For many borrowers, an HDFC Business Loan is the only way to get a loan of this size. HDFC is one of the largest banking and financial service organizations in India. The company is known for its strict policies, which include only the largest and most secure commercial banks in the country being able to provide lending options to their clients. This lending policy has made HDFC the most preferred choice for both borrowers and lenders alike. As long as you meet the requirements of the lender, there is a good chance that you will be approved for an HDFC Business Loan at 15% of the loan amount.
|HDFC Business Loan Interest Rate|
|Rack Rate Interest Rate starts from||15% onwards|
|Loan Amount is offered||Rs. 40 lakh (Up to Rs. 50 lakh in specific locations)|
|Processing Charges||Up to 2.50% of the loan amount- Minimum of Rs. 2359 Maximum of Rs. 88,500|
|Collateral / Security||Not required for the loan application|
|Repayment Tenure||Starting from 12 months – 48 months|
|Prepayment charges||No pre-payment charge is permitted until repayment of 6 EMIs.|
|Overdue EMI Interest is charged||2% per month on EMI / Principal overdue subject to a minimum amount of Rs. 200/-|
The small- business loan interest rates offered by HDFC depend on your qualifications, type of business, and the lender you choose. Commercial loans from other traditional lenders, like banks or credit unions, may have high APRs, but depending on your financial status, the annual percentage rate (APR) may not be high enough. With an HDFC Business Loan, you may be eligible for higher interest rates or even a discount. In addition, some other banks also offer special financing for new businesses such as ICICI Bank, IDBI Bank, Bank of Baroda, Canara Bank, etc., which may help you get your financing needs taken care of more quickly.
Types of the business loan offered by HDFC Bank
There are several types of financing options available from HDFC. The majority of HDFC Loan products have two types of interest:
- Fixed-rate loans
- Variable-rate loans
These two interest rates are different from one another; however, the main difference between these two interest rates is that with a fixed rate small-business loan, this bank offers low-interest rate for the duration of the loan term. On the other hand, with a variable rate, there are two interest rates, with one fixed and one flexible rate, with the former ranging from 0% to 30%, while the latter is determined by market forces. If the market rises, then your APR will also go up, while if it drops, your APR will fall.
How to apply for HDFC Small-Business Loan?
To apply for small-business loans from HDFC, you may either choose to apply online or visit one of their branches or their outlets. The HDFC online application can be completed in less time, as compared to visiting the bank branch. Moreover, there are many online lenders offering competitive small-business loans from HDFC. You can compare the interest rates offered by different online lenders. With the online application, you can complete the approval in the comfort of your home and it does not take too much time, unlike the traditional method.
- First, you need to visit the official site of HDFC Bank to check and compare loan options offered by the bank.
- Now, fill in and submit the loan application form along with the documents.
- Then, the bank will verify the form and documents for final approval.
- Once, the loan gets approved, the bank shall disburse the loan amount directly to the applicant’s bank account.
Some of the online lenders offer financing options for new start-ups. HDFC offers several plans for new start-ups, with interest rates and repayment terms flexible to meet the needs of the borrowers. These alternative lenders provide finance to borrowers at competitive rates, while providing flexible repayment terms, which can help you to make timely payments.
Factors affecting HDFC Bank Business Loan
There are several factors that determine the annual revenue and the interest rates offered by these lenders. Some of the main points are listed below:
- The annual revenue is calculated as the total income made by the company over a year.
- For the calculation of annual revenue, the gross value of assets, current assets, and liabilities are taken into account and transferred into your bank account.
- Current liabilities include accounts payable, accrued expenses, and payroll.
- Total annual revenue is then computed by adding the value of assets, current assets, and liabilities and the annual revenue percentage obtained after applying the above factors to the data.
Features and benefits of HDFC Business Loan
Here are some essential features and benefits offered to the HDFC Business Loan users:
- The small-business loan interest rate offered by HDFC is quite low compared to other mainstream banks.
- This may create because HDFC has many branches and outlets all across the country and therefore, it is capable of offering competitive rates.
- HDFC also provides flexibility to customers by offering repayment terms of 30 years or more.
- Another advantage of these loans is that they offer competitive rates on both secured and unsecured options.
- HDFC offers a variety of finance products, including home purchase loans, business cash advances, car loans, travel loans, education loans, corporate loans, debt consolidation, purchase loans, and many others.
The interest rates offered by HDFC are generally high but not above the prevailing market rate. This is because HDFC is in the market for long-term contracts with its customers, and hence, it does not want to lose such a deal. If you plan to apply for an HDFC Business Loan, then you will not have to worry about the interest rates since these are generally very low. You can check the eligibility, benefits, loan amount, interest rate, tenure of repayment, and apply for the loan easily while following the process. However, it would be beneficial for you if you could bring your credit scores under control so that you can secure a marginal rate, which will be well within your means and still allow you to repay comfortably.