MSME Loans from DBS Bank 2022

DBS Bank is a global banking and monetary administrations firm that functions and oversees the banking tasks in India alongside other markets based in nations like Singapore, China, Indonesia, Hong Kong, and Taiwan. The bank got merged with Lakshmi Vilas Bank last year. DBS Bank possesses extensive practical experience in giving MSME loans and working capital loans to its customers at an appealing rate of interest starting from 13.05% with adaptable repayment options.

Note: Aforementioned details may vary as per the sole discretion of the DBS Bank and the Reserve Bank of India.

Following are the types of business loans that DBS Bank offers:

• DBS Business Loan
• DBS SME Loan
• DBS Corporate Loan
• DBS Micro Loan
• DBS Working Capital Loan

The following types of entities are eligible to apply for the MSME loans from DBS Bank:

• Sole proprietors / proprietorship firms
• Partnership firms
• Private limited companies / Public limited companies

Following are the documents that are required for availing business loan from DBS Bank:

KYC Documents:

• Voter Identity Card.
• PAN Card.
• Valid Passport.
• Driving License.
• Job Card issued by NREGA.
• The letter issued by the Unique Identification Authority of India (UIDAI) consisting of vital details (Name, address and aadhaar number).

Financial Documents:

• For Self-Employed Individuals / Sole Proprietorships
• Last 3 years' audited income tax returns and financials. (Balance Sheet, Profit & Loss A/c, Income Computation along with all schedules.)
• Last 6 months' bank statements of the borrower's main account(s).
• Last 3 months' bank statements of the borrower's other bank accounts stated in the Balance Sheet.

For Partnership Firms

• Last 3 years' audited income tax returns and financials. (Profit & Loss A/c, Balance Sheet, Income Computation along with all schedules.)
• Last 6 months' bank statements of the borrower's main account(s).
• Last 3 months' bank statements of the borrower's other bank accounts stated in the Balance Sheet.
• Partnership deed and partnership authority letter.
• Memorandum of Association (MoA) and Articles of Association (AoA) and Board Resolution from the company.
• Certificate of Incorporation (COI) for companies.

For Public / Private Limited Companies

• Last 3 years' audited income tax returns and financials. (Profit & Loss A/c, Balance Sheet, Income Computation along with all schedules.)
• Last 6 months' bank statements of the borrower's main account(s).
• Last 3 months' bank statements of the borrower's other bank accounts stated in the Balance Sheet.
• Memorandum of Association (MoA) and Articles of Association (AoA) and Board Resolution from the company.
• Incorporation Certificate for companies.
• Latest shareholding patterns for Private Ltd. / Public Ltd. Companies.

Furthermore, the bank may ask for additional documents.

Following are the time limits for the approval of the application for business loans in DBS Bank:

Micro and Small Enterprises (MSE) Segment

• Credit limit or top-up of up to Rs. 5 lakhs – within 14 days
• Credit limit or top-up of an amount ranging between Rs. 5 lakhs and Rs. 25 lakhs – within 30 days
• Credit limit or top-up of up to Rs. 25 lakhs – within 60 days

For other loans

• For tenure of facility up to 1 year – 30 days
• For tenure of the facility beyond 1 year – Project loan: 45 days

                                                                            Non-project loan: 60 days

Following are the fees and charges that are levied by the DBS Bank in their business loan product:

• Processing Fee - 4%
• Foreclosure Charges - Up to 5% of the total approved limit
• Penal Interest - 3% on the existing interest rate
• Commission on Letter of Credit - Up to 4% p.a. shall be levied on the pro-rata basis
• Stamp Duty and other Statutory Charges - As per the law of a particular state
• Pre-payment Charges – Nil (up to Rs. 50 lakhs on fixed-rate loans)
• Copy of Loan Documents - Nil

Note: Aforementioned details may differ as per the sole discretion of the DBS Bank and the Reserve Bank of India.

The significant elements of MSMEs that the DBS Bank assesses at the time of credit appraisal are as follows:

• Bank Statement evaluation
• Business type
• Business term
• Credit Bureau
• Financial Forte
• Trade
• Other de-duplicate checks, etc.