Why Should You Opt for HDFC Bank Business Loan?

Updated on: 03 Jan 2024 // 3 min read // Business Loans
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Doing any kind of business is very lucrative, but at the same time fraught with risks. Repeatedly small business owners have to face a predicament wherein their finances are in the doldrums and they need money to bring their business back to life. Here is where small businesses may need to Take a Business Loan. A Business Loan will help finance your business and put it back on track.

Here are some of the reasons why you (as a small business owner) may need to take a Business Loan:

  • To increase your working capital: When you need to keep your operations up and running, you will need a lot of resources for these daily operations. Sometimes when you do not have enough assets to cover the costs of these daily operations, you may need to take a Business Loan.
  • To purchase new machinery or equipment: With the constant changes in technology, sometimes you may need to invest in new machinery or equipment that will give your business operation a facelift. This is where a Business Loan can come very handy.
  • To purchase real estate: With the growing demands, your business may require you to purchase new godowns or stores. A Business Loan can help you make hefty purchases like this.
  • In order to manage expansion: A growing business needs expansion and this means a lot of costs will be incurred. Taking a business loan at this point of time can help in managing this expansion.
  • Buying inventory: Another reason you may need to take a Business Loan is when you want to buy some inventory. An expanding business of course requires more resources and sometimes the companies are not ready enough to finance this spurt. A business loan can help make these purchases.

Now that we have established why a Business Loan is needed, let’s try and understand why an HDFC Bank Business Loan is a good option for small business owners.

About HDFC Bank Business Loan

An HDFC Bank Business Loan can help finance your small business and help you during your need. The best part about the loan is that it can be tailor-made to suit your needs. The documentation is really easy and the loan is disbursed in a short while which makes it a favorite with a lot of people.

What is the Eligibility Criteria of an HDFC Bank Business Loan?

In order to be eligible for an HDFC Bank Business Loan, you need to fulfill some minor criteria. These include:

  • Your employability – You should be a self-employed individual or proprietor, or owner of a manufacturing, trading or services company.
  • Your business should have a turnover of at least Rs. 40 Lakhs.
  • You can only get the loan if you have been in the current business for at least 3 years, and have a total of 5 years of business experience.
  • If your business has been making profits for the previous 2 years, you can apply for the loan.
  • Your business’ Minimal Annual Income (ITR) should be Rs. 1.5 Lakhs per annum.
  • When you are applying for the loan, you must be at least 21 years at the time of applying and not older than 65.

What Are the Best Features of HDFC Bank Business Loan?

  • Loan amount: You can get a loan of up to Rs. 40 Lakhs (and sometimes up to Rs. 50 Lakhs in select locations).
  • No hassles: This can be done without the need for any collaterals, guarantors, or security.
  • Transferring the loan: You also have the option to transfer the existing Business Loan to HDFC Bank for lower equated monthly installments (EMIs).
  • Interest rate: The HDFC Bank business loan interest rate start at as low as 15.75% and when you are transferring the existing loan, the processing fee is as low as 0.99%.
  • Quick eligibility check: You can check whether you are eligible for the Business Loan online as quickly as in 60 seconds. On the repayment of your previous loans, you can get the new Business Loan disbursed to your account in a record short time.
  • Tenure: HDFC Bank Business Loans are very easy to repay and you can choose to repay it either in 12 months or 48 months.

Do all these benefits make HDFC Bank Business Loan a good choice? We surely hope so!