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Key Features of HDFC Bank SME/MSME Loans

  • Loan Amount: Up to ₹75 lakh, with ₹50 lakh as the standard upper limit and up to ₹75 lakh in select locations.
    For specific schemes like Pradhan Mantri Mudra Yojana (PMMY), loans up to ₹10 lakh are available for non-corporate, non-farm small/micro enterprises.
    Collateral-free loans up to ₹1 crore under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) for retail traders.
  • Collateral-Free Options: Unsecured loans are available, meaning no collateral or guarantor is required for loans up to ₹50 lakh (or ₹75 lakh in select locations).
    Collateral-free loans up to ₹5 crore under the CGTMSE scheme for manufacturing, service industries, and retail/wholesale traders.
  • Competitive Interest Rates: Interest rates range from 10.75% to 25% per annum, depending on the loan product and borrower profile.
    Specific products like XPRESS Business Loan for Doctors start at 10.99% p.a.
    Working capital loans and balance transfer facilities may offer rates as low as 11.90% p.a.
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    • Loan Amount: Maximum loan amount up to ₹5 crores for Medium Enterprises. For Micro Enterprises, financing up to ₹25 lakhs (manufacturing sector) or ₹10 lakhs (service sector).
    • Interest Rates: Competitive rates, often linked to government schemes like CGTMSE or priority sector lending. Specific rates vary based on the scheme and borrower's credit profile.
    • Loan Tenure: Flexible repayment schedules, ranging from short-term (e.g., 8 months for Mitra Loan) to longer terms (up to 7–10 years). Moratorium periods available (e.g., up to 7 years for principal repayment in certain schemes).
    • Security and Collateral: Collateral-Free Loans: Available for loans up to ₹1 crore under CGTMSE with guarantee coverage (85% for loans up to ₹5 lakhs, 75% for others). For loans not covered under CGTMSE, collateral or third-party guarantees may be required.
    • Repayment Options: Flexible repayment through Equated Monthly Installments (EMIs). Bullet payment option available for short-term loans like MSME - Mitra Loan. Annual renewal for working capital facilities.
    • Processing Fees and Charges: Nominal guarantee fee (1%–1.5%) and annual service fee (0.5%–0.75%) for CGTMSE-backed loans. Documentation charges and other fees vary by scheme and loan amount.
    • Eligibility Criteria: Age: Minimum 18 years at loan sanction. Business Continuity: Typically 1-2 years of operations for existing businesses. Entities: Individuals, proprietorships, partnerships, LLPs, private/public limited companies engaged in MSME activities. Credit Score: Preferably good credit history with no defaults.
    • Digital Application Process: Online application through bank's official website or via portals like www.psbloansin59minutes.com for quick digital approval. Minimal documentation for digital applications.
    • Government Support and Subsidies: CGTMSE Coverage: Collateral-free loans with guarantee cover. Credit Linked Capital Subsidy Scheme (CLCSS): 15% subsidy on investments up to ₹1 crore for technology upgradation. PMMY Scheme: Support for micro-enterprises under the Pradhan Mantri Mudra Yojana.
    • Additional Benefits: Support for women entrepreneurs and SC/ST borrowers. Priority sector lending benefits. Access to technology upgradation subsidies.
    • Flexible Repayment Tenure: Loan tenures range from 12 to 60 months (1 to 5 years), allowing businesses to align repayments with cash flow cycles. Repayment through Equated Monthly Installments (EMIs) with options to customize based on business needs.
    • Quick Disbursal: Streamlined application process with approvals in as little as 59 minutes for certain schemes. Pre-approved customers can get funds disbursed in 10 seconds with minimal or no documentation. General processing time is within 5 working days, subject to complete documentation.
    • Variety of Loan Products:
      • Working Capital Loans: For day-to-day operations, inventory purchase, or managing cash flow, with fund-based (cash credit, overdraft) and non-fund-based (letter of credit, bank guarantee) options.
      • Term Loans: For business expansion, equipment purchase, or infrastructure development, with tenures up to 5 years.
      • Overdraft Facilities: Includes Overdraft Against Property, Fixed Deposits, Merchant Overdraft, Dropline Overdraft, and Dukandar Overdraft for retailers.
    • Specialized Schemes: Loans under PMMY, Stand Up India (for SC/ST and women entrepreneurs), and CGTMSE. Loans for professionals (e.g., doctors, chartered accountants) and women-led self-help groups (SHGs) or joint liability groups (JLGs).
    • Minimal Documentation: Requires basic documents like PAN card, identity/address proof, income tax returns, and proof of business continuation (e.g., trade license, sales tax certificate). Pre-approved customers face no paperwork for certain loans.
    • Customized Solutions: Loans tailored for specific sectors like manufacturing, trading, services, retail, and professionals. Support for diverse needs such as purchasing machinery, upgrading technology, skill development, or meeting working capital requirements.
    • Additional Benefits:
      • Balance Transfer Facility: Transfer existing loans to HDFC Bank for lower interest rates (e.g., 15.75% p.a.) and reduced EMIs.
      • Credit Protect Plan: Payment Protection Insurance covers the outstanding principal in case of natural/accidental death, with premiums deducted at disbursal.
      • Doorstep Service: Assistance from dedicated relationship managers for a hassle-free experience.
      • No Prepayment Charges: For fixed-rate loans up to ₹50 lakh availed by micro and small enterprises.
      • Digital Banking Support: Access to online platforms like PayZapp and MyCards for efficient transaction management.
    • Government-Backed Schemes: Support for schemes like MUDRA Yojana, Stand Up India, and CGTMSE, offering low-interest or collateral-free loans. Special provisions for SC/ST and women entrepreneurs, with loans between ₹10 lakh to ₹1 crore under Stand Up India.
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Benefits of HDFC Bank SME Loans

  • Access to Capital: Loans up to ₹75 lakh (₹50 lakh standard, ₹75 lakh in select locations) to fund business expansion, working capital, equipment purchase, or inventory needs. Collateral-free loans up to ₹1 crore under CGTMSE or ₹10 lakh under PMMY, making funding accessible without asset pledging.
  • Financial Flexibility: Flexible repayment tenures (12 to 60 months) align with business cash flow, reducing repayment stress. Variety of loan products (term loans, working capital, overdrafts) tailored to specific needs like daily operations, growth, or emergencies.
  • Competitive Interest Rates: Rates range from 10.75% to 25% p.a., with specialized products like XPRESS Business Loan for Doctors starting at 10.99% p.a. Balance transfer options at lower rates (e.g., 15.75% p.a.) reduce EMI burdens for existing loans.
    • Quick and Easy Access: Fast approvals and disbursals (10 seconds for pre-approved customers). Minimal documentation, especially for pre-approved customers, streamlines the application process.
    • No Collateral Requirement: Unsecured loans up to ₹50 lakh eliminate the need for collateral or guarantors, reducing risk for business owners. CGTMSE-backed loans up to ₹5 crore for manufacturing, services ease access.
    • Support for Diverse Needs: Funds for working capital, machinery purchase, technology upgrades, skill development, or retail expansion. Specialized schemes for professionals, women entrepreneurs, SC/ST businesses.
    • Cost-Saving Features: No prepayment charges for fixed-rate loans up to ₹50 lakh for micro and small enterprises. Balance transfer facility lowers interest costs and EMI outflows.
    • Enhanced Business Operations: Overdraft facilities provide liquidity for retailers and traders to manage daily transactions. Non-fund-based options like letters of credit and bank guarantees support trade and contractual obligations.
    • Government Scheme Benefits: Access to low-cost, CGTMSE, and Stand Up India, promoting inclusive growth for underserved segments. Subsidized rates and priority sector lending for eligible businesses.
    • Convenience and Support: Doorstep service and dedicated relationship managers ensure a hassle-free experience. Digital tools like PayZapp and MyCards simplify transaction management.
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How to Apply for HDFC Bank SME Loans

  • 1. Visit the Official Website
    • Go to HDFC Bank’s official site: www.hdfcbank.com.
    • Navigate to the “Business Banking” or “SME/MSME Loans” section or specific pages for Business Loans, Working Capital Loans, MUDRA, CGTMSE, etc.
  • 2. Choose the Loan Product
    • Select the appropriate loan type such as Term Loan, XPRESS Business Loan, Overdraft, MUDRA, or Stand Up India based on your needs.
    • Review eligibility, features, and limits (e.g., ₹75 lakh under XPRESS Loan, ₹1 crore under CGTMSE).
  • 3. Check Eligibility
    • Use online calculators if available by providing details like turnover, business vintage, and loan amount.
    • Pre-approved customers can check offers via net banking or the HDFC Bank mobile app.
  • 4. Fill and Submit the Application
    • Click “Apply Now” for the selected loan product.
    • Provide personal, business, and loan details as required.
    • Upload scanned copies of necessary documents (PDF or JPEG).
    • Submit the form and save the reference number for tracking.
  • 5. Verification and Approval
    • HDFC Bank will verify your documents and may contact you for clarification.
    • Approval time: As quick as 59 minutes for select schemes, usually within 5 working days.
    • Pre-approved offers may be disbursed instantly.
  • 6. Loan Disbursal
    • Sign the loan agreement digitally or physically.
    • Funds are disbursed to your HDFC Bank account or another linked business account.
  • 7. Offline Application Option
    • Visit your nearest HDFC Bank branch using their branch locator.
    • Consult a Relationship Manager for guidance on product selection and documentation.
    • Fill out and submit a physical loan application form along with required documents.
    • Processing time is usually 5 working days.
  • 8. Required Documents
    • Identity Proof: PAN, Aadhaar, passport, voter ID, or driver’s license.
    • Address Proof: Aadhaar, passport, utility bill, or rent agreement.
    • Business Proof: Incorporation certificate, partnership deed, Shop Act license, GST certificate.

Eligibility Criteria for HDFC Bank SME Loans

  • 1. Business Type
    • Sole Proprietorship, Partnership, Private Limited Company, LLP, or Trust.
    • Eligible businesses: manufacturing, trading, services, retail, wholesalers, professionals (e.g., doctors, chartered accountants).
  • 2. Business Vintage
    • Minimum 3–5 years of continuous operations (depends on loan product).
    • Relaxed requirements for schemes like PMMY for micro-enterprises.
  • 3. Age of Applicant
    • Between 21 and 65 years for the business owner or primary applicant.
    • Key person in partnerships/companies must meet age criterion.
  • 4. Turnover
    • Minimum turnover typically starts from ₹40 lakh (depends on product).
    • Lower thresholds may apply for micro-enterprises under MUDRA.
  • 5. Credit Score
    • Preferred CIBIL score: 700 or above.
    • No defaults or overdue loans.
  • 6. Nationality and Residency
    • Applicant must be an Indian resident.
    • Business must be registered and operating in India.
  • 7. Banking Relationship
    • Preference to existing HDFC Bank customers for faster processing.
    • Some products may require an HDFC current account.
  • 8. Scheme-Specific Eligibility Criteria
    • HDFC Business Loan / XPRESS Business Loan: 3 years in current business, 5 years of experience, turnover > ₹40 lakh, profit-making for 2 years, collateral-free loans up to ₹50–75 lakh.
    • Working Capital Loans (CC/OD): Stable cash flow, 3–5 years vintage, evaluated on GST returns and bank statements.
    • Overdraft Facilities: Traders/retailers with 3 years vintage. Requires shop/property for Dukandar OD or POS/UPI activity for Merchant OD.
    • PMMY: Non-corporate micro/small units (loan up to ₹10 lakh), Udyam registration, viable plan needed.
    • CGTMSE: Micro/small enterprises with 2–3 years ops, up to ₹1 crore (₹5 crore in some sectors), Udyam registration required.
    • Stand Up India: SC/ST or women entrepreneurs, greenfield enterprise, ₹10 lakh–₹1 crore, 51% ownership, 3 years experience or plan.
    • Loans for Professionals: Certified doctors/CAs, 2–3 years of practice, doctors must have a clinic for certain loans.
    • Women Entrepreneurs / SHGs / JLGs: 1–2 years of activity, linked with HDFC or NGO, eligible for special schemes/low interest.
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Documents Required for HDFC Bank SME Loans

  • 1. Loan Application Form:
    Duly filled and signed HDFC Bank loan application form (can be obtained at the branch or online if available).
  • 2. Identity Proof (for Applicant/Primary Business Owner):
    PAN Card (mandatory)
    Aadhaar Card
    Voter ID
    Passport
    Driving License
  • 3. Address Proof (for Applicant and Business):
    Aadhaar Card
    Utility bills (electricity/gas/telephone, not older than 3 months)
    Rent Agreement (with utility bill in landlord's name)
    Passport
    Proof of business address (e.g., shop lease agreement, trade license)
  • 4. Photograph:
    Recent passport-size photographs of the applicant (usually 2-3 copies)
  • 5. Business-Related Documents:
    Certificate of Incorporation (for companies)
    Partnership Deed (for partnerships)
    Shop & Establishment License or Trade License
    GST Registration Certificate
    Udyam Registration Certificate (mandatory for MSME classification)
    Memorandum & Articles of Association (for Pvt. Ltd./LLP firms)
  • 6. Proof of Business Continuity:
    GST returns or bank statements showing 3-5 years of continuous business operation
    Sales tax certificate
    For startups under schemes like MUDRA, a viable business plan may be accepted
  • 7. Financial Documents:
    Income Tax Returns (ITR) for the last 2-3 years with computation of income
    Audited Balance Sheet and Profit & Loss Statement (for the last 2 years)
    Provisional financials for the current year (if applicable)
    Business bank statements for the last 6-12 months
    GST return copies for the last 1-2 years
  • 8. Loan-Specific Documents:
    For Balance Transfer Loans: Existing loan statement, sanction letter from the current lender
    For Overdraft Against Property: Property documents, valuation report, NOC from housing society
    For Professionals: Qualification and registration certificates (e.g., MBBS, CA)
    For PMMY: Udyam Registration, business plan/project report
    For CGTMSE: Udyam Registration, CGTMSE application, business profile
    For Stand Up India: Caste certificate (for SC/ST), Aadhaar (for women), project report, shareholding proof (51%)

Factors Considered for HDFC Bank SME/MSME Loans

  • 1. Credit Score and Credit History
    A CIBIL score of 700 or above is generally preferred. The bank assesses the repayment history, loan defaults, high credit usage, and any red flags in the credit report such as settlements or frequent inquiries.
  • 2. Business Vintage and Stability
    Minimum of 3–5 years of continuous business operation is typically expected. However, relaxed conditions may apply under schemes like PMMY for micro-enterprises. Consistency in operations is verified through GST returns and bank statements.
  • 3. Financial Performance and Turnover
    A healthy annual turnover (₹40 lakh or more preferred), profitability in the last 1–2 years, and consistent cash flow are vital. Debt-to-income ratio is checked to ensure manageable EMI obligations.
  • 4. Business and Applicant Profile
    Eligible entities include proprietorships, partnerships, LLPs, private limited companies, and trusts. The applicant should be between 21–65 years. For professionals, qualifications and years of practice are considered.
  • 5. Loan Purpose and Viability
    Loans must serve legitimate business purposes like working capital, machinery purchase, or expansion. A viable business plan or project report is essential, especially for startups and government-linked loans.
  • 6. Collateral and Security
    Loans up to ₹1 crore may be collateral-free under CGTMSE. Higher-value loans might require property, FDs, or guarantor backing. Secured products like Overdraft Against Property are also available.
  • 7. Documentation and Compliance
    Submission of PAN, Aadhaar, business proof, GST returns, ITRs, and Udyam Registration (if applicable) is mandatory. Government schemes may require additional documents like caste certificates or ownership proof.
  • 8. Banking Relationship
    Existing account holders with HDFC Bank may benefit from quicker processing or pre-approved offers. A good transaction history improves the chances of approval and better loan terms.
  • 9. Industry and Economic Factors
    The bank assesses the growth potential of the business sector, market conditions, and geographic location. Businesses in stable or high-growth sectors are more likely to receive favorable terms.
  • 10. Government Scheme Eligibility
    Eligibility under schemes like PMMY (Mudra Loans), CGTMSE, Stand Up India, etc., is verified. Udyam Registration, viability of the project, and applicant background (SC/ST, women entrepreneurs) play a key role.
  • 11. Risk Assessment
    The bank evaluates credit risk, operational risk, and market exposure. Businesses with strong customer bases and low market dependency are more favorable.

Frequently Asked Questions (FAQs)

1. What are HDFC Bank SME/MSME loans?
HDFC Bank SME/MSME loans are financial products designed for small and medium enterprises or micro, small, and medium enterprises to support business needs like working capital, expansion, equipment purchase, or debt consolidation. They include term loans, overdrafts, working capital loans, and government-backed schemes like PMMY, CGTMSE, and Stand Up India, offering up to ₹75 lakh (or ₹1 crore under CGTMSE) with competitive rates and flexible terms.
2. Who is eligible for HDFC Bank SME/MSME loans?
Eligibility depends on the loan product but generally includes:
- Businesses (proprietorship, partnership, Pvt. Ltd., LLP) with 3–5 years of operation.
- Applicant age: 21–65 years.
- Minimum turnover: ₹40 lakh (varies by product).
- Good CIBIL score (700+ preferred).
- Specific schemes (e.g., Stand Up India) require SC/ST or women entrepreneurs with 51% ownership.
- Professionals (e.g., doctors, CAs) need valid qualifications and 2–3 years of practice.
- Udyam Registration is mandatory for MSME benefits or government schemes.
3. What types of SME/MSME loans does HDFC Bank offer?
HDFC Bank offers:
- Business Loans: For expansion, equipment, or general business needs (up to ₹75 lakh).
- Working Capital Loans: Cash credit or overdraft for daily operations.
- Overdraft Facilities: Dukandar Overdraft, Merchant Overdraft, Overdraft Against Property, or Dropline Overdraft.
- Government Schemes: PMMY (up to ₹10 lakh), CGTMSE (up to ₹1 crore collateral-free), Stand Up India (₹10 lakh to ₹1 crore).
- Professional Loans: Tailored for doctors, CAs, etc.
- Women Entrepreneur Loans: For SHGs/JLGs or women-led businesses.
4. What is the maximum loan amount for SME/MSME loans?
- Standard loans: Up to ₹50 lakh (₹75 lakh in select locations).
- CGTMSE scheme: Up to ₹1 crore (₹5 crore for retail traders).
- PMMY: Up to ₹10 lakh.
- Stand Up India: ₹10 lakh to ₹1 crore.
- Larger amounts may be available for secured loans (e.g., against property) based on eligibility.
5. Are HDFC Bank SME/MSME loans collateral-free?
Yes, many loans are collateral-free:
- Up to ₹50 lakh (₹75 lakh in select locations) for standard SME loans.
- Up to ₹1 crore (₹5 crore for retail traders) under CGTMSE.
- Up to ₹10 lakh under PMMY.
Secured loans (e.g., Overdraft Against Property) require assets like property or fixed deposits.
6. What are the interest rates for SME/MSME loans?
Interest rates range from 10.75% to 25% per annum, depending on the loan product, applicant profile, and creditworthiness. Examples:
- XPRESS Business Loan for Doctors: Starts at 10.99% p.a.
- Balance Transfer: As low as 15.75% p.a.
- Working Capital: Starts at 11.90% p.a.
Rates for government schemes may be lower due to subsidies. Confirm with the bank for current rates.
7. What is the repayment tenure for SME/MSME loans?
Repayment tenure ranges from 12 to 60 months (1 to 5 years), depending on the loan product and amount. Flexible EMI options are available to align with business cash flow. Overdrafts may have renewable limits instead of fixed tenures.
8. What documents are required to apply for SME/MSME loans?
Common documents include:
- Identity/Address Proof: PAN, Aadhaar, voter ID, passport, or utility bill.
- Business Proof: GST registration, Shop Act License, Udyam Registration, or Certificate of Incorporation.
- Financials: ITR, balance sheet, profit & loss statement (last 2–3 years), bank statements (6–12 months).
- Loan-Specific: Property papers (for secured loans), existing loan statements (for balance transfer), professional certificates (for doctors/CAs).
- Government Schemes: Caste certificate (Stand Up India), business plan (PMMY).
Pre-approved customers may need minimal or no documentation.
9. How can I apply for an SME/MSME loan from HDFC Bank?
Online:
- Visit HDFC Bank’s website, select the loan product, fill the application form, upload documents, and submit. Pre-approved customers can apply via net banking or the mobile app.

Offline:
- Visit a branch, consult a relationship manager, submit the application form and documents.

You can track the application status online or via the branch using the reference number.
10. How long does it take to get an SME/MSME loan approved?
- Pre-approved customers: Instant disbursal (within 10 seconds) with minimal documentation.
- Standard applications: Approvals within 59 minutes for select schemes or 5 working days, subject to complete documentation.
- Government schemes may take longer due to additional verification.

List of HDFC Bank SME Loans

  • HDFC Bank Business Loan
  • HDFC Bank Working Capital Loan
  • HDFC Bank Overdraft Facility
  • HDFC Bank Overdraft Against Property
  • HDFC Bank Merchant Overdraft
  • HDFC Bank Dukandar Overdraft
  • HDFC Bank Dropline Overdraft
  • HDFC Bank Stand Up India Loan
  • HDFC Bank XPRESS Business Loan
  • HDFC Bank Pradhan Mantri Mudra Yojana (PMMY) Loan
  • HDFC Bank Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) Loan
  • HDFC Bank Professional Loan
  • HDFC Bank Women Entrepreneur Loan
  • HDFC Bank Self-Help Group (SHG)/Joint Liability Group (JLG) Loan