A Business Loan is generally used by businesses to meet their working capital requirements. It can be used to finance equipment purchasing, operation expansion. inventory, renovating office space, attend to cash flow issues, and so on. Almost all banks and financial institutions have one or more Business Loan products to cater to customer’s needs.
HDFC Bank Business Loan
HDFC Bank assists businesses to achieve their growth goals and tackle financial difficulties with convenient funding options. With an HDFC Bank Business Loan, you get the advantage of attractive interest rates, flexibility in repayments, and minimal documentation. The loan is unsecured, which means that you don’t need collateral. This makes loan procurement easy for small businesses that may not have a substantial asset at their disposal. Also, with an HDFC Bank Business Loan, you can avail an overdraft facility and pay interest only for the amount you utilise. Known as a dropline overdraft facility, it is available for amounts of Rs 5 lakhs to Rs 15 lakhs and for a period of 12 to 48 months.
Apart from being collateral-free, HDFC Bank Business Loan doesn’t require a guarantor or security. You can even get a Credit Protect plan for a nominal premium. Its benefits include protection of the family in the event of the death of the customer, life coverage of the customer, and tax benefits.
HDFC Bank Business Loan Eligibility
- Individuals, proprietorship firms, partnerships, and private companies. Businesses engaged in manufacturing, trading, or service.
- Applicants between the ages of 21 and 65.
- The applicant must have a business experience of at least 5 years, while the business itself must be at least 3 years old.
- The business must be profitable in the previous two years with a minimum annual income of Rs 1.5 lakhs per annum, and a minimum turnover of Rs 40 lakhs.
HDFC Bank Business Loan Documentation
As an applicant, you need to furnish basic documents like identity proof, address proof, bank statement, Income Tax return, and basic business documents.
Transferring your Business Loan to HDFC Bank
Apart from applying for a fresh HDFC Bank Business Loan, you can also transfer your existing Business Loan to HDFC Bank. By doing so, you can avail a host of Business Loan benefits and features.
By transferring your Business Loan to HDFC Bank, you can enjoy a lower EMI amount, lower interest rate, and flexible loan repayment tenure. The processing fee for loan transfer is as low as 0.99%*.
Let us understand the benefits with a simple illustration:
Let’s assume that you have an existing Business Loan of Rs 10 lakhs, borrowed at a rate of interest of 16%. The loan repayment term was five years and you have paid 12 EMIs so far. If you transfer the loan to HDFC Bank for the remainder of the 48 EMIs at a slightly lower rate of interest you stand to gain a significant amount in total loan value. For instance, if you transfer this loan to HDFC Bank at 15% interest instead of the existing 16%, you can save nearly 15,000 rupees in the remaining 48 months.
How to transfer your Business Loan to HDFC Bank?
The first step you need to take before transferring an existing Business Loan to HDFC Bank, or any bank, is to compare the interest rates. If you are paying a higher rate of interest and HDFC Bank’s interest rate is lower, you will be able to save money on each EMI. You can find out your new EMI by checking it on the HDFC Bank EMI calculator.
Once you decide that you want to transfer your loan to HDFC Bank, you can reach out to us through SMS, webchat, click2talk, and PhoneBanking, apart from visiting an HDFC Bank branch.
*Terms and conditions apply. Business Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.