Business Loan Interest Rates,
Fees & Charges (February 2026)
Business Loan
| Fee/Charge Type | Charges |
|---|---|
Rack Interest Rate Range |
Minimum 10.75% and maximum 22.50% |
Loan processing charges |
Up to 2.00%* of the loan amount |
Premature Closure Charges (Part / Full Repayment) |
Term Loan Upto 24 EMI- 4% of principal outstanding, Post 24-36 EMI - 3% of principal outstanding, >36 EMI- 2% of principal outstanding In case of BL/SEP, Part prepayment would be allowed post servicing of 1st EMI, up to 25% of Principal Outstanding. It is allowed only once in the financial year and twice during the entire loan tenure. Charges would be applicable as above on the part pre-payment amount. NIL Premature Closure Charges for Fixed rate loan facility up to ₹ 50 Lakh availed by Micro & Small Enterprises. Government Taxes and other levies as applicable shall be charged additionally to the Borrower. |
Loan Closure Letter |
NIL |
Duplicate Loan Closure Letter |
NIL |
Solvency Certificate |
Not applicable |
Interest on unpaid instalment |
Interest will be charged on unpaid EMI for the number of days EMI is late. This interest is calculated @ loan’s contracted rate and will be added to next EMI. |
Charges for changing from fixed to 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 interest |
Not 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 interest |
Not applicable |
Stamp Duty and other statutory charges |
As per applicable laws of the state |
Credit assessment charges |
Not applicable |
Non- standard repayment charges |
Not applicable |
Repayment mode change charges* |
₹500 |
Amortisation Schedule Charges |
₹50 per schedule for physical copy. Customers can also download from the website free of cost.
₹450 Per Instance |
Legal, Repossession & Incidental charges |
At actuals |
Loan cancellation Charges and Rebooking Charges |
Loan cancellation Charges: Loan cancellation is allowed within the cooling off/look-up period from the loan disbursement date. In the event of loan cancellation, interest charged from the date of disbursement till the date of loan cancellation will be borne by the customer. Processing Fee, Stamp duty, other statutory charges and GST are non-refundable charges and would not be waived/refunded in case of loan cancellation. Rebooking Charges* :- ₹1000 plus applicable government taxes |
Charges Post Loan Disbursement
| Fee | Charges |
|---|---|
Charges for changing from fixed to 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 interest |
Not 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 interest |
Not applicable |
Stamp Duty and other statutory charges |
As per applicable laws of the state |
Credit assessment charges |
Not applicable |
Non- standard repayment charges |
Not applicable |
Repayment mode change charges* |
₹500 |
Amortisation Schedule Charges / Repayment Schedule Charges* |
₹50 per schedule for physical copy. Customers can also download from the website free of cost. |
Payment Return Charges* |
₹450 Per Instance |
Legal/Incidental Charges |
At actuals |
Loan cancellation Charges and Rebooking Charges |
Loan cancellation Charges: Loan cancellation is allowed within the cooling off/look-up period from the loan disbursement date. In the event of loan cancellation, interest charged from the date of disbursement till the date of loan cancellation will be borne by the customer. Processing Fee, Stamp duty, other statutory charges and GST are non-refundable charges and would not be waived/refunded in case of loan cancellation. Rebooking Charges :- ₹1000 plus applicable government taxes |
Rates Offered to Customer During the Period of Oct 2025 to Dec 2025 Interest Type - Fixed
| IRR | Q3(2025-26) |
|---|---|
Min IRR |
9.50% |
Min IRR |
21.03% |
Avg IRR |
16.77% |
Annual Percentage Rate Offered To Customer During Of Oct 2025 to Dec 2025
| APR | Q3(2025-26) |
|---|---|
Min APR |
9.52% |
Max APR |
26.61% |
Avg APR |
17.40% |
Business Loan Dropline Overdraft
1 |
Processing fee/Loan processing charge |
Up to 2%* of the Loan Amount * NIL Processing Fees for loan facility up to ₹ 5 Lakh availed by Micro & Small Enterprises subject to URC submission prior to disbursal |
2 |
Stamp Duty and Other Statutory Charges |
As per actuals which are applicable in laws of the state |
3 |
Legal, Repossession & Incidental charges |
At actuals |
4 |
Interest applicable on amount utilised over operating limit in DOD/OD |
24% per annum on the amount utilized above the available credit limit for DOD |
5 |
Premature Closure Charges Post Cooling off/look-up Period of three days from the overdraft limit set / disbursed date |
DOD Facility 0-24 months - 4% of existing operating limit 25-36 months - 3% of existing operating limit, >36 months - 2% of existing operating limit Government Taxes and other levies as applicable shall be charged additionally to the Borrower. NIL Premature Closure Charges for Fixed rate loan facility up to ₹ 50 Lakh availed by Micro & Small Enterprises |
6 |
Overdraft Limit Cancellation |
Overdraft limit cancellation is allowed within the cooling off/look-up period of three days from the overdraft limit set/ disbursed date. In the event of overdraft limit cancellation, interest will be borne by the customer on the withdrawn / utilised limit. Processing Fee, Stamp duty , other statutory charges and GST are non-refundable charges and would not be waived/refunded in case of limit cancellation. |
7 |
Overdraft Statement / Repayment Schedule Charges (per statement) |
₹500 |
8 |
Under-utilisation/ Commitment Charges |
If average quarterly utilisation < 30 % charges of 0.10% will be charged on the difference between the actual utilisation and expected average utilisation of 30%. Charges to be levied quarterly. Minimum charges levied would be ₹5000 |
9 |
Non-utilization charges for overdraft facility / Commitment charges |
Minimum Utilisation expected: - 30% of limit Non- Utilisation Charges: - 0.10% will be charged on the difference between the actual average utilization and expected average utilization of 30%. Charges to be levied quarterly. Maximum charges levied would be ₹ 5000/- |
i) NIL Processing Fees for loan facility up to ₹5 lakh availed by Micro and Small Enterprises subject to Udhyam Registration Certificate submission prior to disbursal ii)10% discount to senior citizens on all the charges. iii) *All the above service charges/fees/Commissions are exclusive of taxes. iv) Senior Citizen Customers are eligible for discount of 10% on all service charges v) NIL Pre mature closure charges/foreclosure/prepayment charges for fixed rate loan facility up to ₹ 50 lakh availed by Micro & Small Enterprises. vi) NIL Processsing Fees and Loan related Adhoc Charges for priority sector loans up to Rs. 50,000/- |
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Note
- Government Taxes and other levies as applicable will be charged over and above the Fees and Charges
- Loan at the sole discretion of HDFC Bank Ltd.
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Disclaimer: Terms and conditions apply. Business Loan approvals are at the sole discretion of HDFC Bank Limited and are subject to documentation and verification as per the Bank's requirements. Interest rates are subject to change. Please check with your RM or the closest bank branch for current interest rates.
Frequently Asked Questions
The interest rate for HDFC Bank’s Business Loans typically ranges from 10.75% to 22.50% per annum.
Yes, foreclosure charges are applicable after the cooling period:
Up to 24 EMI repayments: 4% of principal outstanding
Post 24 EMI and up to 36 EMI repayments: 3% of principal outstanding
Post 36 EMI repayments: 2% of principal outstanding
No charges for fixed-rate loans up to ₹50 lakh for Micro & Small Enterprises, closure from own source, and with Udyam Registration Certificate.
HDFC Bank offers Business Loans with fixed interest rates ranging from 10.75% to 22.50% per annum. These interest rate of a Business Loan remain consistent throughout the loan tenure, providing predictability for your monthly payments.
If you delay your EMI payment, HDFC Bank will charge interest at the loan’s contracted rate for each delayed day. This additional interest is added to your next EMI. For example, a 15-day delay results in 15 days' worth of interest being charged and included in the following EMI.
Yes, if you are a micro or small enterprise and avail a loan up to ₹5 lakh from HDFC Bank, you will receive a NIL processing fee benefit, provided you submit the Udyam Registration Certificate before disbursal. Otherwise, processing fees may be up to 2% of the sanctioned loan amount.
You can part-prepay the HDFC Bank Business Loan after completing one EMI. It is allowed up to 25% of the principal outstanding, only once per financial year and twice during the loan tenure. Standard prepayment charges apply based on completed tenure and amount paid off.
If a payment return occurs in your HDFC Bank Business Loan account, you will be charged ₹450 per instance. This charge is applicable regardless of the reason for the bounce and is in addition to any other interest or penalty levied for late or missed payments.
If you miss your EMI due date, HDFC Bank charges 1.50% per month (equivalent to 18% per annum) on the overdue amount. This charge becomes applicable after a 7-day grace period and includes additional government taxes as applicable on the penalty amount.
HDFC Bank does not charge cancellation fees for Business Loan. However, you will need to pay interest for the interim period between disbursal and cancellation. Processing fees, stamp duty, and GST are non-refundable. Rebooking the loan will attract a ₹1,000 rebooking charge.
For Dropline Overdraft, if your average utilisation is below 30% of the sanctioned limit, HDFC Bank charges 0.10% on the shortfall. This fee is calculated quarterly; the maximum charge applicable is ₹5,000 per quarter. These charges ensure optimal usage of the approved limit.
HDFC Bank offers a 10% discount on all service charges to senior citizen customers availing Business Loan. This concession is applicable across applicable service charges, providing financial relief for eligible customers. It does not apply to principal, interest, or government taxes and levies.
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