Business loan in 2 of the Great Ind.Banks-HDFC&Axis

This article will try to present an honest review of Business loans of 2 of the best Indian Private Sectors Banks HDFC Bank and Axis Bank. In the end, it will be your choice whether to take a loan or not.

Business Loan Providing Banks

HDFC

HDFC Bank Provides Loan for Growth and development of businesses.

What is HDFC Business Loan

There is no need to pledge any collateral security but the loan is given for a stipulated time period.

This Loan is designed in such a way that can help you in the development of your business to the next level and can help in covering your few expenses.

Amount of Business loan without collateral, without a guarantor, and security

You can avail of loans up to Rs. 40 lakhs (Rs. 50 lakhs in some selected cities). The most important thing is you don’t need any collateral, guarantor, or security to avail the benefits of this loan.

Collateral is some asset or instrument which is needed for taking any business loan. A guarantor is a person who takes a guarantee on behalf of you as in case if you fail to repay the loan guarantor takes your guarantee that he/she/it will pay off your balance loan amount to the bank.

You can also take this loan for the working capital of your business.

Business Loan HDFC

Eligibility Criteria for HDFC Bank Business Loan

  • Applicant age should be in between 21 years and 65 years. It means at the time of applying for a loan a person should not be less than 21 years of age and at the time of approval of the loan he/she should not be more than 65 years.
  • A person who is applying for the loan should be a Self-employed individual or proprietor or Private Ltd. Co. or Partnership Firms involved in the business Trading, Manufacturing, or Services.
  • There should be a minimum turnover of Rs.40 Lakhs from the business.
  • An individual should have a total of 5 years experience and at least 2 years experience in the current or present business.
  • The business should have a minimum annual income as per ITR is 1.5 lakhs per annum.
  • The Business is earning profit since last 2 years.

Similar Post:- You can also read personal loans in HDFC and Axis Bank by clicking here

Benefits of Business Loan from HDFC Bank

  • Transfer of loan balance easily
  • An Overdraft Facility is there which means you only have to pay interest charges on the balance amount you utilized
  • Minimum Documentation
  • No security is Needed (unsecured loan)
  • You will get Credit Protection Plan
  • It works as a good working capital loan. You may never face the issue of working capital with this business loan.
  • Tenure Options are flexible
  • Payment of Interest only if you utilize funds for your business.

Fees and Charges

The Interest charges, fees, and other charges might change in the future. We had taken interest rates and charges as it is from the HDFC Bank official website.
Enclosed below are HDFC Bank Business Loan Interest Rates & Charges.

FeeCharges
Rack Interest Rate RangeMin 11.90% & Max  21.35%
Loan Processing ChargesUp to 2.50% of the loan amount subject to a minimum of Rs.1000/- and a Maximum of Rs.25,000/- for salaried customers and Rs. 75,000/- for self-employed customers as per the board note.
Prepayment- Part or FullNo pre-payment in part or full permitted until repayment of 6 EMIs

Part-payment allowed after 12 EMIs up to 25% of principal outstanding. It is allowed only once in the financial year and twice during the loan tenure.
Pre-payment charges06-24 months – 4% of principal outstanding,
25-36 months – 3% of principal outstanding
>36 months – 2% of principal outstanding
Loan Closure LetterNIL
Duplicate Loan Closure LetterNIL
Solvency CertificateNot applicable
Interest Rates Data is taken from the HDFC Bank official website as of 30th July 2021

Charges Post Loan Disbursement

FeeCharges
Overdue EMI Interest2% per month
Charges for changing from fixed to a floating rate (An interest rate that is allowed to move up and down with the rest of the market or along with an index.) of interestNot applicable
Charges for changing from floating to fixed-rate (An interest rate that will remain at a predetermined rate for the entire term of the loan.) of interestNot applicable
Stamp Duty & other statutory chargesAs per applicable laws of the state
Credit assessment chargesNot applicable
Nonstandard repayment chargesNot applicable
Cheque swapping chargesRs 500/-
Amortization Schedule chargesRs 200/-
Loan cancellation chargesNIL (However Interest would be charged for the interim period between the date of loan disbursement and date of loan cancellation and processing fees would be retained)
Cheque Bounce ChargesEffective from 1st July 2021
1st return at Rs.450 + taxes per instance
2nd in a month Rs.500 + taxes per instance
& 3rd onwards Rs.550 + taxes per instance

(10% discount for Senior Citizens)

​​​​​​​Effective till 30th June 2021

₹ 550/- per cheque bounce
Data is taken from the HDFC Bank official website as of 30th July 2021

Rates Offered To Customer During The Period Of 1st April To 30th June, 2021

IRRQ4 (2020-21)
Min IRR10.00%
Max IRR20.25%
Avg IRR11.42%
Data is taken from the HDFC Bank official website as of 30th July 2021

Annual Percentage Rate Offered To Customer During The Period Of Jan’21 – March-21

APRQ4 (2020-21)
Min APR9.50%
Max APR20.57%
Avg APR16.28%
Data is taken from the HDFC Bank official website as of 30th July 2021

*Government taxes and other levies as applicable will be charged over and above the fees
​​​​​​​

Loan at the sole discretion of HDFC Bank Ltd.

Documentation

The following documents will be needed

  • Loan Application
  • For Identity proof, HDFC bank will require a photocopy or softcopy of any 1 of PAN Card, Aadhar Card, Passport, Voter ID, or Driving License.
  • Photocopy or softcopy of any 1 of PAN Card, Aadhar Card, Passport, Voter ID, or Driving License for address proof will be required.
  • Proof of continuation of business (ITR/Establishment/Sales Tax Certificate/Trade license)
  • Latest Bank Statement of previous 6 months
  • The latest ITR and computation of income, Profit and Loss Account & Balance Sheet of last 2 previous years are duly attested or signed by Chartered Accountant.
  • Some Other Necessary Documents [Certified Copy of Partnership Deed, Sole Prop. Declaration Or A certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)].

Axis Bank

Axis Bank also Provides Loans for the Growth and development of businesses.

What is Axis Business Loan

There is no need to pledge any collateral security but the loan is given for a stipulated time period.


This Loan is designed in such a way that can help you in the development of your business to the next level and can help in covering your few expenses.


Amount of Business loan without collateral, without a guarantor, and security.


You can avail of loans up to Rs. 50 lakhs. The most important thing is you don’t need any collateral, guarantor, or security to avail the benefits of this loan.


Collateral is some asset or instrument which is needed for taking any business loan.

A guarantor is a person who takes a guarantee on behalf of you as in case if you fail to repay the loan guarantor takes your guarantee that he/she/it will pay off your balance loan amount to the bank.


You can also take this loan for the working capital of your business.

Business Loan Axis

Eligibility Criteria for Axis Bank Business Loan

  • The applicant’s age should be in between 21 years and 65 years. It means at the time of applying for a loan a person should not be less than 21 years of age and at the time of approval of the loan, he/she should not be more than 65 years.
  • A person who is applying for a loan should be a Self-employed individual or proprietor or Private Ltd. Co. or Partnership Firms involved in the business Trading, Manufacturing or Services Limited Liability Partnership Firms, Trust and Societies (for educational institutes/Hospitals)
  • There should be a minimum turnover of Rs.30 Lakhs from the business.
  • Business should be at least 3 years old.

Similar Post:- You can also read personal loans in HDFC and Axis Bank by clicking here

Benefits of Business Loan from Axis Bank

  • Transfer of loan balance easily
  • An Overdraft Facility is there which means you only have to pay interest charges on the balance amount you utilized
  • Minimum Documentation
  • No security is Needed (unsecured loan)
  • You will get Credit Protection Plan
  • It works as a good working capital loan. You may never face the issue of working capital with this business loan.
  • Tenure Options are flexible
  • Payment of Interest only if you utilize funds for your business.

Fees and Charges

The Interest rates will be determined after considering the business profile, Past track record, financial assessment, loan tenure, and loan amount.

Documentation

The following documents will be needed

  • Loan Application Signed by the customer
  • KYC Documents will be required.
  • Relevant Financial Documents
  • Bank Statement of previous 6 months will be needed
  • Business Proof will be required
  • PAN Card/Form 60 Will be Required

Important Note

  1. We had taken the helps of The Great HDFC as well as The Great Axis Bank Official websites for writing this post. So the credit of this post goes to HDFC Bank and Axis Bank.
  2. We had added the company logo and Interest and other charges table from their websites for Review and Discussion Purposes and in good faith. If the company owners object to it. They can contact us. We will remove it within 48 hours. The Credit of the Logo is going to HDFC Bank and Axis Bank.

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