Different Types of MSME Loans Offered by Dhanlaxmi Bank

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MSME Loans from Dhanlaxmi Bank

Different types of loan schemes offered by Dhanlaxmi Bank to MSME businesses

Dhanlaxmi Bank is a private sector bank in India headquartered in Thrissur, Kerala. It was founded in 1927 as Dhanalakshmi Bank Ltd., making it one of the oldest banks in India. It became a scheduled commercial bank in 1977.

Dhanlaxmi Bank specialises in providing banking and financial services such as consumer banking, corporate banking, private banking, wealth management, mortgage loans and investment banking.

The bank also caters to the small business sector and offers different types of MSME loans. Let’s take a look at 3 of these loans.

Capacity Expansion Loan

The Dhanlaxmi Bank Capacity Expansion Loan or Capex Loan, as the name suggests, is a loan scheme designed to help small businesses get funds for business growth and expansion-related activities such as for purchase of land or property to set up one or more office units, for vehicles for business use and for machinery.

The bank also extends this loan to small businesses that need funds to carry out activities related to talent acquisition. The loan amount sanctioned by Dhanlaxmi Bank under this loan scheme depends on the needs as well as the repayment capacity of the borrower.

Working Capital Finance

Businesses in the MSME sector sometimes may require funds to carry out day-to-day operations such as ordering of raw material, paying salary to staff, paying off power bills, etc. They can take advantage of the Dhanlaxmi Bank Working Capital Finance scheme to meet their short-term capital needs. Borrowers can choose between 2 options: cash credit or overdraft facility, under this scheme.

Trade Finance

Dhanlaxmi Bank offers funded assistance to trade businesses in the MSME sector to help meet their business needs for any activity during the pre-shipment or post-shipment stages. The funds from this loan can be used at any stage from the import of raw materials to export of finished goods. The bank extends this loan in Indian as well as foreign currencies.

A Final Word

Now that you know that Dhanlaxmi Bank offers special assistance to small businesses to help them meet their working capital and capital expenditure needs, you may want to know more. If you are interested in learning more about MSME loans, please check out our MSME loans section. We have covered MSME loans from major Indian banks in some detail and it may prove useful.

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