- Attractive Interest Rates: Competitive rates starting from 16% per annum. To 30% per annum.
- Easy Documentation: Minimal paperwork and quick processing.
- Purpose: Suitable for various business needs, including expansion, working capital, purchasing machinery, and conducting repairs or renovations.
Hero Fincorp Business Loan EMI Calculator
Eligibility Criteria Required
The eligibility requirements to avail Hero Fincorp Business Loans are:
- Indian citizens between 21 and 65 years at the time of loan application and loan maturity.
- Self-employed Professionals: Architects, Chartered Accountants, Doctors, Company Secretaries.
- Self-employed Non-Professionals: Sole Proprietors, Retailers, Traders, Manufacturers, Service Providers.
- Entities: LLPs, Private Limited Companies, Partnership Firms, Trusts.
- SMEs with at least 5 years of business experience.
- Flexible tenure up to 5 years, repayment not extended after 62 years of age.
- ₹3 lakh to ₹40 lakh, based on factors like age, income, business type, and credit history.
- Steady income required, no predefined minimum monthly income.
Also Read: What is Secured Business Loan?
Documentation Required for Business Loan
The following is a list of the documents required for your business loan application:
KYC Documents:
- Duly filled application form
- PAN Card
Identity Proof: Voter ID Card/Photo ID issued by GOI/Passport/Driving License/Aadhaar Card
Address Proof of the applicant: Aadhaar Card/Voter ID Card/Property Tax Receipt/Driving License/Utility Bill/Registry Copy/Property Tax Receipt/Lease or Rent Agreement
Address proof of the business: Aadhaar Card/Voter ID Card/Utility Bill/Registry Copy
Bank Statements: Last 6 months bank statement
Income Documents
- Latest ITR
- GST returns for the financial year
- Latest audited financials
Proof of Business Continuation
- VAT/Excise/Sales Tax/Service Tax Registration
- Trade License/Copy of partnership deed/Registration Certificate issued by RBI or SEBI/Certificate of Practice
Other Documents
- Signature Proof: Banker’s Verification/Passport/PAN Card
- List of Directors (if applicable)
- Shareholding patterns (if applicable)
Also Read: Unsecured Business Loan
How to apply for a Business Loan in Hero Fincorp?
You can apply for a Hero Fincorp Business Loan, by either visiting their nearest branch or going to the website and applying for the loan online.
Online Application Process
- Online Application: Visit Hero Fincorp Website and instantly apply by clicking the “Apply Now” button for an instant business loan online.
- Enter your required details in the Application form and click on the submit button. An Hero Fincorp representative will contact you shortly.
Offline Application Process
Download the loan application form from the website, fill it out and submit it at your nearest Hero Fincorp branch for further processing.
Also Read: Small Business Loans for Women
What are the Factors Responsible for business Loan
Hero Fincorp provides business loans at an interest rate starting from 16% per annum. Securing a business loan with favorable interest rates and a flexible repayment period is crucial for applicants.
Given the typically substantial loan amounts associated with business loans, various factors come into play in determining the interest rates for Hero Fincorp Business Loans.
These are:
- Credit History
- Business Type
- Loan Amount
- Loan Tenure
- Collateral
- Economic Conditions
- Repayment Capacity
Frequently Asked Questions
Q. For how many months can I borrow a Business Loan?
Hero Fincorp offers convenient repayment options of up to 60 months depending on the profile of the customer.
Q. Is there any security that I need to provide to get a Business Loan?
Hero Fincorp provides business loans as unsecured loans, so you don’t need to offer any security or collateral to qualify for the loan.
Q. What is the Hero Fincorp Business Loan interest rate?
Hero Fincorp offers business loans with interest rates starting from 16% per annum and going up to a maximum of 30%. The exact rate depends on various factors such as your credit profile and business performance.
Q. What are the documents required for Business Loan?
To apply for a business loan with Hero Fincorp, you will need a duly filled application form, PAN card, proof of identity (Voter ID, Passport, Aadhaar, or Driving License), proof of address (Aadhaar, Voter ID, Utility Bill, Property Tax Receipt, or Rent Agreement), and business continuity proof such as VAT or Service Tax Registration.
Additionally, you will need to provide income documents like the latest ITR, audited financials, GST returns for the financial year, and the last 6 months of bank statements. Other necessary documents may include a list of directors, shareholding patterns (if applicable), and signature proof through a Banker’s Verification, Passport, or PAN card.
Q. What is a Business Loan EMI calculator?
A Business Loan EMI calculator is an online tool that helps you estimate your monthly EMI (Equated Monthly Installment) based on the loan amount, interest rate, and repayment tenure. It provides an overview of how much you’ll need to pay each month, aiding in better financial planning.
Q. How much loan can I get for business from the bank?
The amount you can get for a business loan from the bank typically depends on your business needs, creditworthiness, and the bank’s lending criteria. For Hero Fincorp, business loans ranging from Rs 3 lakh to Rs 40 lakh..
Q. Which bank is best for a business loan?
The best bank for a business loan depends on your specific needs and preferences. Factors to consider include interest rates, loan amount, repayment terms, and additional benefits.
Some best Banks for Business Loan are:-
- SBI Bank
- HDFC Bank
- ICICI Bank
- Citibank
- IDFC Bank
Q: Is there a predefined minimum income required to apply for a Hero Fincorp Business Loan?
No, Hero Fincorp does not have a predefined minimum monthly income requirement, but a steady source of income is necessary.
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