How to Apply for a Business Loan from HDFC Bank in India
If you’re running a small or medium business and need funds to expand or manage operations, HDFC Bank offers unsecured business loans that are easy to access if you meet certain criteria. Here’s a step-by-step guide to help you apply.
✅ Step 1: Check Eligibility Criteria
Before applying, ensure you meet the bank’s minimum requirements:
- You should be self-employed and operating as a sole proprietor, partnership, or private limited company.
- Your business must have a minimum annual turnover of ₹40 lakh.
- You should have at least 3 years of business operations and 5 years of overall business experience.
- Your business must be profitable for the past 2 years.
- You must have filed income tax returns showing a minimum income of ₹1.5 lakh annually.
- Age criteria: Minimum 21 years and maximum 65 years at the time of loan maturity.
📑 Step 2: Gather Required Documents
Prepare the following documents before submitting your application:
- Identity Proof: PAN card (individual and business), Aadhaar, Passport, Voter ID, or Driving Licence.
- Address Proof: Aadhaar, utility bill, Passport, or similar official documents.
- Financial Documents:
- Bank statements of the last 6 months.
- Income tax returns for the last 2 years, including computation of income, balance sheet, and profit & loss account audited by a Chartered Accountant.
- Business Proof: Business registration certificate, trade license, GST certificate, or similar documentation.
- Additional Documents Based on Entity Type:
- For proprietorship: Declaration of proprietorship.
- For partnerships: Partnership deed.
- For private limited companies: Certificate of incorporation, Memorandum & Articles of Association, and Board resolution for loan authorization.
🏦 Step 3: Choose How You Want to Apply
Option 1: Online Application
- Visit the official website of HDFC Bank.
- Select the business loan section and click on “Apply Now”.
- Fill in basic personal and business details.
- Upload the required documents.
- After eligibility check and verification, the bank will process your application.
Option 2: Visit a Branch
- Go to your nearest HDFC Bank branch.
- Collect and fill out the business loan application form.
- Submit the form along with the necessary documents.
- The bank will assess your application, check your credit profile, and contact you for further steps.
💰 Step 4: Understand Key Loan Terms
- Loan Amount: Up to ₹40 lakh (can go up to ₹50 lakh in select cities).
- Interest Rate: Typically ranges between 11% to 21% per annum, depending on the profile.
- Tenure: Usually from 1 to 4 years (12 to 48 months).
- Processing Fee: Approximately 0.99% to 2.5% of the loan amount.
- Prepayment Charges: May vary between 2% to 4%, depending on how early the loan is closed.
- Security/Collateral: Not required; it is an unsecured loan.
- Guarantor: Not required.
📊 Step 5: Maintain a Good Credit Score
A healthy credit score (typically 700 or above) significantly improves your chances of loan approval. Make sure there are no unpaid loans or credit card dues on your report before applying.
💡 Tips for a Successful Application
- Maintain a healthy bank balance and positive business cash flow.
- Ensure your ITRs and financials are accurate and updated.
- Build a good transaction history with HDFC Bank if possible.
- Avoid third-party agents—contact the bank directly or through its official website.
💼 For Newer or Smaller Businesses
If your business is less than 3 years old or your turnover doesn’t meet the minimum requirements, you might find it difficult to get a loan from a private bank. In such cases, consider exploring government-backed schemes like CGTMSE (Credit Guarantee Fund for Micro and Small Enterprises), available through public sector banks.
✅ Quick Summary Table
| Requirement | Details |
|---|---|
| Minimum Turnover | ₹40 lakh annually |
| Business Age | At least 3 years |
| Profitability | Profitable for the last 2 years |
| Credit Score | 700+ (recommended) |
| Collateral | Not required |
| Application Mode | Online or via branch |
| Max Loan Amount | ₹40–50 lakh |
| Tenure | 12 to 48 months |
| Processing Fee | 0.99% to 2.5% |
🚀 Final Words
Getting a business loan from HDFC Bank is a straightforward process if your business meets the criteria and your financial records are in order. If you’re unsure or applying for the first time, visit a local branch and speak to a relationship manager who can guide you step-by-step.
