HSBC Business Loan | Interest Rates | Eligibility | Documents

HSBC Business Loans: Whether you are looking to expand your business or want to meet your working capital and trade finance needs, HSBC has a wide range of business finance options. Choose from a range of options which are flexible to match most of your business needs, along with the choice of collateral, tenor and quantum of finance. Get the right funding for your business growth.

HSBC business finance solutions are currently available in the following locations: Delhi, Mumbai, Pune, Indore, Chandigarh, Ludhiana, Bangalore, Chennai, Coimbatore.

Eligibility

Business finance is offered to the following type of concerns

  • Sole Proprietorships
  • Partnerships
  • Private Limited Companies

Positive profit after tax (PAT)

Age of the guarantor (wherever personal guarantee is applicable)

  • Minimum age of the guarantor to be 21 years
  • Maximum age of the guarantor to be 65 years at the time of the loan maturity

Major features to Get HSBC Business Loans

  • Loan Amount: Upto Rs 10 Crores
  • Interest Rates: To be calculated basis the prevailing Base Rate at the time of processing.
  • Facility wise security coverage required:
SecurityFacilityNature
Primary SecurityWorking CapitalHypothecation over stocks & receivables
Term LoanHypothecation over plant & machinery or other fixed assets created out of the loan
Collateral Security (Micro and Small Enterprises (MSEs) can avail of loans upto Rs 10 lakhs without any collateral security)Working Capital and Term LoanCombination of:
– Equitable mortgage over residential, commercial or industrial property*
– Time deposits with HSBC
– SBLC
– Hold cover
– Approved debt mutual funds
Cash MarginNon Fund Based Working Capital FacilitiesLien on term deposits only
Other SecurityWorking Capital and Term LoanPersonal guarantees of promoters and undated security cheques

Common documents for loan

  • Last 3 year audited financials along with audited report (Provisional financials for the latest 12 months ended if not covered to be provided.) (Details of Investments, Loans and advances to Group companies as of last audited results).
  • Three years income tax returns
  • Three years sales tax returns
  • Copy of monthly stock, age wise book debt and creditors statement for the last 3 months
  • Copy of last 6 months bank statement of main banker / copy of bank statement for the term loan
  • Details of all business entities where either of the promoters or direct family (spouse/children) singly or jointly hold more than 10% stake and are involved in any other business
  • An undertaking duly signed by the promoters that all business entities where the promoters in their individual capacity or through their immediate relatives (spouse / children) are stake holders has been duly disclosed to HSBC
  • All copies of property documents proposed to be offered as security wherever applicable. These would include the sanctioned plan, title deed, registration receipts, Index II, Property card extracts etc.
  • Any other document as may be necessary to capture information as specified by HSBC from time to time

Documents required for sole proprietorship

Proof of identity of the sole proprietorship (any two of the following):

  • Proof of identity of the sole proprietorship OR
  • Registration under Shops and Establishment Act OR
  • PAN ID / IT return of the concern OR
  • Water / Electricity / Municipal tax bill in the name of the concern OR
  • MAPIN card in the name of the concern

Proof of individual identity to be submitted for the sole proprietor (any one of the following):

  • Passport OR
  • Voter’s identity card OR
  • Photo PAN card OR
  • Driving license OR
  • MAPIN card

Proof of residence address to be submitted for the sole Proprietor (any one of the following):

  • Passport OR
  • Voter’s identity card OR
  • Driving license OR
  • Ration card OR
  • Society outgoing bill OR
  • Life Insurance Policy OR
  • Electricity bill OR
  • Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

  • P & L and balance sheet for last two years audited by a C.A. AND
  • Copies of IT returns for the last two years AND
  • Bank statements for last 6 months

Documents required for partnership firms

Proof of identity of partnership firm (any two of the following):

  • Sales tax / VAT /Service tax / Excise registration OR
  • Registration under Shops and Establishment Act OR
  • PAN ID / IT return of the concern OR
  • Water / Electricity / Municipal tax bill in the name of the concern OR
  • MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for all the partners (any one of the following):

  • Passport OR
  • Voter’s identity card OR
  • Photo PAN card OR
  • Driving license OR
  • MAPIN card

Proof of residence address to be submitted for all the partners (any one of the following):

  • Passport OR
  • Voter’s identity card OR
  • Driving license OR
  • Ration card OR
  • Society outgoing bill OR
  • Life Insurance Policy OR
  • Electricity bill OR
  • Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

  • P & L and balance sheet for last two years audited by a C.A. AND
  • Copies of IT returns for the last two years AND
  • Bank statements for last 6 months

Documents required for private limited companies

Proof of identity of private limited company (any two of the following):

  • Sales tax / VAT /Service tax / Excise registration OR
  • Registration under Shops and Establishment Act OR
  • PAN ID / IT return of the concern OR
  • Water / Electricity / Municipal tax bill in the name of the concern OR
  • MAPIN card in the name of the concern

Memorandum and Articles of Association

  • Certificate of Incorporation
  • Board resolution
  • Copy of Annual Return establishing the shareholding pattern

Proof of individual identity to be submitted for the authorised signatories and 2 directors (including the managing director) (any one of the following):

  • Passport OR
  • Voter’s identity card OR
  • Photo PAN card OR
  • Driving license OR
  • MAPIN card

List of directors

Copy of Form 32 filed with ROC

PAN card / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

  • P & L and balance sheet for last two years audited by a C.A.AND
  • Copies of IT returns for the last two years AND

Documentation for collateral security

Micro and Small Enterprises (MSEs) can avail of loans upto Rs 10 lakhs without any collateral security).

Residential Property, Commercial Property, Industrial Property, DUL and other Liquid Assets can be provided as collateral