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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.
Table of Contents
- 1 Eligibility for Taking a Business Loan from HDFC Bank
- 1.1 Non-Professionals – Sole Proprietorship, Partnership, Private Limited Company
- 1.2 For Professionals – Doctors, Chartered Accountant , Company Secretary, Cost Accountant, Architect
- 1.3 Eligible Parties for Taking a Business Loan
- 1.4 Documents Required for the HDFC Bank Business Loan
- 1.5 Reasons for Rejection of Business Loan Application
- 1.6 HDFC Bank Moratorium Process
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.
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
|Loan Amount||₹1 Lac to ₹75 Lacs|
|Rate of Interest||17% to 21% p.a (Reducing)|
|Loan Tenure for Non-Professionals||12 Months to 36 Months|
|Loan Tenure for Professional||12 Months to 60 Months|
|Processing Fee||1.5% to 2% on the loan Amount|
Fees and Charges
|Loan Closure Charges||NIL|
|Duplicate Loan Closure Charges||NIL|
|Overdue EMI Interest||2% on the EMI|
|Cheque Swapping Charges||₹500/-|
|Cheque Bounce Charges||₹550/-|
|Amortisation Schedule Charges||₹200|
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.
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 Loan||Rate of Interest||Tenure||EMI|
|₹5,00,000||17% p.a||36 Months||₹17,826.36|
|₹5,00,000||21% p.a||36 Months||₹18,837.53|
|₹15,00,000||17% p.a||36 Months||₹53,479.09|
|₹15,00,000||21% p.a||36 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.
HDFC Bank Moratorium Process
The process to stop your loan EMIs at HDFC Bank is as follows-
- Visit the HDFC Bank website or use the mobile app
- Click on the link where the option of moratorium period is popping out
- On the application page, mention your registered mobile number, name, email address
- After that enter your date of birth and select the type of loan
- Enter your loan number and mention your EMI amount
- Then make a decision and choose a suitable service
- Click on the EMI deferment option that says I agree to pay the accrued interest on the outstanding balance
- Click on the ‘Submit’ button
- The bank will check the details thoroughly and process your moratorium request
- You’ll be given a reference upon the successful completion of the process.on your registered mobile number and email address
However, if you don’t want to defer EMI, you must click on the second option after the deferment option. This will ensure EMI payments as scheduled with no extra interest charged on it.
- and select the defer option if your answer is yes otherwise your EMI debited as it was doing in the past
HDFC Bank representatives can also get in touch with you via WhatsApp or call regarding the moratorium process.