How to Apply for Instant HDFC Business Loan up to 50 Lakh?

2024 has been a challenging year so far. Businesses across the globe absorbed halted economic activity and suffered losses. Yet, it’s time to rebound and make some relevant changes to prepare for the future ahead. From small businesses to medium sized operations lack of working capital or appropriate funding for expansion is something that needs a special attention at this time.

Though it is well known that interest rates are lower than ever and government as well as banks are easing the process of lending for common public, yet most small businesses do not know how to approach a commercial bank for affordable loans.

It is interesting to note here that, at the backdrop of COVID-19 Indian banks are better equipped to disburse online loans to customers. Top banks like HDFC are disbursing contactless Business Loans for 50000 to 50 lakhs to new and old customers.

Let’s check out ins and outs of HDFC Business Loan here in this article. Apart from reviewing features and benefit of contactless credit scheme, we will also share how to apply for Online Business Loan.

Who should apply for an HDFC Business Loan?

HDFC Business Loan is meant for business owners:

• Seeking loan for working capital or business growth financing up to 50 lakhs.
• Who do not have collateral or guarantor to back the application. In case you have collateral, you should apply for loan against property and save interest cost further.
• Wishing to transfer balance or refinance existing Business Loan from other bank. Balance Transfer helps to lower EMIs and reduces the rate of interest considerably.

What are the benefits of HDFC Business Growth Loan?

HDFC Business Loan is one of the preferred funding options for various small and medium-sized businesses because of multiple customer-friendly features. You can opt for interest-only overdraft facility besides the loan amount. The existing customers can get preapproved offer. The Business Loan can now be applied online following predefined documentation and eligibility criteria.

Some of the benefits of HDFC Business Loans can be listed as:

• Dropline overdraft facility up to Rs.5 – 15 Lakh
• Choice of flexible tenure, ranging from 1 to 4 years
• Option to check eligibility instantly
• Contactless application process
• Affordable EMI plans
• Interest rates starting at 11.90%
• Processing fees start at as low as 0.99%
• Choice of loan insurance plan- Credit Protect

Who is eligible for HDFC Business Loan?

Borrowers falling in the following group can apply for HDFC Instant Business Loan:

• Self-employed individuals
• Proprietors
• Private Limited Company
• Partnership Firms
• Any business involved in manufacturing, trading or services
• The business with turnover of minimum of Rs. 40 Lakh.
• The primary applicant should be in a current business for a minimum of 3 years, and must have at least 5 years of total business experience.
• The business should be profit-making for at least last 2 years.
• The Minimal Annual Income (ITR) of business should be of Rs. 1.5 Lakh.
• The primary applicant should be minimum of 21 years of age and should not be more than 65 years at the time of loan maturity.

What documents are required for HDFC Business Loan?

• PAN Card – as applicable for company or individual
• Identity proof- Copy of any of the following documents: 
  Aadhaar Card/ Passport/ Voter’s ID Card/ PAN Card/ Driving License
• Address Proof- Copy of any of the following documents: 
  Aadhaar Card/ Passport/ Voter’s ID Card/ Driving License
• Bank Statement of previous 6 months
• Latest ITR and computation of income, Balance Sheet and Profit & Loss account for last 2 years certified or audited by CA
• Proof of business continuation (ITR/ Trade license/ Establishment/ Sales Tax Certificate)
• Others:
• Declaration of Sole Proprietorship
• Certified Copy of Partnership Deed
• Certified true copy of Memorandum & Articles of Association (certified by Director)
• Original board resolution

How to apply for an HDFC Business Loan?

It is 100% contactless to apply for HDFC Business Loan. All you need to do is check your eligibility and apply for the desired amount online. Follow these steps.

1. Check loan eligibility by using Business Loan Eligibility Calculator.
2. You may also directly fill the business loan form online. The loan form will typically ask for applicant’s name, company name, details of partners, year of business Incorporation/Service Tax Registration, loan amount, turnover, city of operation, net profit after tax, contact number, email etc.
3. Upload documents (as listed above) and press apply.
4. You will get in-principal approval & a bank representative will contact you.
5. The entire process will be completed without any touch points.

You may also choose to compare different types of business loans before filling the application form.

Factors that help your business loan application:

• Credit History: A good credit history always help your loan application. In case you have successfully paid out your Home Loan, or Personal Loan, chances are high that your loan application is preferred by the bank.
• Credit Utilization Ratio: Make sure your personal and corporate Credit Card utilisation is optimal. Always ensure that you repay the outstanding balance on or before the due date. The delay in Credit Card payments is negative for loan applications.
• Documentation: Make sure you have all the required documents along with a valid proof of business continuation and profit-making entity.
• EMI/NMI Ratio: If there are too many EMIs to serve each month, it will lower the chances of approval. Your overall loan eligibility reduces when you have existing loans.

All in all, keep all these factors in mind and the lender will certainly approve your loan application.