Business Loans from HDFC Bank

A brief summary of different business loans for corporate borrowers

HDFC Bank is a publicly listed company though a subsidiary of the Housing Development Finance Corporation. It was incorporated in 1994 in Worli, Mumbai (Maharashtra).

Fast forward to 2020, it has now over 5500+ branches all across the nation. Easily one of the fast-growing private banks in India, HDFC Bank offers a range of loan schemes to different segments of its customer base. The special loan schemes for businesses include working capital loans, term loans, mortgage loans and industry-specific loans.

If you are looking for a loan to meet your business needs, you must check out the different types of business loans offered by the bank. Let’s take a look at them as promised.

Working Capital and Term Loans

HDFC Banks offers corporate loan schemes that businesses can borrow to meet their working capital and capital expenditure needs. These loans are:

• HDFC Bank Business Growth Loan: Businesses in the manufacturing, trading and services sector can use funds from this loan to run their business on a day-to-day basis or to invest in business growth and expansion-related activities. The unique thing about this loan scheme is that businesses can avail of the balance transfer to transfer their business loan from other banks or lending institutions to HDFC Bank. This is a collateral-free loan and must be repaid within 4 years

• HDFC Bank Business Loan for Professionals: Self-employed professionals such as doctors, architects, Chartered Accountants and Company Secretaries can get this loan to meet the financial needs of their consulting or private practice business. The maximum loan amount sanctioned by HDFC Bank under this loan scheme is Rs. 50 lakh. The repayment period for this loan is 4 years

Asset-Backed Loans

HDFC Bank offers business loans that borrowers can get by pledging their assets such as property, securities, etc. Since these are secure loans, the interest rate may be lower as compared to collateral-free loans. They are:

• HDFC Bank Loan Against Rent Receivables: Businesses can get access to funds by mortgaging a commercial property such as a shop or office leased to public sector undertakings, reputed private education institutions, reputed private hospitals or nursing homes, franchises of reputed corporates, etc. under this loan scheme. The maximum loan amount is up to 50% of the value of the commercial property. This loan must be repaid within 9 years

• HDFC Bank Loan Against Securities: Businesses can get funds to meet their working capital and capital expenditure needs by pledging securities such as shares, mutual funds and insurance policies. The maximum loan amount is up to 80% of the value of the securities pledged to the bank. The repayment period of this loan is decided by the bank on a case-to-case basis

• HDFC Bank Digital Loan Against Mutual Funds: Businesses can get financial assistance to meet their working capital and capital expenditure needs by pledging mutual fund units to the bank. This is a digital loan which means that all the formalities related to the loan are completed online. The maximum loan amount sanctioned by the bank is up to 80% of the value of the mutual funds pledged to the bank

A Final Word

Now you know about the different types of HDFC Bank business loans. If you are interested in knowing more about business loans, please check out our business loans page where we have covered popular loan schemes offered by major Indian banks in some detail.