HDFC Bank Business Loan: Do you want to start a business but don’t have enough funds? There is a saying, “You have to spend money to make money,” and I agree entirely with that.
A business’s growth heavily relies on the investment you are making upfront in advanced equipment, skilled staff, and more.
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Now, if you don’t have enough savings to invest but have a strong plan, you can apply for a business loan. HDFC provides a business loan named HDFC Business Growth Loan, where you can get a loan of up to Rs 50 lakh for business without any collateral, guarantee, or security.
HDFC Bank Business Loan (2023) Plans
In this article, we are going to thoroughly discuss this HDFC Business Growth Loan scheme along with details of how you can apply for the loan.
So, without any further ado, let’s get started –
Benefits of HDFC Business Loan
- One of the best benefits of an HDFC Business Loan is that you can get a loan of up to Rs 50 lakh and that too without any collateral or guarantor.
- HDFC Business Loan plan also allows you to transfer your existing business loans to HDFC Business Loan for lower EMIs. The standard interest rate for an existing loan transfer is 15.75%, with a 0.99% processing fee.
- HDFC Business Loan provides you with a dropline overdraft facility where you can overdraft your current account up to an agreed limit of Rs 5 to 15 lakh. This is a great way of borrowing a loan as you have to pay interest only for the period you have used the money.
- HDFC provides a quick way to check Business Loan eligibility. You can check it online, or you can visit any nearby branch.
- HDFC Bank provides a very flexible tenure for HDFC Business Loans, where you can select the repayment duration anywhere between 12 months to 48 months.
- HDFC Bank also provides Payment Protection Insurance. Just in case you die before paying the total loan amount, this insurance will cover the outstanding amount of the loan.
So, these were some of the benefits of the HDFC Business Growth Loan. Now, let’s talk about the eligibility criteria.
Minimum requirements to get HDFC Business Loan
- The minimum age to be eligible for an HDFC Business loan is 21 years, while the applicant shouldn’t be older than 65 years at the time of loan maturity.
- If you already run a business, your business should have an annual income of at least Rs 1.5 lakh per annum.
- Your business should have an annual turnover of at least Rs 40 lakh.
- Applicants should have a minimum business experience of at least five years with three years of experience in current business.
- Your business should have been making profits for the last two years.
Documents that are required to get an HDFC Business Loan
- Your business/company’s PAN card (If you are an individual, you have you use your own PAN card)
- One document for identity proof (AADHAR Card/ Passport / Voter ID Card/ PAN Card/ Driving License)
- One document for address proof (AADHAR Card/ Passport/ Voter ID Card/ Driving License)
- Bank statement of your firm/company/self for the previous six months
- Latest ITR with a detailed computation of income, balance sheet, profit, and loss account audited by CA for the past two years
- Document for Proof of continuation (ITR/ Establishment/ Trade License/ Sales Tax Certificate)
- Other documents asked by the bank.
Fee and Charges
Loan Processing Fee
Applicants have to pay up to 2.50% of the loan amount as a loan processing fee. The minimum loan processing fee for salaried customers is Rs 1,000, while the maximum is Rs 25,000. For self-employed customers, the maximum loan processing fee can go up to Rs 75,000.
Interest Rate Range
The interest rate for HDFC Business Growth Loan ranges between 11.90% to 21.35%per annum.
Pre-payment – Partially/Full
The option of pre-payment is only available after the minimum repayment of six EMIs. After paying 12 EMIs, you will be able to pay up to 25% of the principal amount. Plus, this is only available once in a financial year and twice during the entire loan tenure.
If you use this option between 7 to 24 months, you have to pay an additional 4% charge of the principal outstanding. This charge goes down to 3% if you repay between 25 to 36 months, and it goes down further to 2% when you pay after 36 months.
How to apply for Business Loan in HDFC Bank
To apply for a business loan in HDFC bank, you have to follow these simple steps –
- First of all, go to this link.
- Enter all of the information asked, such as your name, mobile number, email, location, and more.
- Accept the self-authorization agreement option.
- Enter the captcha code.
- Click on the Submit button to submit your application.
The business loan representative from HDFC bank will call you within seven working days. Alternatively, you can go to the nearby HDFC Bank branch with all the documents mentioned in this article.