Dena Bank, now merged with Bank of Baroda offers banking and financial products at affordable interest rates. Like other banking products, Dena bank specialises in providing business/MSME loans to individuals and enterprises. Business loans offered by bank can be availed by businessmen, traders or professionals for setting up their business or for expanding an existing one.
Popular Dena Bank MSME loans – 2020
Dena Laghu Udyami Credit Card (DLUCC) Scheme
This scheme can be availed by retail traders, artisans, existing customers, borrowers from small business units, self-employed persons, professionals, and borrowers from village industries and small scale industrial units. The loan amount offered under this scheme is up to Rs. 10 lakh with at least 3 years of satisfactory dealing with the bank.
Assessment of Credit Card Limit:
- For Small business, retail traders: Last 12 months’ turnover in the operative account or 20% of annual turnover declared for tax purpose, whichever is higher
- For professionals and self-employed: 50% of gross annual income, as per IT returns would be considered as loan amount
- For Small scale industrial units: As per the modified Maximum Permissible Bank Finance (MPBF) method would be the limit
Dena Shakti is a SME loan especially designed for women entrepreneurs to facilitate them to establish and run their own business. Dena Shakti Loan is allowed for the following activities:
- Any type of agricultural and allied activities
- Any type of retail trade and business activity
- Micro credit activities
- Education related activities
- Housing activities
Besides women entrepreneurs, Dena Shakti loan scheme can also be availed by small enterprises which include micro and small manufacturing businesses, service businesses and self-employed professionals.
- Composite loan limit for Small Scale Industries units is increased up to Rs. 50 lakh
- No collateral for loan amount up to Rs. 5 lakh and up to Rs. 25 based on good financial position
- Margin is Nil up to Rs. 25,000 & 15% – 25% above Rs. 25,000
The loan amount offered depends on the activity which is being financed. For instance, for retail trade and business, RBI stipulates a maximum loan amount of up to Rs. 25 lakh. The rate of interest is competitive and directed by the principles of bank and RBI.
These are the primary loan schemes which Dena Bank offers to businesses and professionals. However, there are some additional loan schemes offered by Dena bank which are mentioned below:
- Wind Mill Scheme
- Small Road & Transport Operators (SRTO)
- Scheme of Dena Construction Finance to Contractors
- Channel Financing Scheme:
- Supplier Bill Discounting Scheme
- Dealer Finance Scheme
- Scheme for Financing to Agro Processing & Cotton Ginning & Pressing Unit
- Scheme for Ceramic units for Wankaner Morvi Districts, under Rajkot Region & Thangadh District under Bhavnagar Region
- Special Scheme for Cluster Units as identified by UNIDO (United Nations Industrial Development Organization)
Documents Required for Dena Bank Business Loan
Below mentioned are some documents that are required to apply for a business loan from Dena Bank:
- Loan Application along with recent photographs
- Proof of Identity
- Proof of Address
- Proof of Age
- Income Proof (Bank Statements, Bank Passbooks or salary slips)
- Income Tax Returns along with Form 16
Below mentioned are some eligibility criteria that are set by the bank:
- The loan applicant should be at least 18 years of age and the maximum age should be 65 years
- The loan applicant should not be a defaulter of any bank or any financial lender
- The loan applicant should have a partnership firm or own business
Check your EMI on: Business Loan EMI Calculator
How to Apply for Dena Bank Business Loan?
Dena Bank offers multiple business loan products that cater to different sections of business aspects. The business loans are offered for self-employed professionals, for doctors, for traders, for women etc. If an applicant is looking for options and want to apply for a business loan, he/she can visit Paisabazaar.com and compare best available deal that suits the requirements.