HSBC Business Loan

In this current economy where unemployment is soaring high and companies are turning bankrupt, starting your own business may seem like a challenge. However, if you have decided to start your own business or are looking to expand a business, then don’t look back. Business loans such as HSBC business loans are here to help you achieve your business goals.

The Hong Kong and Shanghai Banking Corporation (HSBC) Limited was first incorporated in 1865 in Hong Kong and Shanghai. As one of the largest banking and financial services companies in the world, HSBC is spread across the world with over 6000 offices in 80 countries. HSBC is one of the sixth largest public corporations worldwide as per Forbes magazine.

HSBC operates under four business groups: Retail Banking and Wealth Management, Global Private Banking, Global Banking and Markets and Commercial Banking. HSBC in India finds its origins dating back to 1853 when the Mercantile Bank of India was founded in Mumbai. Mercantile Bank was later bought over by HSBC in 1959 and since then has been an active international bank. HSBC India was the first bank to introduce the first ATM in India back in 1987.

Overview Of HSBC Business Loan

HSBC Business Loans helps you achieve your business goals whenever you need a financial aid. Whether you are setting up a business from scratch or looking for a business expansion, HSBC Business Loans have got it covered. HSBC provides a range of long and short-term loans that are tailored to meet your individual requirements.

Why Pick HSBC Business Loan?

HSBC is an established international financial services provider with years of expertise in credit lending solutions. Their highly expert specialists tailor business loans in a way that suits the needs of all kinds of businesses, whether big or small.

Features of HSBC Business Loan

HSBC Business Loans offer the following credit and lending offerings:

  • Business Overdrafts –A business overdraft provides you with the financial cushion when you are awaiting sales income and have to pay for stock and other bills in the meantime. You can choose a business overdraft whenever you need a short-term borrowing and need to increase your overdraft limit. You also get to increase your cash flow administration by having readily available funds that you can use. The rate of interest is calculated on only overdrawn balances and you are free to pay it any time you want. The business overdrafts are provided on an yearly basis and are also reviewed annually.
  • Revolving Loan Facility –HSBC also offers business loans with a revolving line of credit facility, also known as revolving loan. This type of business loan works just like a credit card, wherein you have a specified amount available and you do not incur any interest charges until and unless you start using from the loan amount. Revolving loan facility is great for short-term requirements.
  • Term Loans – HSBC term loans helps you borrow a lump sum amount all at once and gives you the option to pay it back in small terms (specified period of time).Term loans are easier to get if you are a tenured businessman with a stable track record. Whether you need to finance a long-term investment plan or meet certain business tasks, HSBC has some customized lending options to meet all your projects.
  • HSBC Business loan can be availed for upto Rs. 10 crores.

Benefits of Applying HSBC Business Loan on Letzbank

At Letzbank.com, you are able to compare the business loans offered by all top banks and upon careful consideration, you are also given the option of directly applying at our website to grab the offer that best suits your needs. Our online application form is simple to use and also enables you to view the Instant Quote from banks within seconds. And what’s more, all of our services are completely free of charge.

HSBC Business Loan Eligibility

HSBC business loans are provided to sole proprietors, partnerships and private limited companies. There are times when a personal guarantor is required before giving the loan and the age of the guarantor should be between 21 to 65 years. The profit margin after tax must be in a positive side.

HSBC Business Loan Documentation Process

HSBC business loan’s documentation process varies according to the business group. The common loan documents required for all business types are:

  • Audited financial records of the last three years that also lists the audited reports.
  • Income tax and sales tax returns of the last three years.
  • Duplicates of debts and creditors statement for the past three months and copy of monthly stock.
  • Last 6 months bank statement of the primary account or term loan bank statement copy.
  • Common application form completed and signed.
  • Information to be disclosed on all business entities that hold more than 10% of the stake in the company and also an undertaking duly signed.
  • Copies of all security documents such as property, title deed, etc.

Documents Required for Sole Proprietorship

Verification of Identity–Any two of the below documents can be submitted:

  • PAN ID or Income Tax Return
  • Water bill, power bill or municipal tax bill
  • MAPIN card with proprietor name

Individual identity proof for the sole proprietor- Any one of the below documents can be submitted:

  • Driving License
  • Passport
  • Voter ID
  • Pan Card
  • MAPIN Card

Address Proof– Any one of the below documents can be submitted:

  • Passport
  • Voter ID card
  • Ration Card
  • Driving License
  • Life Insurance Policy
  • Power bill
  • Society Outbound bill
  • Landline bill or post paid phone bill
  • PAN ID / PAN letter of allotment / Form 60 of the concern

Financial documents (all of the below):

  • Profit and Loss and balance sheet of last two years, which should be audited by a chartered accountant.
  • Income Tax Returns copy of the past two years.
  • Last six months of bank statements.

Documents Required for Partnership Firms

Identity Proof of partnership firm (any two out of the below list are required):

  • Sales tax, VAT or Service Tax, Excise Registration
  • Shops and Establishment Act Registration
  • PAN ID or Income Tax Return of the concern
  • Any Utility bill in the name of the concern such as water bill, municipal tax bill, etc.
  • MAPIN card in the concern’s name

Individual Identity Proof should be submitted for all partners (any one out of the below list):

  • Passport
  • Voter’s Id
  • PAN Card
  • Driving License
  • MAPIN Card

Address proof should be given for all partners (any one out of the below list):

  • Passport
  • Voter Id
  • Driving License
  • Ration Card
  • Electricity Bill
  • Landline bill or post-paid mobile phone bill
  • Life Insurance Policy
  • Society Outgoing bill
  • PAN ID / PAN allotment letter / Form 60 of the concern

Financial documents all of these:

  • Profit and Loss and balance sheet of last two years, which should be audited by a chartered accountant
  • Income Tax Returns of the past two years
  • Last 6 months’ bank statements

Documents Required for Private Limited Companies

Identity Proof of private limited company (any two out of the below list):

  • Sales tax, VAT or Service Tax, Excise Registration
  • Shops and Establishment Act Registration
  • PAN ID or Income Tax Return of the concern
  • Water, electricity or municipal tax bill of the concern
  • MAPIN card in the concern’s name

Memorandum and Articles of Association:

  • Incorporation certificate
  • Board resolution
  • Copy of annual return that establishes the shareholding pattern

Individual Identity Proof to be submitted for the authorized signatories and 2 directors one of whom should be the Managing Director (any one of these can be submitted):

  • Passport
  • Voter ID
  • PAN Card
  • Driving License
  • MAPIN Cardv
  • Director’s List
  • Form 32 copy that should be filled with ROC
  • PAN Card or PAN allotment letter or Form 60 of the concern

The below financial documents must be submitted:

  • Profit and Loss and balance sheet of last two years, which should be audited by a chartered accountant
  • Income Tax Returns of the past two years

Collateral Security Documentation – Loans upto Rs. 10 lakhs can be availed by micro and small enterprises (MSEs) without any collateral security. For the rest, house property, commercial/industrial property, DUL and other liquid assets can be submitted as a form of collateral.

HSBC Business Loan Interest Rates

HSBC Business Loan Interest Rates are calculated on basis of the prevailing base rate at the time of processing:

  • The 3-month Marginal Cost of Fund based Lending Rate (MCLR) is 8.8 % per annuals on April 1, 2016.
  • Any interest rate on floating rate loan that is disbursed on or after July 1, 2010 till March 31, 2016 would impact an interest rate that is linked to the base rate, which is 9.10% per annum.
  • Any interest rate on floating rate loan that is disbursed before July 1, 2010 would impact an interest rate that is linked to the base rate, which is 16.35% per annum.