HDFC Business Loans

If you are waiting for the perfect opportunity to run your business in top gear, HDFC Business Loans are here to help you make your dream a reality. You can scale your business to new heights by availing a HDFC Business Loan, which comes with a host of benefits and tailor-made features to meet your diverse business needs. It provides hassle-free documentation, along with doorstep service. 

Types of HDFC SME Loans

Working Capital Finance

HDFC Bank offers a unique range of working capital facilities at your doorstep. It offers convenient and affordable financial solutions for smooth business operations that can be chosen from a range of customized working capital loans. Here is the list of the different kinds of working capital finance loans offered by HDFC:

• Term Loan (TL)

• Cash Credit/Overdraft

• Packing Credit (PC)

• Letter of Credit (LC)

• Bank Guarantee (BG)

• Bill Discounting on residential/commercial/industrial property/shares

WC can be divided into different types based on the loan amount. Below is the list:

Valuedraw: Working Capital Facilities from Rs. 10 lakhs to Rs. 25 lakhs can be offered against a wide range of collaterals that add more value to the business.

Features:

• Credit facility of up to Rs. 25 lakhs/takeover of existing loans at attractive interest rates.

• Stock/Book-Debts/Gold

• Wide range of collateral options

• Dedicated relationship management

• Residential/commercial/industrial property/shares

• Pre-qualified ‘Business Credit Cards’ to meet your expenses

Documents:

• CA certified/audited financial statements

• Bank statements for the last 6 months

• Term loan repayment track record if any

• Collateral documents

• Any other document requested by the bank.

Elitedraw: WC Solutions from Rs. 25 lakhs onwards are offered against a wide range of collaterals.

Features:

• Credit facility starting from Rs 25 lakhs/takeover of existing loans at attractive interest rates.

• Stock/Book-Debts

• Wide range of collateral options

• Residential/commercial/industrial property

• Dedicated relationship management

• Pre-qualified ‘Business Credit Cards’ to meet your expenses

 

Documents:

• Financial statements

• Bank statements for the last 6 months

• Term loan repayment track record if any

• Collateral documents

• Any other document requested by the bank.

Commercial/Construction Equipment Finance

HDFC Bank provides loans for commercial/construction equipment, earth moving, term loans, material handling equipment, bank guarantee or LC, or working capital requirements, as required by your business. You may avail loans from any of the following manufacturers, including Telcon, JCB, L&T Komatsu, Volvo, Escorts, Caterpillar, Case, Schwing Stetter, Ace, Hyundai, Terex, Sany, Liugong, Greaves, Putzmeister, Apollo, Atlas Copco, and many more.

Features and Benefits:

• New/used commercial/construction equipment loans

• CC & OD facilities for working capital finance 

• Bank guarantees/LCs

• Bill discounting/LC discounting

• Inventory funding/trade advance/CC/OD for dealers

• Up to 100% financing of construction equipment

• A loan tenure of up to 60 months

• Simpler documentation and quick processing

• Reduced down payments

• Customized EMI structure to suit your business needs

Interest Rates and Other Charges:

Product	Bank IRR			APR
	Min	Max	Avg	Min	Max	Avg
Commercial Equipment Loan	8.93%	15.21%	10.72%	8.95%	15.26%	10.77%

 

Fee	Charges
Prepayment	4% of Principal Outstanding (pre-closures within 1 year from 1st EMI) 2% of Principal Outstanding (pre-closures after 1 year from 1st EMI)
Processing Charges	New: upto 1% of the loan amount Used: upto 1.5% of the loan amount
Stamp Duty & Other Statutory Charges	As per applicable laws of the state
Cheque Bounce Charges	Rs 550/- + taxes
Service Documentation Charges	Up to 1.5% of the loan amount
Check Swap Charges	Rs. 500/-
Repayment Schedule Charges	Rs. 200/-
Rebooking Charges	Rs. 1000/-

Term Loan

HDFC Bank offers term loans to businesses for a tenure of up to 5 years for capital expenditure, expansion, and for fixed assets. It also offers short-term finance options structured to meet your individual needs. The repayments are scheduled to match your cash flow as well.

Features and benefits:

• Customized products to meet your requirements

• Low-cost credit

• Cash-flow financing

• Products offered at all branch locations

Loans for Professionals

HDFC funds your professional needs to expand your business, upgrade equipment, and for much more. There is no security required. You can enjoy customized professional loans with fast approvals. This scheme offers special benefits on professional loans for selected professions, such as doctors.

Features and Benefits:

• Loan amount of up to Rs. 20 lakhs (up to Rs. 50 lakhs in selected locations) is offered without any collateral, guarantor, or security.

• Loans are offered for business expansion and working capital, for home renovation, or for your child's education.

• Transfer your existing loan for lower EMIs to HDFC, and enjoy the following benefits:

  • Low-interest rate, of 12.99%, on the existing loan transfer

  • Processing fee of 0.99%

• Quick Eligibility Check & Disbursal

• Loan tenure - 12 months to 60 months.

Interest Rates and Other Fees:

Product	Bank IRR			APR
	Min	Max	Avg	Min	Max	Avg
Loans for Professionals	10.85%	16.26%	13.23%	10.91%	20.54%	13.49%

 

Fee	Charges
Rack Interest Rate Range	12.50% - 15.65%
Processing Charges	Up to 2.50% of the loan amount (minimum - Rs. 2359/- & Maximum - Rs. 88500/-)
Prepayment Charges	No prepayment permitted until repayment of 6 EMIs 07-24 Months - 4% of Principal Outstanding 25-36 Months - 3% of Principal Outstanding >36 Months - 2% of Principal Outstanding
Charges for Late Payment of EMI	2% per month on EMI (minimum amount - Rs. 200/-)
Stamp Duty & Other Statutory Charges	As per applicable laws of the state
Cheque Swapping Charges	Rs 500/-
Amortization Schedule Charges	Rs 200/-
Cheque Bounce Charges	Rs.550/- per cheque bounce

Healthcare/Medical Equipment Finance

Here is the list of the types of medical equipment finance offered by HDFC Bank:

Asset/Medical Equipment Finance

HDFC provides loans to purchase standard medical equipment including Colour Dopplers, CT Scanners, MRI Machines, X-Ray Machines, Sonography Machines, and other medical equipment. Apart from the equipment, the loan can also be offered for:

• Infrastructure

• Balance transfer of existing TL/WC

• Merchant establishment

• Working capital finance

Features and benefits:

• Self-employed individuals/proprietors/private limited companies/partnership firms involved in the business of manufacturing/trading/services.

• Offers customized and structured solutions based on the customer’s requirements. 

• Funds equipment finance, buyers credit, working capital limits, BGs, project finance, letters of credit, FCNR funding, etc. 

• Loan tenure - 12 to 84 months based on the project requirements.

• Offers balance transfers from other financial institutions.

Working Capital for Contractors

HDFC Bank tries to fund contractors who offer products such as:

• Fund-based

  • Cash credit facility

  • Bill/Invoice discounting

  • Working capital demand loan

  • Overdraft facility

• Non-fund-based

  • Letter of Credit (LC)

  • Bank Guarantee (BG)

Features and benefits:

• Attractive interest rates

• Uses commercial/construction equipment as security collateral

• Easy documentation and fast processing that helps at every level

• Benefits of at-par cheque facility

• Multi-location banking

• Convenient facilities, such as internet banking and phone banking facilities

 

Working Capital Finance to Transporters

HDFC offers a wide range of products as Working Capital Finance to transporters:

• Fund-based

  • DRUL

  • Cash credit facility

  • Bill/Invoice discounting

  • Term loan

  • Dropline overdraft

  • Working capital demand loan facility

  • Fixed deposit overdraft (FDOD)

• Non-fund-based

  • Letter of Credit (LC)

  • Bank Guarantee (BG)

Features and benefits:

• Multi-location banking

• Quick processing and easy documentation

• Commercial vehicles and property are also considered as collateral security

• Internet banking and phone banking facilities

• Benefits of at-par cheque facility

Business Loans

HDFC Business Loans offer loans that come with a host of benefits and tailor-made features to meet your diverse business needs. The bank also provides hassle-free documentation along with doorstep service.

Features and Benefits of HDFC Business Loans:

• Offers loans of up to Rs. 40 Lakhs (and up to 50 Lakhs at selected locations) without any security, guarantor, or collateral.

• Provides loans to fulfill your business needs, such as for expansion, as working capital, or for home renovation.

• Helps you transfer your existing business loan to HDFC by offering competitive interest rates.

• Offers overdraft facility by providing loans between Rs. 5 Lakhs - 15 Lakhs.

• Quick eligibility check and disbursal.

• Flexible tenure of 12-48 months to repay your loan.

• Convenient borrowing facility through SMS, Web chat, Click2Talk, and PhoneBanking.

• Offers stay insured, to take care of your loved ones.

• Tax benefits as per applicable laws.

Eligibility for HDFC Business Loans:

• Self-employed individuals/proprietors/private limited companies/partnership firms involved in the business of manufacturing/trading/services.

• The business must have a minimum turnover of Rs. 40 lakhs.

• The individual must possess an experience of:

  • A minimum of 3 years with the current business. 

  • A total of experience of 5 years.

• Business must be making a profit for the last 2 years.

• The business must have a minimum annual income of Rs. 1.5 lakhs/annum.

• The applicant must be between 21-65 years of age.

Interest Rates and Other Fees:

Here is the list of interest rates and other fees that are linked to HDFC Business Loans:

 

Fee	Charges
Interest Rate Range	15.65% - 21.20%
Overdue EMI Interest	2% for the month on EMI/Principal overdue(minimum amount is Rs. 200/-)
Prepayment	No prepayment permitted until repayment of 6 EMIs After 6 EMIs: 07-24 Months - 4% (Principal Outstanding) 25-36 Months - 3% (Principal Outstanding) >36 Months - 2% (Principal Outstanding)
Loan Processing Charges	Up to 2.50% of the loan amount (a minimum of Rs. 2359/- and a maximum of Rs. 88500/-)
Loan Closure Letter	NIL
Duplicate Loan Closure Letter	NIL
Stamp Duty & Other Statutory Charges	As per applicable laws of the state
Charges for Changing from Fixed to Floating/Floating to Fixed Rate of Interest	Not applicable
Cheque Swapping Charges	Rs 500/-
Amortization Schedule Charges	Rs 200/-
Loan Cancellation Charges	NIL
Cheque Bounce Charges	Rs 550/- per cheque bounce
Legal/Incidental Charges	At actual

Commercial Vehicle Finance

HDFC Bank offers commercial vehicle finance at the best interest rates.

Types of commercial vehicles that are included in this loan :

• Buses

  • Intracity

  • Intercity

  • Staff Bus

  • School & College Bus

• Trucks

  • Customized Truck

  • Heavy Truck

  • Medium Truck

  • Light Truck

  • Small Truck

• Tankers

  • Oil Tanker

  • Milk Tanker

  • Water Tanker

  • Gas Tanker

  • Chemical Tanker

  • Petroleum Tanker

• Tippers

• Tempos

• Transit mixers

 

You can choose to purchase your commercial vehicle from Tata Motors, Eicher Motors, MAN, Volvo, AMW, Mahindra Navistar, Ashok Leyland, Mahindra & Mahindra, Swaraj Mazda, Bajaj Tempo, etc.

Types of Loans Offered for Commercial Vehicles:

• New/used/refinance/repurchase finance

• Balance transfer

• Top-up loans

Features and Benefits:

• Finance up to 100% of the asset’s cost

• Loan tenure - Up to 48 months

• Customized EMI structure 

• Simpler documentation and quick processing

Interest Rates and Other Fees:

Product	Bank IRR			APR
	Min	Max	Avg	Min	Max	Avg
Commercial Vehicle Finance	9.01%	23%	11.01%	9.01%	23.28%	11.06%

 

How to Apply for HDFC Business Loans

Applying for an HDFC Business Loan is quite simple. 

Online Method to Apply for HDFC Business Loans

• Visit the HDFC Business Loans- Apply Online page.

• Enter your ‘Personal’ and ‘Business’ details.

• Enter the Captcha and click on ‘Submit.’

• A customer care representative will get in touch with you and guide through the rest of the process.

Documents Required for HDFC Business Loans

Here is the list of the documents that are required to apply for HDFC Business Loans.

• PAN Card of the individual/company/firm

• For identity proof:

  • PAN card

  • Aadhaar card

  • Voter's ID card

  • Passport

  • Driving license

• For address proof:

  • Voter's ID card

  • Aadhaar card

  • Driving license

  • Passport

• Bank statement for the last 6 months.

• Latest ITR along with balance sheet, computation of income, and a CA certified/audited profit & loss account for the last 2 years. 

• Proof of continuation (ITR/establishment/trade license/sales tax certificate)

• Other documents 

  • Sole proprietorship declaration or certified copy of partnership deed

  • Board resolution (Original)

  • A certified true copy of Memorandum and Articles of Association (certified by the director)

EMI Calculator

If you want to check your loan eligibility and the EMI you need to pay for your loan amount.

Interest Rates of Top Banks Offering Business Loans 

 

Bank	Interest Rate	Processing Fee
SBI	11.20% - 16.30%	2% to 3%
Axis Bank	15.50% - 24%	Up to 2%
HDFC	15.65% - 21.20%	Up to 2.5%
ICICI	12.90% - 16.65%	Up to 2%
Citibank	16% - 18.99%	Up to 2%
Yes Bank	16.25% - 19.99%	Up to 2%
PNB	12.65% - 16.65%	Up to 1.8%
IDBI	13%	1%
Kotak Bank	16% - 19.99%	Up to 2%
IndusInd	14%	Up to 2.5%
Andhra Bank	9.15% - 16%	1% to 3%
RBL	20% onwards	Up to 3%
Canara Bank	10.50% - 18%	Up to 1%
Bank of Baroda	14.10%	Up to 1%

 

FAQs

How much loan amount can I avail as an HDFC Business Loans?

You can avail an amount between 50,000 to 40 Lakhs(50 Lakhs in selected locations).

How can I repay my HDFC Business Loan?

You pay the loan using any of the options mentioned below:

• Equal monthly installments (EMIs)

• Electronic Clearing System (ECS )

• Auto-debit of your EMI from your HDFC Bank

What is the security I need to give to avail an HDFC Business Loan?

There is no need to provide any security.

Do I have any benefit if I have a current/savings account in HDFC Bank to avail the Business Loan?

The benefits are as mentioned below:

• Preferred processing fee

• Priority processing

• Simple documentation 

• You can pay through auto-debit of your EMI Amount.

What is the loan tenure for HDFC Business Loans?

The loan tenure is 12-48 months.