Dena Shakti Scheme: Empowering Women Entrepreneurs for Success

For women entrepreneurs, raising capital for their startups or Micro, Small, and Medium Enterprises (MSMEs) can often be a daunting task and a significant obstacle on their entrepreneurial journey. However, with the advent of the Startup India portal, a solution has emerged to alleviate these difficulties. Several banks now offer loans specifically tailored to support women entrepreneurs in embarking on their entrepreneurial ventures.

What is the Dena Shakti Scheme? 

The Dena Shakti Scheme, managed by Dena Bank, aims to empower women entrepreneurs and provide them with financial support to thrive in their business ventures. Recognizing the potential and talent of women entrepreneurs, the Dena Shakti Scheme offers a simplified and hassle-free process for securing business loans. The scheme aims to eliminate the complexities often associated with obtaining financial assistance, enabling women entrepreneurs to focus on their business goals and drive growth. 

Application Form for Dena Shakti Scheme

The application form for the Dena Shakti Scheme can be obtained from the Medium and Micro Enterprise (MSME) branch of UBI (Union Bank of India). To complete the form, you will need to provide the following details:

1. Name and Address of the Enterprise- Include the full name and address of your business.

2. Category - Specify if your enterprise belongs to the Scheduled Caste, Scheduled Tribe, or Minority category.

3. E-mail Address - Provide a valid e-mail address for communication purposes.

4. Permanent Account Number (PAN) Card - Enter the PAN card details associated with your enterprise.

5. Constitution of the Enterprise - Specify the type of your enterprise, such as a private limited company, partnership, proprietary, limited company, or cooperative company.

6. Date of Establishment - Mention the date when your company was established.

7. Details of Partners, Proprietors, and Directors - Provide the names, addresses, and PAN details of partners, proprietors, and directors associated with your company.

8. Loan Details - Include the loan amount and other relevant information.

9. Collateral Security Details - Specify the collateral security details, if applicable.

10. Banking and Credit Card Details - Provide the existing banking and credit card details of your enterprise.

Document Requirements

When applying for the Dena Shakti Scheme, ensure that you submit the following documents:

1. Identity Proof: PAN card, Aadhaar Card, Driving License, Voter ID, Passport, etc.
2. Address Proof: Aadhaar Card, Valid passport, utility bill, property tax bill, etc.
3. Bank Account Details
4. Passport Size Photograph

Who can Apply for Dena Shakti Scheme? 

• Any women involved in retail, service activities, and manufacturing will be eligible for the loan in the Dena Shakti Scheme. 
• Women who are working under self-employment such as architects, Chartered Accountants, doctors, etc, will also be eligible for the benefits of the Dena Shakti Scheme.
• The loan will be provided to such women entrepreneurs that are holding the business all by themselves or at least have more than 50 % stake in the business.
• Women applying for the Dena Shakti Scheme must be a part of or pursuing the Entrepreneurship Development Programs (EDP) which is organized by various state agencies to avail the loan under the Dena Shakti Scheme.

Which Sectors are Covered under Dena Shakti Scheme?

The Dena Shakti Scheme covers a wide range of sectors, enabling women entrepreneurs to excel in their chosen fields. The following sectors are highlighted under this scheme:

1. Agriculture and Allied Activities
2. Housing
3. Education
4. Microcredit
5. Retail Trade
6. Small Enterprises (Direct and Indirect Finance)
7. Micro and Small Manufacturing Enterprises
8. Micro and Small Service Enterprises, including road and water transport operators, business professionals, and self-employed individuals.

Loan Ceiling Limits

The loan amount available under the Dena Shakti Scheme varies according to the sectors specified by the State Bank of India. The following ceiling limits apply:

1. Retail Trade: Up to Rs. 20 lakhs
2. Education and Housing: Up to Rs. 20 lakhs
3. Microcredit: Up to Rs. 50,000 

Loan Details

The rate of interest provided for the Dena Shakti Scheme will be 0.25 % below the base rates for women entrepreneurs. Such women entrepreneurs must be the majority of stakeholders in the company before applying for the Dena Shakti Scheme. The amount of loan provided for the agricultural sector will be up to Rs. 20 lakhs. The amount of loan for manufacturing purposes, retail traders, or small enterprises will be up to Rs. 20 lakhs. Such finance can be both direct and indirect finances.

The loan amount for the retail trader and micro-credit will be up to Rs. 50,000 under the micro-credit schemes. The processing fee for the Dena Shakti Scheme will be 0.50 % of the loan amount and the tenure of such loan will be up to 7 years. The women entrepreneur will be eligible to apply under the scheme that holds more than 50% ownership of the business enterprises.

What are the Interest Rates of Dena Shakti Scheme? 

Interest rates for the Dena Shakti Scheme align with the guidelines provided by Dena Bank and the State Bank of India, based on the applicable sectors, such as Agriculture, SE, and OPS. Women beneficiaries can avail themselves of a concessional rate of 25 basis points, subject to the bank's specified conditions.

What are the Benefits of the Dena Shakti Scheme?

• The Dena Shakti Scheme offers a range of benefits to women entrepreneurs, including:
• Combination of Term Loan and Working Capital: The scheme provides a combination of term loan and working capital, catering to the diverse financial needs of women-led businesses.
• Concessional Interest Rates: Women entrepreneurs are eligible for a 25% concessional interest rate on their loans, reducing the financial burden and facilitating business growth.
• Flexible Loan Term: The loan term offered to women entrepreneurs range from one to three years, providing ample time for repayment and business expansion.

The Dena Shakti Scheme is a remarkable initiative designed to empower women entrepreneurs across various sectors. By offering financial support, favorable interest rates, and flexible loan terms, this scheme paves the way for women to achieve their business goals.