Business Loans from HSBC Bank
Being one of the oldest multinational banks in India, HSBC Bank offers a range of finance products including loans to different segments of its customer base. The bank offers quite a few business loans, each suitable for different types of businesses.
We look at three business loans from HSBC Bank:
- Working Capital Term Loan
- Post-Shipment Finance
- Packing Credit
We give you a brief introduction to the business loans below.
HSBC Bank Working Capital Term Loan
This loan helps businesses finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. This a perfect loan scheme for businesses that need help during periods of reduced business activity or while waiting for receipt of payment after completing projects. The bank offers this as a term loan scheme to businesses.
Features of HSBC Bank Working Capital Business Loan
Why this Loan?
- The HSBC Working Capital Business Loan can be taken for all projects and activities related to running the business on a day-to-day basis
- The loan is extended as a term loan based
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
HSBC Bank Post-Shipment Finance (Business Loan)
This loan helps businesses pay for post-shipmentand other related activities. The bank also offers non-funded services to help businesses dealing in export run their operations smoothly.
Features of HSBC Bank Post-Shipment Finance
Why this Loan?
- The loan is meant for you if your business needs funds for any post-shipment activities of your export business. Please get in touch with the bank to get a list of all activities eligible for this loan
- The repayment period for the HSBC Post-Shipment Finance is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
- The security needed for this loan is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
HSBC Bank Packing Credit (Business Loan)
This loan helps businesses pay for pre-shipment and other related activities. The bank also offers non-funded services to help businesses dealing in export run their operations smoothly.
Features of HSBC Bank Packing Credit
Why this Loan?
- The loan is meant for you if your business needs funds for any pre-shipment activities of your export business. Please get in touch with the bank to get a list of all activities eligible for this loan
- The repayment period for each loan is set on a case-to-case basis depending on factors such as the nature of project, quantum of loan, repayment capacity of the borrower, etc.
- The security needed for the HSBC Packing Credit is decided based on the risk perception after checking the borrowers’ profile and other lending norms of the bank
Important Note: Even though the bank’s website has information available for a few business loan schemes at this time, there is a possibility that the bank may offer more corporate loan options which are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.
Interest Rate for HSBC Bank Business Loans
- The interest rate for the HSBC Bank business loans depends on various factors such as quantum of loan, type of business, risk rating, nature of project, repayment period, structure of debt, etc.
- The interest rate for the retail business term loan is the sum of the repo rate (5.4% in October 20 as per site) and 5.1%, which makes it 10.5%. For Overdrafts it is the sum of the 3 Month Treasury Bill interest rate (currently at 4.88% as per HSBC site) and 5.3%, which makes it 10.18%
Eligibility for HSBC Bank Business Loans
- Individuals, Proprietors, Partnership Firms, Private Limited and Public Limited Companies can apply for these loans
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/PAN Card Issue Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’sMajor Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Reference Facts
- HSBC Bank Website: www.hsbc.co.in
- Headquarters: Mumbai, Maharashtra
- Phone Number (Corporate Customers): 1800 103 2666, 1800 103 2667