HDFC Bank Business Loan EMI Calculator

HDFC Bank business loan EMI calculator is designed to estimate the amounts to match the pocket of the borrower as per his requirements. It works as an EMI calculating tool that quickly ascertains the installments in few simple steps. The user needs to consider his loan amount, the interest rate of the monthly EMI, the tenure of the loan taken and the result will appear on the screen within few seconds. It will be very helpful to estimate the approximate loan amount which the borrower has to pay back. It will also be useful for the financial planning of the borrower.

How to calculate EMI for HDFC Bank Business Loan?

The HDFC business loan EMI calculator works on the formula and the loan amount can be computed by using this – E = P*R* [(1+R) ^ N] / [(1+R) ^ N-1)]

Here, 

E = Equated monthly installments (EMI)
P = Principal amount.
R = Interest rate per annum.
N = Tenure period of the loan.

Let’s take an illustration to understand this formula to calculate the EMI of the HDFC business loan.

Suppose Miss Ana has availed a loan from HDFC bank of about 23 lacs at the interest rate of 11.85% with a tenure period of 8 years. Now, to calculate the equated monthly installment of Miss. Ana, we have to put the given values in the above formula such as,

E = 23*11.85* [(1+11.85) ^ 8] / [(1+11.85) ^ (8-1)] we get,

E = Rs. 37,912.

However, it is complicated to solve this equation manually as it may have some calculating errors but if the borrower alternatively uses the HDFC bank loan calculator, then this will make the job easier by providing the accurate estimation without consuming more time.

[irp]

It is easy and hassle-free to calculate the HDFC business loan EMI calculator within few steps which is mentioned below:

1. First, the user has to enter the details of his/her loan such as principal amount, tenure, and interest rate of the loan.
2. Then by clicking the Calculate option, the estimated result shall be displayed instantly on the screen within seconds.

Features of HDFC Bank Business Loan

The key features of the HDFC business loan are as follows:

1. The HDFC business loan will fulfill every requirement of a person by offering the loan amount of up to Rs. 40 lacs without any collateral to fulfill every business requirement such as the working capital, business expansion, new business start-up, etc.
2. The borrower can easily transfer the existing HDFC bank business loan for the lower EMIs to enjoy the benefits provided by the HDFC bank at a low interest rate of 15.75% and low processing fee (0.99% on the transfer of the existing loan).
3. They also provide the overdraft facility from 5 lacs to 15 lacs without any guarantor for the tenure period of 12 to 48 months with an attractive interest rate.
4. The borrower can easily check the eligibility of the HDFC business loan online or from any branch of HDFC bank within 60 seconds.
5. The disbursal of the loan is based on the repayment of credit cards, auto loans, home loans, etc.
6. It provides the facility of a flexible tenure period of about 12-48 months.

Advantages of HDFC Bank Business Loan EMI Calculator

Following are the advantages of using the HDFC business loan EMI calculator:

• It provides completely secure input data.
• There is no requirement to register any website to use this calculator.
• It is an online tool so that the user can access it anywhere and anytime by following few steps. 
• There are no charges applied to it. The user is allowed to use it as many times as requires.
• It is easy, simple, and hassle-free to use.
• No calculating error will occur while using this calculator as compare to the manual calculation.
• It provides an accurate estimating result within few seconds.

Eligibility criteria of the HDFC Bank Business Loan

The person eligible to apply for the HDFC business loan are mentioned below:

• The applicant should be a self-employed individual, Private Ltd Co. or Partnership firms, the proprietor who is involved in the Trading or Services or Business of Manufacturing.
• The minimum age of the applicant must be 21 years at the time of applying for the loan and the maximum age is 65 years during the maturity of the loan.
• The applicant should have the business’s minimal annual income (IRT) of Rs. 1.5 lacs p.a
• The minimum turnover of the applicant’s business should be Rs. 40 lacs.
• The applicant must have a profit-making business from the previous 2 years.
• The applicant must have a total experience of 5 years and must be in the current business for at least 3 years.

Documents required for HDFC Bank Business Loan

The documents necessary to apply for the HDFC business loan are listed as under:

• PAN Card of the individual/firm/company.
• For the Identity proof, a copy of the following documents are required:

• • Aadhar Card
  • Driving License
  • Voter ID Card
  • PAN Card
  • Passport

• For Address proof, a copy of the following documents are required:

• • Driving License
  • Passport
  • Voter ID Card 
  • Aadhar Card
• Proof of continuation of the business entity such as Trade License/Sales Tax Certificate/IRT/Establishment.
• Bank Statement (previous six months).
• Latest IRT along with income computation.
• Profit & Loss Account and Balance Sheet of the business for the previous 2 years after being Audited/Certified from Chartered Accountant (CA).
• Other mandatory documents such as Certified original copy of Memorandum & Article of Association, Certified copy of sole-proprietor or partnership deed, etc.

HDFC Bank Business Loan – Fees & Charges

The basic interest rates, charges, processing fees applied on the HDFC business loan are enclosed below in the following points:

• Pre-payment charges as 4% of the principal outstanding applied on 6-24 months/ 3% on 25-36 months/ 2% on more than 36 months.
• Partially Prepayment charges applied as of up to 25% principal outstanding which will be allowed after 12th EMI. It is allowed only twice during the tenure period of the loan and once in the financial year.
• The Rack interest rate ranges from a minimum of 11.90% up to a maximum of 21.35%.
• The processing charges applied on the loan amount as per the board note are up to 2.50% which starts from a minimum of Rs. 1,000/- up to a maximum amount of Rs. 25,000/- for salaried person and for the self-employed it is up to Rs. 75,000/-

Frequently Asked Questions

Q1. Which schemes are sponsored by the HDFC bank? Explain its features.
Ans. HDFC bank participates in a variety of government-sponsored schemes as being a part of its financial inclusion programs to provides a range of benefits to the low privileged section of the society. These schemes are very useful in generating employment for the social and economic backwardness sections of the society.

At present the bank has participated in the three schemes only, these are:

1. Swarna Jayanti Shahari Rozgar Yojana (SJSRY).
2. Swarnajayanti Gram Swarozgar Yojana (SGSY).
3. Prime Minister Employment Generation Program (PMEGP).

The features of availing the loans from these schemes are as follows:

• The loan repayments are on the easy EMIs.
• The starting amount of these loans are only Rs. 5,000/- 
• These financial schemes are interlinked to government subsidies.

Q2. Explain the business loans provided by the HDFC bank?
Ans. HDFC bank provides the business loan at a low-interest rate which is very helpful in the business growth of the individual or the partners in the partnership business by providing many features and benefits. The borrower can avail many advantages of it such as it has the flexible tenures to adjust them as per the requirements, the minimal documentation is required to apply for this loan, an overdraft facility is also available with utilized loan amount along with a credit protection plan, etc. The list is endless for the HDFC business loan.

Q3. How can a person reduce its interest he pays on a loan?
Ans. A person can reduce his interest on a loan by choosing a shorter tenure period as the EMI a person pays shall be marginally higher. Therefore, it will be significant to overcome the EMIs amount of the loan.

Q4. What happened if the borrower doesn’t pay his EMI?
Ans. If the borrower won’t pay his EMI, then he will be issued a warning first by the financial institution and if in case the process shall be repeated in future again then as a penalty the borrower might be tagged as a defaulter in the defaulter list.

Q5. Which bank provides the best and easy business loan?
Ans. HDFC bank is ideal for fast approval, easy to apply, and best business loan.