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SME & COMMERCIAL LOANS

Business Loans are loans without security which are taken to serve specific purposes such as business expansion, buying new plant or machinery, raw material purchase, etc. The terms of such loans usually depend upon the borrower’s profile. A Loan for Small Business would be structured differently when compared to a loan for larger entities.

At Hero FinCorp we offer Small Business Loan in India at attractive terms and our business loan interest rate or commercial loan interest rates are highly competitive.

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 SME & Commercial loan offerings for small, medium and large enterprises are highly flexible. Our Loan for Small Business India or Small Business Finance India solutions are the preferred choice for enterprises as we offer a host of benefits:

    Quick & Hassle free approvals

    Low interest rates

    Easy Documentation

    Flexible Repayment Tenure

    Prompt Customer Service

    Fair & Transparent Services

  • acquisition finance
  • Bill Discounting / Invoice Discounting / Purchase Invoice Finance

    Sales Bill Discounting - Immediate payment of receivables at discounted prices.

    Purchase Invoice Finance - Quick disbursal, short term loans to finance purchases.

    These products offer liquidity to small, medium and large businesses. Key features include:

    Collateral not required for highly rated entities

    Loan Tenor of up to 120 days/ 4 months

    Low & attractive interest rates, starting from 10%

  • Working Capital Term Loans

    We offer both secured and unsecured Working Capital Term Loans to meet the operating expenditure of your company. We provide:

    Up to 90% LTV against Security/ Collateral provided

    Loan tenure of up to 3 years

    Low and attractive rate of interest

  • corporate loan
  • corporate loan
  • Working Capital Demand Loans

    Working Capital Demand Loans or Revolving Working Capital Loans are offered to finance the day- to-day operations of a company.

    This product is highly flexible and dynamic to suit the unique cash flow patterns of your business. It offers the following features:

    No pre-payment penalty

    Interest payable only on the utilized amount

    Completely online portal based service

    Up to 90% LTV against Security/ Collateral provided

    Loan tenure of up to 1 year, with a provision for renewal

    Low and attractive rate of interest

  • Secured Term Loan

    We offer financing for both Capital and Operating Expenditure. Our Secured Term Loans are long term financing solutions, which can be used for any Commercial or Business related expense. These loans are ideal for funding purchase of land or building, construction activities, plant and machinery (new or used), etc. Key Features:

    Long tenure up to 7 years

    Balance Transfer (BT) facility available

    High LTV of up to 90% against Security/ Collateral provided

    Suitable for Small, Medium and Large business enterprises

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

  • term loan
  • project finance
  • Project & Acquisition Finance

    Hero FinCorp’s Project & Acquisition Financing Solutions cater to the funding needs pertaining to:

    Special Projects

    Strategic Buyouts

    Purchase or Setup of new business units and others

    For this type of financing, the parameters considered are: Total Cost, Means of Finance, Timelines, Cash Flows, Repayment Structure, etc.

  • Medical Equipment Financing

    New & refurbished medical equipment financing for hospitals, nursing homes, diagnostic centers & doctors

    Interest Rates starting @ 11%*

    Loans from INR 10 Lacs

    Tenure up to 7 years

    No Collateral Required*

    Equipment Financed – CT/ MRI Scanner, Cath-Lab, Ultrasound/ Color Doppler, X-Ray Machine, C-Arms, Dental Chairs and many others

    *T&Cs apply

    KNOW MORE
  • Medical Equipment Financing
  • MACHINERY LOAN
  • MACHINERY LOAN

    Small & Medium Enterprises (SME) which are operating manufacturing units, can increase focus on growing and expanding their businesses, by availing our Machinery Loans for purchase of new or refurbished machinery from manufacturers and/ or authorized dealers/ sellers.

    High LTV of up to 75%

    Flexible Tenure of up to 7 years

    Purchase New or Refurbished Machinery

    Flexible schemes to suit your unique operating environment

    Quick processing and hassle-free experience

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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 1800-102-4145 or write to us at Customer.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 financing 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 commercial loan 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. 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. 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, you can provide land, building, equipment, deposit certificates, fixed deposits, NSC, gold, life insurance policies and so on.

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