DCB Bank Business Loan
DCB Bank is a new-generation private sector banking institution with a vast network of 356 branches (as of 30th September 2021) in India. This SCB (scheduled commercial bank) is under the regulation of the RBI (Reserve Bank of India) and is professionally governed and managed.
Features and Benefits of DCB Bank Business Loan
- DCB Bank approves the maximum possible business loan amount based on the requirement assessment, as well as the applicant's financial soundness and paperwork.
- Contrary to other banks and finance providers, the DCB Bank lends up to 100% of the property value, i.e., the Loan-to-Value (LTV) ratio is extremely high.
- DCB Bank provides term loans secured by rental receipts from your business tenants' lease contracts. Rent is used as security or collateral for the approval of a business loan to make it more accessible.
- The presence of balance transfer allows you to unlock a business loan at lower interest by transferring the existing one with high interest to DCB bank.
- DCB Bank offers a comprehensive insurance plan to cover borrowers' loan amount in the event of unexpected death or illness at very low insurance premium rates.
DCB Bank Business Loan Eligibility Criteria
Get familiar with the DCB Bank business loan eligibility criteria to avail of a business loan with utmost ease.
- Self-employed individuals/Proprietors/Private Ltd. Co./Partnership Firms associated with manufacturing, trading and services.
- Individuals whose current business has been in practice for at least three years.
- The business loan applicant must be at least 21 years old at the time of loan application. Additionally, the applicant's age should not exceed 65 years at the end of the loan tenure.
DCB Bank Business Loan Fees and Charges
|Loan Processing Fee (Non-refundable)||Up to 2% of the principal loan amount, which is subject to INR 10,000 at minimum. The loan processing fee is payable at the time of submission of the loan application.|
|Re-Pricing Charges||Up to 1% of the outstanding loan amount. Generally at a minimum of INR 5,000|
|Penal Interest||3% per month|
|Cheque or ECS Swap Charge||INR 500 per event|
|Retrieval of Property Documents||INR 500 per event|
|Cheque Bounce Charge||INR 750 per event|
|Amortisation Schedule||INR 100 per schedule|
|Account Statement||INR 100 per statement|
|Foreclosure Statement||INR 100 per statement|
|Duplicate copy of No Objection Certificate or No Dues Certificate||INR 100|
|Revalidation of NOC||INR 100 per NOC|
|Provisional Income Tax Certificate||Not Applicable|
|Final Income Tax Certificate||Not Applicable|
|Interest Certificate||Not Applicable|
|Change of Address||Not Applicable|
|Copy of the Loan Agreement||INR 500 per event|
|No Objection Certificate and No Dues Certificate||Not Applicable|
DCB Bank Business Loan Interest Rates
DCB Bank offers competitive business loan interest rates ranging from 9% to 16%. To determine the applicable interest rate, get in touch with the bank executives, either through their website or by making an in-person visit to the nearest DCB Bank branch.
Factors Affecting DCB Bank Business Loan Interest Rates
To get approval for a DCB Bank Business Loan with utmost ease, you will have to make sure that your following attributes are on point:
Nature of Business
Positive and profitable business organisations get relatively easy approval for a DCB Bank Business Loan at reduced interest rates. In the case of firms that are blacklisted or have bad reviews, a higher interest rate is levied, or the application is rejected.
CIBIL score or credit report accounts as a crucial factor in determining at what interest rate an applicant will get loan approval. The loan provider scrutinises the applicant's credibility by understanding the repayment history and credit score.
Having a good credit score somewhere around 700 or above allows you to access business loans at lower interest rates. On the other hand, if you have a bad credit score, i.e. lower than 600, the possibilities are your loan application will be rejected or approved at higher interest rates.
Business Stability and Experience
Businesses with greater stability are more likely to be approved for loans with lower interest rates. The offerable interest rate for a business loan is calculated by DCB Bank based on the applicant's entire business experience. Individuals with a solid business record and a long-running venture are more likely to get business loans at lower interest rates. Defaulted financial records will result in a loan application being denied.
The most important factor that influences the proposed business loan interest rate is the venture's annual turnover. With a strong turnover and income, your business becomes more credible, resulting in loan approvals at reduced interest rates. Ventures with little turnover, on the other hand, maybe approved but at higher interest rates, leading to greater EMI amounts.
It is always recommended to maintain a good relationship with the bank executives. When you have a good reputation in your bank, getting loan approval at a lower interest rate becomes an easy deal. You get the chance to negotiate the applicable interest rates to unlock a better deal.
Repayment history impacts your overall credibility and credit score. It's advisable to always pay your debts and associated payments on time to eliminate negative remarks from your repayment history. This will augment your loan approval chances and accessibility to lower interest rates.
Documents Required to Apply for DCB Bank Business Loan
Here's the list of documents required to apply for a DCB bank business loan:
General Documents (Applicable for All)
- A duly filled and signed business loan application form
- Filled Annexure R to represent the beneficial owner
- Passport size photographs of the applicant and co-applicants, directors and key persons of the venture
- Identity, residence, and age proofs of linked applicants, such as Aadhaar card, PAN card, voter ID card, utility bills, etc.
- Previous year's bank statement of associated business accounts as a transaction proof and other accounts from which the repayment will be deducted
- ITR of the last three years with income computation as well as financials
- GST returns (the latest two in case applicable)
- Scanned copy of trading licences, statutory licences, along with other documents that denote business stability
- Details of previously held business loans, their statement, along with the repayment record
- Photocopy of the mortgaged property documents
- Documents that represent the previous chain of agreements
- Documents associated with approval of balance transfer from the previous financier along with the foreclosure statement of existing business loan
Sole Proprietary Firms
|Registration certificate||Income tax returns|
|The authentic licence issued by the officials as per the Shops and Establishment Act||Certificate of Importer – Exporter Code, etc.|
|Registration certificate||Identification information as per Section 15 regarding the power of attorney|
|Copy of partnership deed|
|Incorporation certificate||Board resolution with authorised signatory for signing on behalf of the venture for the different loan procedure|
|MOA & AOA||Identification information based upon Section 15 associated with the power of attorney|
How Does the EMI Calculation Work for DCB Bank Business Loans?
The DCB Bank Business Loan Calculator helps you estimate your EMIs instantly. All you have to do is enter your business loan amount, interest rate and tenure. You will get detailed results on how much you will have to pay each month (combining both interest and principal amount) effortlessly.
Calculating your EMIs is an intrinsic step before applying for any loan. And just as you can calculate your equated monthly instalments online, you can do the same manually. However, it will be effortful and time-intensive. Use the below-mentioned formula to calculate your business loan.
EMI = P x R x (1+R)N/ (1+R) N - 1
- P = Loan Amount
- N = Loan Tenure
- R = Rate of Interest
How Does DCB Bank Compare with Other Lenders?
|Lender||Interest Rates (% per annum)|
|Lending kart Finance||18%|
|IDFC First Bank||20%|
|HDB Financial Services Ltd.||22%|
DCB Bank Business Loan Customer Care Number
If you want to get in touch with the bank executive to get more information about DCB Bank Business Loan specific to your case, you can call on the toll-free DCB bank customer care number, i.e. 1800 209 5363. The executives are readily available to redress your queries on weekdays.
From refinancing to reducing your interest, we have the answers right here.
Is part payment allowed in DCB Bank?
Yes, DCB Bank allows loan applicants to make prepayments and part-prepayments after 12 months of loan repayment tenure. But, you may have to pay the associated charges.
How can I speed up my business loan approval?
If you are willing to speed up your DCB Bank Business Loan Approval, be prepared with the loan documents beforehand. Additionally, make sure that you adhere to the eligibility criteria to avoid rejections. Count on online loan applications through their official website for faster processing and approval.
What is loan foreclosure?
When a loan borrower decides to pay off the debt before the completion of loan repayment tenure, it is termed loan foreclosure.
What is the interest rate of the DCB Bank business loan?
DCB Bank offers competitive business loan interest rates varying from 9% to 16%. However, the offered interest rate will be determined based on certain factors, including business stability, credit score and financial stability.
What are the documents required in DCB Bank for a business loan?
To avail of a DCB Bank Business Loan with utmost ease, you will have to prepare a set of documents beforehand. Be ready with the hard copies as well as soft copies of documents related to residence proof, identity proof, business proof and business documents to prove business stability.
Does DCB Bank check for CIBIL score for business loans?
Yes, DCB Bank takes the CIBIL score into consideration for determining an applicant’s creditworthiness.
What is the maximum and minimum DCB Bank Business Loan amount I can get?
DCB Bank offers business loans ranging from INR 1 lakh to INR 40 lakhs.
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