Exploring Dena Shakti Scheme: Business Loan Insights

If you closely review the Indian business sector, over the past few years, the MSME (micro, small, and medium enterprise) has been one of the fastest-growing sectors in the country. It has been a budding ground for small business owners, and especially women-led businesses have flourished a lot, boosting the country’s overall economic growth.

However, as per a report published by the Ministry of Statistics and Program Implementation, female business owners comprise only 13.76% of the total small businesses existing in India. This translates to roughly 8 million business entrepreneurs as compared to about 50 million male entrepreneurs.

This lopsided entrepreneurial landscape can be attributed to several factors, including gender bias, which is quite rampant in India, lack of loan schemes for women, and shortage of supportive infrastructure. To address this issue of lack of financial support for women entrepreneurs, the government of India and even some private entities have launched specialised business loan schemes for women.

One such scheme is the Dena Shakti Scheme. It aims to empower aspiring women business owners to start their own enterprises and also encourage current business owners to grow further and achieve great success in their entrepreneurial journey.

What is Dena Shakti Scheme?

The Dena Shakta Scheme is managed by Dena Bank, and it is specifically designed to empower business entrepreneurs and provide them with easy access to financial assistance. The Shakti Scheme helps eliminate the complexities involved with getting a business loan for women and helps them get the funds they need for their business establishments.

Under the Dena Shakti Scheme, all women entrepreneurs involved in businesses like retail, trade, agriculture, education, and SME (small and medium enterprise) sectors can avail a small business loan of up to Rs. 20 Lakh at concessional interest rate and raise capital to expand their operations.

Here is a quick review of what the Dena Shakti Scheme entails

Interest Rate	0.25% lower than the existing base rate. It is applicable only to female entrepreneurs who hold a majority stake in the business.
The maximum loan amount available for agriculture business	Rs. 20 Lakh
The maximum loan amount available for manufacturing, retail, trade, and other small businesses	Rs. 20 Lakh
The maximum loan amount available for microcredit business	Rs. 50,000
The loan repayment tenure (maximum limit)	7 years
Loan processing fee	0.50% of the sanctioned loan amount

Eligibility Criteria for Dena Shakti Scheme

As a women entrepreneur, to avail a business loan under the Dena Shakti Scheme, you must meet certain eligibility requirements, which are:

• The Dena Shakti business loans for women scheme is only extended to women who have more than 50% ownership in their business enterprise
• Under the Dena Shakti business loan scheme, you can avail of a business loan even if you are a self-employed professional like a doctor, architect, chartered accountant, etc.

Documents required to avail business loan under the Dena Shakti Scheme

Like any other loan, to avail of a business loan under Dena Shakti Scheme, apart from meeting the eligibility criteria, you must also comply with the documentation process and submit the following documents:

• Identity proof – Aadhar Card, PAN (permanent account number) card, Voter ID, driving license (you can submit any of these documents)
• Proof of residence – Utility bills, ration card, passport, Aadhar card (you can submit any of these documents)
• One passport-sized photograph
• Bank account details

How to apply for the Dena Shakti Scheme?

 

Applying for a business loan under the Dena Shakti Scheme is quite simple. All you have to do is visit any of the Dena Bank branches, collect the Shakti Scheme application form, fill in the necessary details in the form, and submit it along with the required documents.

After you submit the form, you must wait for the bank to process your application, and once the application is approved, the sanctioned amount will be credited directly to your bank account.

Sectors covered under the Dena Shakti Scheme

Dena Shakti Scheme is one of the most loved business loan schemes in India, and for a good reason. It offers business loans to all women entrepreneurs and covers different business sectors, empowering women to carve a niche in their business field.

Also Read: Understanding Mudra Loan Options for Women

As a woman business owner, you can secure a loan under the Shakti Scheme if your small business enterprise falls under the following sectors:

• Education
• Housing
• Small enterprises
• Retail trade
• Agriculture and allied businesses
• Microcredit
• Self-employed women

Conclusion

The Dena Shakti Scheme is one of the many business loan schemes in India that are designed to empower women business owners, allowing them to grow and paving the way for a more balanced and diversified business landscape in the country.

By offering financial support to women at discounted interest rates and more favourable repayment terms, the scheme aims to help women business owners overcome the challenges they face with regard to the lack of funds to grow their businesses.

If you are looking for other business loan solutions apart from the Dena Shakti Scheme, you can trust Udyog Plus, one of the leading NBFCs (non-banking financial companies) in India, to offer you the best loan at a competitive interest rate. They offer unsecured loans, meaning you need not provide any collateral to secure the funds, and you can get a loan of up to Rs. 2 Lakh without submitting any documents.

Also, the easy online application process and quick disbursal ensure that you have a hassle-free borrowing experience. So, visit the official Udyog Plus website now to know more about the loan and apply online!