In a constantly fluctuating economy, it becomes very difficult to maintain a stable business. One important factor contributing towards it, is a constant financial support. When you can take an unsecured Business Loan, the money is borrowed for a fixed number of years at a fixed interest rate. However, with constantly emerging options Business Loan transfer becomes a very profitable option. Through this you can transfer all your loan amounts (up to 3) to a single bank if you feel that they are offering a better interest rate.
Ways to transfer your Business Loan:
One of the major factors to be taken into consideration when transferring the Business Loan amount is its cost benefit ratio. It is always advised to transfer the loan amount as early as possible because a small loan amount for a short span of time will not be able to give you much relief.
Balance transfer of the Business Loan means that the entire remaining unpaid amount is transferred to the new bank of your choice. The Bank pays the remaining amount to your original Bank, while you pay the EMI’s at the new interest rate to the new Bank.
To understand the different ways to transfer your Business loan, it is important to understand the steps involved.
- Eligibility criteria of the bank: eligibility for a loan is mostly established on the basis of the repayment of any other loan that may have been taken by you. With HDFC Bank you can check your Business Growth Loan eligibility, either online or in any of its branch in as little as just 60 seconds.
Some of the requirements listed by the Bank are as follows:
- Self employed individuals, Proprietors, Partnership firms are all eligible as prospective borrowers. The Business Loan, however, is offered only to businesses that are at least 3–4-year-old and not to start ups.
- Loan is offered to clients who are more than 21 and less than 65 years of age.
- The business should be a profitable one, with a turnover of at least 40 lakhs
- The business should be profitable for at least the last 2 years and have Minimal Annual Income (ITR) of 1.5 lakh per annum.
2) Documentation:
- PAN CARD- for individual/firm or company
- An identity proof like Aadhaar Card, passport, Voter’s id etc
- A copy of a valid address proof like Adhaar Card, Pan Card, Voter’s Id etc.
- A CA Certified balance sheet stating the profit and loss account of the business.
- Bank statement of the previous 6 months., as well as the latest ITR with computation of income.
Stages in Business Loan Transfer and availing a top up of Business Loan:
Application
• Processing
• Documentation
• Sanctioning of the Loan
• Disbursement
Benefits to look for in a Business Loan Transfer:
1) Interest Rates-Several Banks offer lucrative interest rates on the loan amount. HDFC Bank offers an interest rate as low as 15.75% on existing bank loan transfer.
2) Processing Fee: this is an added cost, therefore the lower it is, the better. HDFC Bank, for instance charges a very nominal fee of only 0.99% and also offers several benefits.
3) Application Process: it should be as hassle free as possible. HDFC Bank, for instance does not require a Guarantor/ Security deposit for considering the application for a loan.
If you are looking to apply for a Business Loan, Click here.
Why should you consider a Business Loan? Click here to know more.
*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.