Term Loans

Features of Term Loans

Loan Perks

Flexible Repayment Tenure

  • Align your repayment schedule with your cash flow.

Easy Accessibility

Short-term Financing

  • Obtain short-term financing solutions that meet your requirements.

Cost-effective Financing

  • Benefit from personalised, affordable credit options on term loans.
Repayment

Loan Details

Purpose of Loan Funds

  • Use term loans to support business growth, manage cash flow, finance capital expenditures, and purchase fixed assets.

Repayment Period

  • Take advantage of a repayment period of up to five years.
Easy Accessibility

Most Important Terms & Conditions

  • *The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose. 
Cost-effective Financing

More about Term Loan

Use of loan funds alternatives

Utilise Term Loans for business growth, managing cash flow, financing capital expenditures, and acquiring fixed assets.

Tenure alternatives

Enjoy a flexible loan repayment term extending up to five years.

Repayment

Structure repayments to align with your cash flow cycle.

Short-term products

Choose short-term financing solutions tailored to meet your specific needs.

Low-cost financing

Take advantage of affordable, customised credit options available for Term Loans.

Business Expansion

Business Loans provide the capital for expansion projects, including opening new locations, entering new markets, or scaling operations.

Improved Cash Flow

Loans help maintain smooth cash flow, ensuring your business can cover daily expenses, manage inventory, and handle unexpected costs without disruption.

Access to Larger Funds

Business Loans offer access to significant amounts of money compared to Personal Loans or Credit Cards, making it easier to fund large projects.

Build Business Credit

Successfully repaying a Business Loan can improve your business credit score, making it easier to secure future financing on favourable terms.

Flexible Terms

Most Business Loans come with flexible repayment terms, allowing businesses to choose a repayment schedule that aligns with their cash flow and financial planning.

Retain Ownership

Unlike equity financing, Business Loans do not require you to give up a stake in your company. You continue to retain full ownership and control over your business.

Customised Solutions

Lenders offer various loan products tailored to specific business needs, such as Term Loans, lines of credit, and equipment financing, providing targeted solutions for different financial requirements.

Equipment and Technology Upgrades

Business Loans can be used to purchase new equipment or to upgrade technology, enhancing productivity and keeping the business competitive.

Improved Business Opportunities

Access to funds enables businesses to take advantage of opportunities quickly, such as purchasing bulk inventory at a discount or investing in timely marketing campaigns.

Tax Benefits

Interest paid on Business Loans is often tax-deductible, reducing the overall cost of borrowing and providing significant tax savings.

HDFC Bank term loans have charges including processing fees, prepayment penalties, late payment fees, and documentation charges. Fees vary by loan type and amount. Check specific loan details for accurate charges.

You can apply for a term loan by taking the following steps on our website: SME-> BORROW-> For Business Expansion-> Business Loan-> Term Loan. 

Frequently Asked Questions

The maximum amount you can get with your MSME Term Loan depends on your business revenue stream and creditworthiness.

Depending on the amount required/loaned, and the specific eligibility and circumstances of the borrower, the loan can be availed with or without collateral, upon the discretion of the bank. 

A Term Loan for a business enterprise is a type of financing facility offered by HDFC Bank, wherein a company can borrows a specific amount of money and repay it over a set tenure with regular payments. It is typically used for substantial investments, such as purchasing business equipment, expanding operations,  funding capital expenditures, etc.

Different types of businesses can apply for a term lending loan, including Small and Medium-Sized Enterprises (SMEs), large corporations, and established businesses across manufacturing, retail, healthcare, technology, and services. These loans can help companies support their growth, expansion, and significant capital investment plans.

You may incur late fees and interest charges if you miss a payment on your Business Term Loan. Continuous missed payments can damage your credit score, increase loan costs, and risk loan default. The lender might also take legal action.

You can typically get a Bank Term Loan for a maximum tenure of 5 years.

 

Yes, startups can obtain a Term Business Loan.

The turnaround time for term credit approval depends on your eligibility and the documents you have provided; if everything is in order, you can expect approval within a few hours to a couple of days.