HDFC Bank MSME Loans: 5 Lending Schemes for Small Businesses

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Small Business Loans from HDFC Bank

Types of HDFC Bank MSME loans for small businesses in India.

Small businesses are critical for the economic growth and development of a country. This is one of the many reasons why financial institutions across the world focus on helping small businesses grow and flourish by offering them special schemes. It is no different in India.

One of India’s largest private sector banks, HDFC Bank, offers a range of small business loans to help MSME units get funds to meet their short-term and long-term business needs.

Let’s look at a few of them.

HDFC Bank Working Capital Loan

This small business loan is designed to finance everyday operations of MSME units such as making raw material purchases, salary payments and bills payment. It can be taken for all projects and activities related to running of the business on a day-to-day basis. Like most working capital schemes, this is a short-term loan. The borrower has to repay it in 12 months. However, it can be renewed on an annual basis subject to terms.

HDFC Bank Term Loan

The HDFC Bank term loan scheme offers funds to businesses in the Micro, Small and Medium Enterprises sector to meet their business growth and expansion-related needs including the acquisition of fixed assets such as land and machinery. The repayment period for this loan is 5 years. However, the bank also offers short-term loan schemes based on the needs of the borrower.

HDFC Bank Quick Business Loan

This MSME loan is designed to help small businesses meet their working capital and capital expenditure needs. It is like a working capital loan and term loan rolled into one perfect lending scheme. The maximum loan amount sanctioned under this loan is Rs. 15 lakh. HDFC Bank may offer Rs. 50 lakh at select locations in the country subject to the repayment capacity of the borrower in addition to other terms.

HDFC Bank Healthcare Finance

This loan scheme is specially designed to help doctors and medical practitioners meet their working capital requirements and capital expenditure needs. They can use the funds from this loan to set up a hospital, clinic, nursing home, pathology lab or purchase equipment, vehicles, ambulance. The repayment period of this loan may range from 1 to 7 years.

HDFC Bank Trade Finance

SME businesses in the trading sector can benefit from this loan scheme and pay for activities right from sourcing raw materials to manufacturing goods. The bank extends this loan in Indian and 16 foreign currencies. HDFC Bank also offers assistance to SME businesses in the trading sector in the form of Letter of Credit, Bank Guarantee, etc.

A Final Word

Now you know about the different types of MSME loans offered by HDFC Bank. The bank may offer more loan schemes that are not yet mentioned on the bank’s website. If you are wondering about small business loans offered by other banks to shortlist a suitable option for yourself, we suggest checking out our MSME loans page where we have covered small business loans offered by major Indian banks.

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