Dhanlaxmi Bank Business Loan

Dhanlaxmi Bank provides unsecured loans that are ideally aimed to provide financial aid towards business needs of self-employed professionals, business owners and even doctors.

These loans can help out in the growth or urgent financial demands of any business. You can avail a business loan of up to Rs.5 crore for tenure ranging up to 5 years.

Dhanlaxmi Bank Business Loan Details

Loan amount

Rs.10 lakh to Rs.5 crore

Tenure

1 year to 5 years

Interest rate

10.30% p.a. onwards.

Where can a Dhanlaxmi Bank Business Loan be used?

This unsecured loan is provided to self-employed individuals or entrepreneurs for the sake of furthering their business. Long repayment terms allow the loan to function as an effective working capital tool.

Who can apply for Dhanlaxmi Bank Business Loan?

An unsecured business loan as this has a few eligibility criteria to be met in order for the financial institution to be able to sanction the loan. The eligibility requirements can be mentioned as follows –

  • Applicants can be individuals, professionals, sole proprietorships, partnership firms and private limited companies (including closely-held public limited companies)
  • Applicants should be at least 23 years of age when the loan is sanctioned
  • The minimum turnover per financial year should be as per the bank’s discretion in case of Proprietorship, Partnership Firm, Private Limited Companies, Limited Companies (closely held), Societies and Trusts
  • The minimum occupational stability for individuals and non-individuals is 5 years prior to the application of the loan and 4 years should have been spent in the current venture with a positive trend of returns

What are the types of Financing under Dhanlaxmi Bank Business Loan?

Business Loan from Dhanlaxmi Bank is a specific term loan with repayment period of up to 5 years.

What are the loan limits under Dhanlaxmi Bank Business Loan?

Based on the credit-worthiness of the applicant and validity of documents, Dhanlaxmi Bank can provide loans from Based on the credit-worthiness of the applicant and validity of documents, Dhanlaxmi Bank can provide loans from Rs.10 lakh and Rs.5 crore.

What are the interest rates for Dhanlaxmi Bank Business Loan?

Interest rates for a Business Loan could depend on the base lending rate and is based on the discretion of Dhanlaxmi Bank. Further changes to the rates could be done by Dhanlaxmi Bank as and when required.

Fees and Charges

Description

Charges levied

Overdue Charges

2.% p.a. over and above existing rate of interest for the number of days overdue since the due date.

Charges for Auto-debit Mandate / Cheque Bounce

Rs.350 plus service tax

Charges for Auto-debit Mandate / PDC Swap

Rs.500 plus service tax

EMI Cycle Change

Rs.500 plus service tax

Charges for loan Re-schedulement

0.25% plus service tax

Switch Charges (Floating to Fixed and vice versa)

3.00% + plus service tax of the outstanding loan amount

Part Prepayment Penalty

  1. Part Prepayment can be made only after 6 months from the date of disbursement of the loan amount. The payment can be done only once in a financial year subject to minimum amount of Rs.50,000 and maximum of 25% of the outstanding loan amount at the beginning of the FY.
  2. All part prepayments made within one year prior to the foreclosure of the loan will be charged at the foreclosure rate applicable.

Part Prepayment Penalty Foreclosure Penalty

  1. Foreclosure charges will be 5% plus service tax on the outstanding loan amount if the loan is closed within 6 months from the date of first disbursement.
  2. Foreclosure charge will be 3% plus service tax if loan is closed between 6 - 12 months from the date of first disbursement.
  3. The foreclosure charge will be 2% plus service tax if loan closed after one year from the date of first disbursement.

Charges for facility cancellation

Rs.2000 plus service tax plus the interest charges from disbursement date till cancellation request.

Charges for facility statement

Rs.500 plus service tax (NIL for 1 statement half yearly)

CGTMSE Guarantee Fee

Loan Amount up to Rs.5 Lakhs - 1.00% Loan Amount above Rs.5 Lakhs - 1.50%

CGTMSE - Annual Service Fee

Loan Amount up to Rs.5 Lakhs - 0.50% Loan Amount above Rs.5 Lakhs - 0.75%

Stamp duty (Facility documentation and Property) + Registration

As per Actuals

Legal, Repossession and incidental charges

As per Actuals

Insurance Premium

As per Actuals

Charge creation with ROC

As per Actuals

Any other charge

As per sanction letter

*Service charge as applicable

What documentation is required during applying for Dhanlaxmi Business Loan?

The standard list of required documents for applying for this loan are mentioned as follows –

  • KYC (Know your customer) & Constitutional Documents
  • Loan application form
  • Audited Financial report
  • Borrower & Key Personnel Profiles
  • Borrower Existing Bank Sanction Letter
  • Borrower Existing Bank Statements
  • Borrower External Rating Report (if available)
  • Key Personnel Net worth Statements

The above set of documents comprise the minimum required list. To aid in credit approval, Dhanlaxmi Bank might ask for extra documents if necessary.

What are the features of Dhanlaxmi Bank Business Loan?

The Business Loan from Dhanlaxmi Bank is a good financing option for urgent financial needs on business grounds.

Some key features of this specialised loan are as follows –

  • Loan tenure or repayment period can be as high as 60 months.
  • Minimal documentation and faster approval.
  • High loan amounts up to Rs.5 crore.

How to apply for Dhanlaxmi Bank Business Loan?

The loan can be applied for through Dhanlaxmi Bank’s website, as well as forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail Dhanlaxmi Bank requesting an executive assistance for application process.

One can also apply for Dhanlaxmi Bank Business Loan through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.

FAQs on Dhanlaxmi Bank Business Loan

  • I have four years or experience with three years in the current venture. Can I apply for a business loan from Dhanlaxmi Bank?

    No, you cannot apply for a business loan from Dhanlaxmi Bank if you have four years of experience with three years in your current venture. The requirement is to have five years of total experience with four in your current venture.

  • Is the EMI calculator facility available on the Dhanlaxmi Bank's website?

    Yes, you can visit the business loan section on the Dhanlaxmi Bank's official website where you will find the EMI calculator facility. You can use the tool to determine the EMI you will be paying depending on the loan amount and tenure.

  • I have a shop which sells electronic appliances. I am looking to expand my business. Can I avail a business loan from Dhanlaxmi Bank?

    Yes, you can apply for a business loan from Dhanlaxmi Bank so that you can expand your business. However, you must ensure you are meeting the eligibility criteria.

  • How much time will it take for the bank to disburse the loan amount to my bank account?

    The bank may take up to 15 business days to process and verify your loan. If all the documents and details provided by you are correct, then the bank will sanction your business loan application and disburse the loan amount to your bank account.

  • Is it important to maintain a good credit score to apply for a business loan from Dhanlaxmi Bank?

    Yes, it is important you maintain a credit score of 750 and above so that not only you get your business loan application approved without any hassle, but also at a lower interest rate as well. If your credit score is poor, then it becomes difficult for you to get a loan. Even if you manage to get one, the interest rate charged is very high.

Disclaimer
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.