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HDFC Business Loan

Business Loan

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    HDFC Bank is one of the top-notch private banking institutions that always stands tall in providing financial help. Either it is the purchase of machinery or acquiring land. Get a collateral free HDFC Bank Business Loan up to 75 Lacs at a rate of 17% per annum onwards. The doctors and self-employed professionals can get a repayment period of 5 years for clearing the loan. This loan can be used for business expansion, managing working capital, purchasing buildings and other such activities.

    Eligibility for Taking a Business Loan from HDFC Bank

    Non-Professionals – Sole Proprietorship, Partnership, Private Limited Company

    Minimum Turnover – The minimum turnover of the business must be 1 Crore on the last two assessment years. It must also be in a positive graph in the preceding two years.

    Minimum Net Profit – The business must generate a profit of at least 2.5 Lacs in the preceding two assessment years. The graph of the profit must be positive in two years comparison.

    Business Vintage Period – The business must be at least 3 years old and the businessman should have the documents that will prove that vintage period.

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    Age of the Applicant – The minimum age of the applicant for applying loans must be 21 years and at the time of maturity of loans the age of the borrower must be not exceed 65 years.

    Ownership Proof – The applicant or the blood relative of the owner must be least the office or residence property. Blood relative includes parents, grandparents and spouse.

    For Professionals – Doctors, Chartered Accountant , Company Secretary, Cost Accountant, Architect

    Minimum Receipts – The professional business must have the minimum gross receipt of 5 Lacs in the last two assessment years with a positive graph.

    Minimum Net Profit – The minimum net profit of the professional business must be at least 2.5 Lacs and it must have increased in the comparison with last to last year’s profit.

    Age of the Professional Business – The professional business must not be less than 3 years. The applicant must have to submit the required document for proving the vintage period.

    Age of the Applicant – The applicant must have a minimum age of 21 years who is applying for a business loan. The maximum age at the time of maturity of the loan must not exceed 65 years.

    Ownership Proof – The residential property or the office premises must be owned by the applicant or his blood relatives. Blood relatives can be parents, grandparents and spouse.

    Eligible Parties for Taking a Business Loan

    Professional Business – Doctors, Chartered Accountant, Company Secretary, Cost Accountant, and Architecture.

    Doctors – BAMS (Ayurvedic), BHMS (Homeopathic), BDS (Dentist), MD, MBBS and MS.

    Non-Professional Business – Sole Proprietorship, Partnership, Private Limited Company.

    Nature of Business – Manufacture, Service, Trader.

    Facilities Included in HDFC Bank Business Loan

    ParticularsDetails
    Loan Amount₹1 Lac to ₹75 Lacs
    Rate of Interest17% to 21% p.a (Reducing)
    Loan Tenure for Non-Professionals12 Months to 36 Months
    Loan Tenure for Professional12 Months to 60 Months
    Processing Fee1.5% to 2% on the loan Amount

    Fees and Charges

    ParticularsDetails
    Loan Closure ChargesNIL
    Duplicate Loan Closure ChargesNIL
    Overdue EMI Interest2% on the EMI
    Cheque Swapping Charges₹500/-
    Cheque Bounce Charges₹550/-
    Amortisation Schedule Charges₹200

    Pre-Closure Charges

    There are many borrower who generate a handsome profit in the next year after taking the loan. So they want to close the loan before maturity. For doing so you have to pay pre-closure charges to the HDFC Bank. But you cannot close the loan unless and until you pay the first 6 EMIs to the bank.

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    Between 7-24 months – 4% of the outstanding principal amount.

    Between 25-36 months – 3% of the outstanding principal amount.

    In the 36 month – 2% of the outstanding principal amount.

    Availability of Loan

    HDFC Bank grants a business loan to all the cities available across India. If you have an HDFC branch near you then you can apply for the business loan easily. You can also apply for the loan on the official website of HDFC bank as well.

    Balance Transfer of Existing Loans

    If you are having an existing business loan from some other bank, then you can transfer it into the HDFC Bank. HDFC Bank does the balance transfer from any bank. This facility will help you to close multiple business loans.

    Documents Required for the HDFC Bank Business Loan

    Mandatory Documents for all types of Business Loan

    Identity Proof – Voter I.D Card, Passport, Driving License, Aadhaar Card.

    Address Proof – Passport, Driving License, Voter I.D, Telephone Bill, Electricity Bill, Sale Agreement, Bank Statement.

    For Sole Proprietorship Business

    • Individual or Applicant’s Pan Card.
    • Audited ITR of the Last two years.
    • Last 6 months Bank Account Statement.
    • Registration Proof of the Business.

    For Partnership Business

    • Pan Card of all the Partners.
    • Last two year ITR audited by a CA.
    • Last 6 months bank account statement.
    • Partnership Deed of the firm.
    • Partnership Authority Letter of the firm.

    For a Listed Company

    • Pan card of all the Existing Directors.
    • Pan Card of the Company.
    • Certificate of Incorporation.
    • Audited Balance Sheet for the last two years.
    • Memorandum of Association and Article of Association.
    • Shareholding Pattern of the company.
    • Bank statement for the last 6 months.

    For Self-Occupied Professionals

    • Pan Card of the Professionals.
    • Lat two years ITR documents of the Professionals.
    • Professionals Certificate of the Applicant.
    • Degree Certificate of the Applicant.

    Calculation of Business Loan EMI

    You can also get an idea of the EMI on the loan with the help of the HDFC Bank Business Loan EMI Calculator. The following table will tell you how it works.

    Amount of LoanRate of InterestTenureEMI
    ₹5,00,00017% p.a36 Months₹17,826.36
    ₹5,00,00021% p.a36 Months₹18,837.53
    ₹15,00,00017% p.a36 Months₹53,479.09
    ₹15,00,00021% p.a36 Months₹56,512.60

    Reasons for Rejection of Business Loan Application

    Bad Repayment Record – If you are having a bad repayment record then there are chances that your loan application will be rejected. Any bounce of EMI in the past affects your repayment record.

    Negative Credit Score – There are some users who have a negative CIBIL Score of less than 700. This will also not approve your loan application request. You have to maintain a CIBIL Score of more than 700.

    Low Vintage Period – The business must be at least 3 years old. If in case you have a startup business with less than 3 years of the vintage period then HDFC bank will not approve your loan.

    Unhealthy Relationship with Bank – You must always keep a healthy relationship with the bank. If there is any kind of misbehaviour with the bank then HDFC will not approve your loan.

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    Personal Loan Interest Rates December 2019
    Bajaj Finserv10.99% - 16.00%
    Fullerton India14.00% - 33.00%
    HDFC Bank10.75% - 21.45%
    ICICI Bank10.99% - 18.40%
    IndusInd Bank10.99% - 16.00%
    Kotak Bank10.99% - 20.99%
    RBL13.00% - 18.00%
    Standard Chartered Bank11.50% - 18.00%
    Tata Capital10.99% - 18.00%
    Home Loan Interest Rates December 2019
    State Bank of India/SBI8.15% - 8.80%
    HDFC8.25% - 9.30%
    LIC Housing8.35% - 8.95%
    PNB Housing Finance9.25% - 12.00%
    Piramal Capital & Housing Finance9.00% - 9.10%
    Tata Capital9.20% - 9.35%
    ICICI Bank9.20% - 9.65%
    Bank of Baroda8.40% - 9.40%
    Axis Bank8.90% - 9.15%
    Citibank9.00% - 9.85%
    Indiabulls Housing Finance Limited8.80% - 11.05%
    Kotak Bank8.90% - 8.75%
    DHFL9.05% - 9.95%
    Reliance Home Finance8.75% - 14.00%