The Dena Shakti Scheme was a loan scheme introduced by Dena Bank (now merged with Bank of Baroda) to support women entrepreneurs in India. The scheme aimed to provide financial assistance to women engaged in various business activities at concessional interest rates.
Sectors Covered Under this Scheme
- Agriculture and allied activities
- Small Enterprises (Direct and Indirect Finance)
- Micro and small (manufacturing) enterprises
- Micro and small (service) enterprises which include small road and water transport operators, small business professional and self employees and all other service enterprises
- Retail Trade
- Micro Credit
- Education
- Housing
Key Features of the Dena Shakti Scheme
Target Beneficiaries
- Women entrepreneurs engaged in small businesses, agriculture, retail trade, education, housing, and micro & small enterprises (MSEs).
Loan Amount
- Up to ₹20 lakh for micro and small enterprises (MSEs).
- Up to ₹50,000 for microcredit.
- Higher loan amounts were available for certain sectors like agriculture and retail trade.
Interest Rate Concession
- 0.25% interest rate concession was provided to women entrepreneurs.
Collateral Requirement
- The requirement of collateral depended on the loan amount and type of business.
- Loans under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) were offered without collateral.
Repayment Tenure
- The repayment period varied based on the business type and loan amount.
Dena Bank Loan Details
| S.No. | Type | Loan Details |
| 1. | Interest Rate | 0.25% below base rates for women entrepreneurs who are majority stakeholders in the company |
| 2. | Loan Amount for Agriculture | Up to Rs. 20 Lakhs |
| 3. | Loan Amount for manufacturing, retail trader, or small enterprises (Direct and Indirect Finance) | Up to Rs. 20 Lakhs |
| 4. | Loan Amount for Retail Trader and micro-credit. | Up to Rs. 50,000 under micro credit schemes. |
| 5. | Loan Tenure | Up to 7 years |
| 6. | Processing Fee | 0.50% of the loan amount |
Benefits of Dina Bank Shakti Scheme
- The women entrepreneurs offered with the concession of 0.25% in interest rate.
- A combo of working capital and term loan
- The repayment tenure is flexible as it can be lasting up to10 years
- Microcredit and retail stores are also eligible entities along with enterprises operating in the agriculture and allied sector.
Eligibility Criteria
- The applicant must be a woman entrepreneur.
- The business should be in agriculture, retail trade, microcredit, education, housing, or small-scale industry sectors.
- The business should comply with banking norms and creditworthiness checks.
Documents Required
- Identity Proof: PAN Card, Aadhaar Card, Driving License, Voter ID Card, etc.
- Address Proof: Aadhar Card, Valid Passport, Utility bill, Property tax bill, etc.
- Bank account details.
- One passport size photo of the applicant.
FAQs
Application Procedure?
The applicant will have to approach the nearest Dena Bank Branch for applying for this loan. Then the applicant needs to get the application form from the bank office and have to fill out the business loan Shakti scheme application form in a prescribed format. The specified proofs to be submitted along with the Shakti scheme loan application form.
Current Status of the Scheme?
With the merger of Dena Bank into Bank of Baroda (BoB) in 2019, the Dena Shakti Scheme is no longer offered separately. However, Bank of Baroda provides similar loan schemes for women entrepreneurs under government-backed initiatives like:
- Stand-Up India Scheme
- Mudra Yojana for Women
- BOB Mahila Shakti Scheme
Women entrepreneurs looking for financial assistance can explore these updated loan options from Bank of Baroda and other banks.