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SME & COMMERCIAL LOANS

Now, with our SME finance options, you will not miss any growth opportunity for your business. Whether its working capital requirement or product line expansion, Hero FinCorp SME Finance assists you to grab business opportunities at the right moment. Hero FinCorp understands the requirements of hassle-free, easy and fast small business financing for seamless business success.
That’s why we bring you SME & commercial loans which will assist you in purchasing new equipment, expanding your business, embracing new technology upgradation & fulfilling urgent working capital requirements.

Eligibility & Documentation

Eligibility

  • Public, Private, Proprietorship or Self-employed
  • Minimum 3 years in current business
  • Business profitability as per industry norms
  • Satisfactory credit score

Documentation

  • Last 3 years audited financial statements and projections
  • Profiles and KYC of Directors and Partners
  • Company constitution documents and registration certificates
  • Why choose Hero FinCorp’s SME & Commercial Loans

    Hero FinCorp’s customizable Small Business Financing options are tailor-made to suit the needs of companies of all sizes and boost your competitive edge. Their many benefits include:

    Affordable SME Loan Interest Rates – Hero FinCorp provides SME and Commercial Loans at a very affordable interest rate which becomes more lucrative when your credit score is high and business has profitable financials with high-valued collateral.

    Easy Documentation and Quick Approval – Documents required for SME loans are minimal and quick approval is provided with satisfactory loan applications.

    Repayment Flexibility – To ensure maximum convenience, Hero FinCorp gives you facility to choose a SME business loan repayment plan as per your cash-flow cycle.

    Proactive Customer Service and Transparency – We believe in providing a seamless customer experience that is why we ensure help at every step of the commercial loan application process.

  • acquisition finance
  • BILL DISCOUNTING OR INVOICE DISCOUNTING OR PURCHASE INVOICING FINANCE

    Invoice or bill discounting is essentially a loan against payments receivable. Now, move your business on the fast track with Hero FinCorp bill discounting finance to fulfil your immediate cash requirements. Hero FinCorp offers Invoice Discounting or Purchase Invoicing Finance at very attractive and low interest rate.
    Benefits include:

    Quick disbursal and immediate liquidity for businesses of all sizes

    Loan tenure of up to 120 days / 4 months

    Collateral not required for highly rated entities

    KNOW MORE
  • Working Capital Loan

    Business of all sizes need enough cash in hand to fund their daily operations. And this is where a working capital term loan comes in handy. These working capital term loans with lower interest rates are lucrative and perfectly meet short term business needs like wages, accounts payable, new project activities, etc. Hero FinCorp offers both secured and unsecured forms of this loan.
    Benefits of a working capital term loan are:

    Flexible tenure of 3 years and interest rate between 11% and 14%

    High LTV ratio of 75% to 80% and maximum loan amount can go up to Rs. 5 crores

    Faster loan approvals and disbursement on fulfilment of required documents

    KNOW MORE
  • corporate loan
  • term loan
  • Secured Term Loan

    Secured term loans fulfill the long term financial requirements of the business for capital or operational expenditure. Hero FinCorp understands the long term financing needs of business and provides secured term loan with long repayment tenure. A secured term loan is suitable for businesses of all sizes and can be used to purchase new plants, machinery, land, etc.

    High LTV of up to 90% against Security/ Collateral provided with tenure up to 7 years

    Secured term loan up to Rs. 7 crores with interest rate between 11% to 14%

    Balance Transfer (BT) facility available

    Wide range of collateral accepted, including land, building, plant/ machinery, bank guarantee, FDR’s, and more.

  • Project & Acquisition Finance

    If you are planning to buy out another business, special project, purchase new business units or even set up new ones, Hero FinCorp helps provide you the capital required through project and acquisition financing. The loan process becomes faster if the business to be acquired features substantial profits, valuable assets or a steady revenue stream.

    Project and Acquisition financing at reasonable interest rates helps small companies achieve economies of scale

    This loan is ideal for expanding operations and size of your business

    Low down payment accepted if company to be acquired is promising

    The loan application evaluates parameters like cash flow, total cost, repayment structure and timelines

  • project finance
  • Medical Equipment Financing
  • Medical Equipment Financing

    Now deliver best in class medical facilities to your customers/patients with Hero FinCorp’s Medical Equipment Financing. At Hero FinCorp, we understand the healthcare industry needs and have come up with an easy solution to help you purchase both new and refurbished machines through medical equipment financing.

    A wide variety of machines such as X-Ray machines, Dental Chairs, Ultrasound machines, Color Doppler, C-Arms, MRI Scanners, Cath-Lab and more can be purchased.

    Loans start from Rs. 10 lacs onwards and the tenure goes up to 7 years.

    Attractive Interest rates starting from 11%*

    No Collateral (based on terms and conditions)

    *T&Cs apply

  • MACHINERY LOAN

    To grow business with a fast pace, businesses require new or refurbished machinery which can boost their operations or manufacturing. To fund such purchases easily, Hero FinCorp offers machinery loans that help businesses expand at higher rate. The benefits of machinery loans are:

    Easy documentation and quick approvals

    Higher LTV (loan to value) up to 75%

    Flexible schemes to suit your unique business operation environment

    Long and flexible tenure up to 7 years

  • MACHINERY LOAN
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    Customer Testimonials

    • Bharat Agarwal, Pune

      SME & COMMERCIAL LOANS

      My experience with HeroFinCorp has been very good, Communication with our representative & their funding department & credit department has been reliable & responsive. Their team works truly hard for meeting the timelines. I would like to make a special mention of the ease & reliability of their funding process, which is always a key of financial success for any institution. They have been a valuable partner in our journey so far and we look forward to keep working with them in future.

      Bharat Agarwal, Pune
      Promoter, Bansilal Agarwal Charitable Trust

    • Mani Mamallan, Mumbai

      SME & COMMERCIAL LOANS

      I'm impressed by the thoroughness and professionalism exhibited by the relationship team at Hero Fincorp Limited. (Read More) The best part about them is the quick turnaround time. They take a genuine interest in helping their clients achieve their goals with minimum hassles and maximum productivity. Their strong business ethics and integrity is top notch and has made our working relationship very pleasurable and efficient.

      Mani Mamallan, Mumbai
      Founder & MD, Electronic Payment & Services Pvt. Ltd.

    • Rupali Kalita, Guwahati

      SME & COMMERCIAL LOANS

      It would be worthwhile to mention that during the current fiscal year, Hero Fincorp is the only lender on-board with RGVN(NE)MFL and has consistently provided the lowest turnaround times. Although the partnership is in the initial stages, we have shared a warm relationship in our dealings with Hero FinCorp. The Relationship Manager was always on his toes, enabling us to complete the transactions at lightning speed and in a systematic manner. The term loan assistance received from HFCL definitely contributes towards the noble cause of serving the poor and needy of the Northeast India where our organization works.

      Rupali Kalita, Guwahati
      CEO, RGVN (North-East) MicroFinance Ltd.

    • Boman J. Yezdani, Mumbai

      SME & COMMERCIAL LOANS

      It has been an absolute pleasure working with the Hero FinCorp team. They combine a strong understanding of credit and risk, with a pragmatic and practical view on structuring solutions which are a win-win for all parties involved. The team has consistently delivered what they have promised to clients, within committed timelines. We at RentAsset look forward to a long association with HFCL.

      Boman J. Yezdani, Mumbai
      Promoter, RentAsset Initiatives Pvt. Ltd.

    • Krishnan Narayanan, Chennai

      SME & COMMERCIAL LOANS

      I would like to mention that overall it has been a great experience working with HFCL, and we had in-depth, challenging and very positive discussions with them and their seniors from HO. We have created a fundamentally strong business relationship and are now moving forward. The loan process was very fast, beating all other competing banks. Our major purpose of approaching HFCL was the speed of sanctioning, which was achieved. We've been able to quickly move forward on project implementation. Thanks for the association and we are looking forward to a continued long term association with Hero FinCorp.

      Krishnan Narayanan, Chennai
      CFO, Malladi Drugs & Pharmaceutical Ltd.

    • Deepak Shinde, Pune

      SME & COMMERCIAL LOANS

      We are very delighted to have HFCL as the financial partner, the loan structure provided by HFCL is very attractive compare to any other private financers/NBFSs. After availing the facility from HFCL, we have been able to reduce our monthly obligations which in result has given us the space to plan for existing & upcoming projects. Overall time processing is commendable. Documentation part was also standard & we found very transparent deals from HFCL. We were very happy & surprised to see that HFCL team came to meet us on a regular basis even after disbursement (Very Rare in the industry). Team members of HFCL are also very friendly & co-operative. We will always like to be associated with HFCL. All the very best for HFCL & their team............

      Deepak Shinde, Pune
      Promoter, Proto D Engineering Pvt. Ltd.

    • Udaya Kumar, Banagalore

      SME & COMMERCIAL LOANS

      Grameen Koota Financial Services Pvt. Ltd., (Grameen Koota-GK) – an NBFC-MFI, based in Bangalore, accesses funds in its endeavor to reach its Mission to be a sustainable, friendly and trusted provider of affordable and need-based services to the poor and low-income families. Grameen Koota constantly works to expand its lender resource base every year and Hero Fincorp Ltd., (HFCL) has joined GK as its newest lending partner in March 2015. HFCL, through its term loan support of Rs.15 crore to GK has qualitatively commenced its contribution towards enabling GK in achieving its vision to bring economic and social change in poor and low income households through financial products and development services. HFCL’s support has directly reached out to around 14,000 women client households spread across the States of Karnataka and Maharashtra. GK immensely values the commencement of this partnership with HFCL and looks forward to strengthening of this relationship.

      Udaya Kumar, Banagalore
      CEO, Grameen Koota Financial Services Pvt. Ltd.

    • Pankaj Sachdeva, Delhi

      SME & COMMERCIAL LOANS

      The Feedback Infra Group has enjoyed a long and healthy relationship with Hero FinCorp (including its earlier avatars). The relationship recently got further strengthened with limits being extended to one of the Subsidiaries as well. We have been impressed with the pace of responsiveness, warm treatment and quick decision making at Hero FinCorp. There has been a sharp understanding of our business and its requirements which resulted in working capital support to the Group. This support would enable the Group to grow and diversify in its business operations both in India and abroad. Another key feature in the relationship with Hero FinCorp has been the ease with which the transaction was executed, a knowledgeable and friendly Relationship Manager who was steadfast through the entire process and ensured that all time commitments were honored and the requirement of documentation was kept to a minimum without compromising on the fundamentals of the transaction. We certainly look forward to a long and healthy relationship in the times ahead.

      Pankaj Sachdeva, Delhi
      Group CFO, Feedback Infra Pvt Ltd

    • Rohan Shah, Ahmedabad

      SME & COMMERCIAL LOANS

      We started our relationship journey with Hero-Fincorp since April 2015 and since then we have found no issues while working with them. Their quick decision making, easy and hassle free disbursements and minimal paper-work has made our work much easier. Our relation with HFCL has helped us procure additional businesses with our clients which we were unable to cater earlier due to blockage of funds. Also HFCL representative Mr. Vipul Raj Yadav has always been very helpful. We wish good luck to HFCL and hope to increase volumes with them in the near future.

      Rohan Shah, Ahmedabad
      Promoter, Sakar Industries Ltd.

    • Sunil Aggarwal, Delhi

      SME & COMMERCIAL LOANS

      We are quite satisfied with the services of HFCL, especially the solution based approach of the organization which has strengthened our relationship Our relationship manager had a clear, in-depth understanding of our needs and ably helped us at every juncture. The processes are fast and smooth, meeting all the timelines which were committed to us. We are definitely looking forward to continue the strong business relationship with HFCL in future.

      Sunil Aggarwal, Delhi
      Promoter, Shree Balaji Alumincast Pvt. Ltd.

    • Jugal Kataria, Delhi

      SME & COMMERCIAL LOANS

      Our recent association with HFCL has left us very impressed with the professional approach of their team. They spent time to understand our business model and funding needs and offered funding on terms which were mutually acceptable as well as commercially viable. This helped us close the transaction within the shortest possible time. We would also like to credit them with ensuring that the documentation was not complex/complicated. HFCL’s service delivery is extremely flexible and offers a level of customer service which is par-excellence. This makes the entire experience of working with them quite wonderful. We look forward to a long standing and mutually beneficial association with HFCL. We wish HFCL and its team all the success.

      Jugal Kataria, Delhi
      CFO, Satin Creditcare Network Ltd.

    FREQUENTLY ASKED QUESTIONS (FAQS)

    Q1. What is an SME Loan or SME Finance?

    SME loans are specially designed loans for SME’s and small businesses. They are designed to be in sync with the unique requirements and operating constraints which small businesses encounter during various phases of their business.

    Q2. Can moratorium period be allowed under this scheme?

    Yes, moratorium period is allowed under this scheme, though the maximum period should not exceed 96 months.

    Q3. What is Loan-to-Value or LTV Ratio?

    LTV or Loan to Value ratio, is ratio of the loan amount to the realizable value of the underlying asset or security.

    Q4. Is there any pre-payment penalty?

    Yes. A small percentage of limit will be charged as pre-payment penalty.

    Q5. What is ECS?

    ECS stands for Electronic Clearance Service, and it is used to electronically transfer money between bank accounts, and is commonly used for making monthly EMI payments.

    Q6. What is the usual repayment method for these loans?

    The usual repayment methods include PDC, ECS, and more.

    Q7. For what purposes can these loans be taken?

    These loans are available for buildup of current assets, fixed assets, capacity expansion, modernization and short term working capital including shoring up of net working capital.

    Q8. Are balance transfer or loan BT cases considered?

    Yes. Loans can be availed through transferring an existing loan from other banks, NBFCs or financial institutions.

    Q9. What is the range of tenor available with these loans?

    You can avail this loan for a period starting from 12 to 84 months or 1 to 7 years.

    Q10. Are there any Foreclosure and Part/ Pre-payment charges?

    We offer pre and part payment facility at a very nominal charges. The amount charged may vary by sub-product and/ or location.

    Q11. What are the typical business requirements for which business loans are given out?

    Typical business requirements include new product launch, warehousing needs, expansion to new locations, entering new product categories, hiring new employees, marketing and many more such business related needs.

    Q12. How to get financing / business loans for a small business?

    Hero FinCorp provides loans to address the financing requirements of SMEs. We help SMEs with financing solutions which are user-friendly and can be adapted to the unique needs and requirements of SMEs & Small Businesses operating in India.

    Q13. What are the documents required to avail a commercial loan?

    The documentation requirement for availing corporate loans or loans for commercial purposes, vary by product, location and entity type.

    Q14. How should you prepare to get a small business loan quickly?

    The loan application process can be a lot simpler if one keeps the following in mind: 1. Update your financial records, 2. Know the value of your assets, and 3. Keep your banking/ financial statements handy.

    Q15. What is a Machine Term Loan?

    These are loans which help businesses acquire machinery & equipment for starting and/ or expanding a business or industrial unit.

    Q16. How do I reach out to Hero FinCorp for a loan?

    Fill in our Apply Now form on our website followed which we will get in touch with you or you can also call us on 1800-103-5271 or write to us at corporate.care@herofincorp.com.

    Q17. How much loan can I avail? How is the amount decided?

    The maximum eligible loan amount is decided based on your requirement, credit assessment, industry outlook, past performance and expected future cash flows.

    Q18. Which bills are accepted for discounting?

    Sales bills which are billed to reputed OEMs and companies are accepted for discounting.

    Q19. What can be accepted as security/ collateral?

    A wide range of securities are accepted. The includes properties such as land & real estate; equipment such as plant & machinery; Fixed Deposits, Deposit Certificates, Kisan Vikas Patra, National Savings Certificates, securities issued by Central and State Governments, gold and other cash equivalents; life insurance policies; and others. Please note the applicability of the above depends upon the overall assessment of the borrower.

    Q20. How long does it take to get the loan?

    It takes 10-15 working days to process the loan provided everything is in order.

    Q21. Typically, how is working capital finance structured at Hero FinCorp?

    At Hero FinCorp, working capital loans are tailored to suit the requirements of our clients, we offer various instruments individually or in combination with other products to best suit customer needs.

    Q22. How is Acquisition Financing done?

    There are various choices available for companies who are looking for acquisition financing. A line of credit or traditional loans are two common choices. Low rates for acquisition financing can help smaller companies reach economies of scale and is an effective method for increasing the size of the company's operations.

    Q23. For what tenors does Hero FinCorp extend working capital finance?

    Depending upon various facilities working capital finance is extended for tenors up to one year. Ad hoc requirements are also considered.

    Q24. Who should I contact in case of any problem or if I have a query?

    We have dedicated Relationship Managers for all corporate clients. You can get in touch with them if you have any queries about our products, services or in case of any issues regarding our loan application or approval process. Also, you can use the customer care section of this website to raise any query.

    Q25. Is there any impact on my credit score if I foreclose my loan?

    No, foreclosure of your loan will have no impact on your credit score. Once the loan is foreclosed the same will be reported to credit rating agency as closed.

    Q26. What is Project Financing?

    Project Finance is a method in which the lender looks essentially to the revenues generated by a single project, it can be both for repayment or a as security for the exposure. Project financing is usually for large, and expensive installations that could include, for example, power plants, chemical processing plants, mines, transportation infrastructure, and telecommunications infrastructure.

    Q27. What are the typical characteristics of Infrastructure Projects?

    Few typical characteristics of Infrastructure Projects are:

    • Large capital costs
    • Long gestation periods
    • Tariffs are politically sensitive
    • Vulnerable to regulatory policies
    • Revenues is only in the local currency
    • Assets cannot be transferred easily
    • Tradable services are not provided
    • Social aspects involved

    Q28. What is Acquisition Financing?

    Acquisition Financing is the capital that is financed to acquire/ buy another business. Acquisition financing provides funds to the user to help acquisition aspirations by providing the resources required to complete the transaction.

    Avail from our wide variety of small business loans or SME finance options that include bill discounting, invoice discounting, working capital loan, machinery loan and project and acquisition financing. You can benefit from comfortable tenures, attractive business loans interest rates or SME loan interest rates, high loan-to-value or LTV ratio, fast approvals, proactive customer service, easy documentation, and transparent service. As far as eligibility for invoice discounting, working capital loans and machinery loans is concerned, your business must be public, private, proprietorship or you must be self-employed. You should have been in your present business for at least 3 years and have a satisfactory credit score. To avail small business loan in India, your business should also be profitable as per industry standards. The documents you need to submit include KYC and profiles of partners and directors, registration certificates as well as company constitution papers. You will also need to provide audited financial statements and projections of the last 3 years for a business loan. If everything is in place, it usually takes 10 to 15 working days to process loans. The amount of invoice discounting, working capital loans or machinery loans you can receive and the business loans interest rates depends on the assessment of your company and credit, and your need. As security for small business loans, you can provide land, building, equipment, deposit certificates, fixed deposits, NSC, gold, life insurance policies and so on.

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