HDFC Bank - 8.25% for Banking Services - MSME & SME (OD/CC) Loan
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Last updated: 19 Sep 2025, 01:51 PM
HDFC Bank MSME & SME Overdraft (OD)/Cash Credit (CC) Loan: Seamless Working Capital for Growth
HDFC Bank Limited, one of India’s leading private sector banks headquartered in Mumbai, provides Overdraft (OD) and Cash Credit (CC) facilities under its comprehensive MSME and SME business loans portfolio. These revolving credit lines offer flexible working capital support for Micro, Small, and Medium Enterprises (MSMEs/SMEs), allowing withdrawals up to a sanctioned limit with interest charged only on the utilized amount—perfect for handling inventory, receivables, salaries, or seasonal cash flows.
In-Depth Details
Key Highlights
- Products Offered:
- Working Capital Loans (CC/OD): Unsecured or secured options for daily operations, including Dropline Overdraft (₹5-15 lakh), Merchant Overdraft, and GST Overdraft; tailored for MSMEs with turnover up to ₹7.5 crore.
- Special Schemes: Dukandar Overdraft Facility (up to ₹10 lakh for retailers/kirana stores), Xpress GST Overdraft, Overdraft Against Property/FD, and collateral-free facilities under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) up to ₹2 crore; integrated with PMMY (Pradhan Mantri Mudra Yojana) and other government schemes.
- Loan Amount: ₹50,000 to ₹5 crore (collateral-free up to ₹2 crore under CGTMSE); higher limits (up to ₹25 crore) for secured SME facilities based on turnover and financials.
- Tenure: Revolving (1-3 years, renewable annually); flexible repayment aligned with cash flows; moratorium up to 6 months for eligible units.
- Interest Rates (as of September 2025): Starting from 8.25% p.a. (linked to Repo Rate + spread, up to 12-18% based on risk profile, credit score, and collateral); concessions of 0.25-1% for women entrepreneurs, priority sectors, or high CIBIL scores; as low as 50 paise per day for ₹1,000 on Dukandar OD.
- Eligibility Criteria:
- Business vintage: Minimum 1-3 years.
- Annual turnover: ₹10 lakh to ₹7.5 crore (extendable beyond for priority sector MSMEs; Udyam classification: Micro <₹5 crore, Small <₹50 crore, Medium <₹250 crore).
- Credit score: CIBIL 700+ preferred; positive cash flow and Udyam registration required.
- Sectors: Manufacturing, trading (e.g., retail, agri), services (excluding speculation); priority for SC/ST, women-led, or rural businesses.
- Collateral: Optional (CGTMSE covers 75-85% for loans up to ₹2 crore); accepts property, FDs, or receivables.
- Features & Benefits:
- Interest only on drawn amount for cost efficiency.
- Quick drawdown via cheques, ECS, or digital modes; speedy approvals (as fast as 59 minutes under MSME Loan in 59 Minutes).
- Digital application and tracking via HDFC Business Banking app/NetBanking; no processing fees for small loans (<₹1 lakh).
- Additional perks: GST-based invoice financing, forex support, and composite limits with term loans; easy access for shopkeepers/retailers.
- Required Documents:
- KYC: PAN, Aadhaar, address proof.
- Business: Udyam certificate, GST returns/ITR (last 2 years), profit & loss/balance sheets.
- Financials: Bank statements (6-12 months), projected cash flows/business plan.
- Collateral (if applicable): Property/FD valuation documents; proof of age for proprietors/directors.
