HDFC Startup Business Loan (Complete Guide)

Business loans are provided by selected banks, HDFC is one of the very trusted banks to get a startup business loan. HDFC offers various kinds of business loans suitable to your specific needs. For any kind of business, funding is the first and foremost challenge in order to scale up. But acquiring a loan is not as simple as it seems, especially in the case of small-scale businesses. 

HDFC start up business loan services are specially designed to cater for MSMEs, one can get benefits suited to your financial needs. The financial services for HDFC startup business loans are focused on turn-around time reduction to provide both short and long-term business needs. 

HDFC business loan Interest rates and charges

Processing charge – Maximum of 2% of the total loan amount, zero processing charges if the loan falls under Rs. 5 lac through micro and small enterprise should be mentioned prior to sanction

Interest rates – Depending on the loan amount, they range from 10% to 22.5% 

HDFC Business Loan documents

• Identity documents such as Passport, Aadhar card, Pan card 
• Proof of address any one Passport, Aadhar card, driving license or voter ID card
• PAN card details of the firm owner or the company
• Bank statement of the past 6 months of company account
• Recent ITR returns filed along with the last 2 years of balance sheet showcasing profit loss statement, income computation authorized by a verified chartered accountant 
• Proof of Address of business 
• Other required proof of business such as a Trade license or establishment certificate

HDFC startup Loan eligibility

To qualify for HDFC business loans, you must meet the following criteria:

• Proprietors, Partnership firms, Private limited companies and self-employed persons with a business focus on manufacturing, services and trading are eligible.
• Businesses that have a minimum turnover amount of Rs. 40 lacs.
• Applicant business owners that are running their current business for three years and have a total business experience of 5 years.
• Businesses should be making a profit for the last two years since the time of application. 
• Minimum business Annual Income or ITR should be at least Rs. 1.5 lacs per annum.
• The individual must be a minimum of 21 years old at the time of application for the loan and should not be older than 65 years old. 

HDFC business loan specifications

To help its clients with their urgent business needs, HDFC Bank provides collateral-free business loans with loan amounts as high as Rs. 50 lakh (Rs. 75 lakh – short-time offer). The HDFC Bank offers business loans with interest rates ranging from 10.00% to 22.50% p.a. and repayment terms of 1 to 4 years. Additionally, HDFC Bank enables customers who already have business loans with other lenders to refinance them at cheaper interest rates.

Fast Eligibility Verification & Payment

It will only take you one minute to verify if you are qualified for a business loan, whether you do it online or at any branch. The borrower’s previous repayment history on loans for things like credit cards, automobiles, and homes will play a role in whether or not they are approved for a loan.

Security Insurance 

By making a little premium* payment and using our Credit Protect Plan to insure your loan, you may take better care of your dear ones:

• Benefits: Pays up the loan balance in the event of the client’s death, protecting the family and giving them peace of mind
• No additional savings are required to pay back the loan.
• Tax Benefits according to the Laws
• Insurance and a loan combined into one easy bundle
• At the time of disbursement, the premium for this contract will be subtracted from the amount borrowed after service taxes and any applicable surcharges or fees have been assessed at the rates announced by the government.
• The customer or designated beneficiary may purchase Payment Protection Insurance (Credit Protect), which covers the principal balance of the loan up to the full loan amount in the event of the customer’s natural or accidental death.

Facility for Dropline Overdraft

• The applicant’s or account holder’s separate current account contains a loan amount cap that declines monthly until the term is up.
• Only the portion of the loan that has been used generates interest.
• Limit on Overdraft: Rs. 5 lahks upto Rs. 15 lakh
• No collateral or security is needed, and no guarantors are needed.
• from one to four years’ tenure
• No foreclosure or partial Closure is permitted for the first six months of the loan term.

FAQs

How much can I get for a startup business loan?

Any new firm can qualify for a business loan ranging from Rs. 50,000 to Rs. 500,000, and the eligibility requirements for these loans are based on the business profile and eligibility requirements of the new company.

HDFC Business loan EMI Calculator

One can access and calculate their EMI as per their loan details and requirements on the HDFC bank website here.

Can I get a business loan without revenue?

Although you may have all the required documents, credit eligibility and a great business idea, there are chances that a lender can decline giving you a loan because of lower or no revenue. As for most of the loans they would need guarantee on returns.

How long does it take to get a startup business loan?

However, one can anticipate the time period to obtain a business loan to be anything from one day to one month, depending on the specifics of their particular situation.

Conclusion

To avail startup capital for business, HDFC is a good platform to look forward to. HDFC collateral-free schemes and loans offered under government schemes for MSMEs can be very helpful to beginners to further establish and expand their business with business loans. All required information for such business loans is available on the HDFC website along with the application process, one could simply do it online or visit the nearest branch or talk to customer care numbers in order to get specific details as per their needs. 

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