Dhanlaxmi Bank

Choosing the right product

• Working capital facilities fit day-to-day cash needs, including bill discounting against shipments and supply chain invoices.
• Capacity expansion loans fit the purchase of machinery and fixed assets.
• Export packing credit and post-shipment credit fit businesses that export.
• The Bill Discounting System applies only to contractors in Kerala.

How applications work

• Use the bank's online SME Banking form and select the product you want.
• Keep your Udyam Registration Certificate, GST registration and promoter KYC documents ready. The bank's checklist asks for them.
• For expansion proposals, prepare a project report.
• Ignore anyone who asks for an upfront processing fee, insurance amount, TDS or transaction charge before a loan. The bank says it does not use outside agents for loan sourcing.

How selection works

• The bank's MSME guidelines set decision timelines of 14 working days for smaller loans and 40 working days for larger loans.
• No pre-closure or pre-payment charge applies to floating-rate loans sanctioned to micro and small enterprises, under RBI guidelines.

What reviewers look for

• The pages do not state reviewer criteria. The bank's checklist asks for documents on the business and its organisation, the purpose of the loan and, for some working capital limits, a stock and receivables audit report.

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala. Its SME Banking pages describe loan and credit lines for businesses in three segments: manufacturers, wholesale and retail traders, and services firms. The bank's pages do not single out startups, so a founder should first check whether the business fits one of these segments.

What the SME lending covers

The working capital facilities provide cash credit or an overdraft, plus a working capital loan, for a business's complete working capital needs. The same page covers bill and invoice discounting, including pre- and post-shipment finance, supply chain finance and LC-backed bill discounting. A separate Bill Discounting System facility lets contractors discount a promissory note issued by the Govt of Kerala through a digital platform. That scheme applies only in Kerala.

The capacity expansion product offers business expansion loans for machinery, fixed assets and similar purchases. The trade facilities page lists export packing credit and post-shipment credit, both available in Indian and foreign currency. It also lists letters of credit, bank guarantees, collections and remittance services. This page treats only the two credit lines as loans.

Who can apply

The SME segment page names manufacturers, wholesale and retail traders, and services firms. The pages state no other eligibility rule. If your business is a startup that does not fit these segments, the pages do not say whether the bank will consider it, so ask a branch before you apply. The bank's indicative checklist for MSME loan applications asks for documents such as the Udyam Registration Certificate and GST registration. For expansion proposals it also asks for a project report.

How to apply

The bank asks applicants to leave their details on an online SME form. The form asks for the customer type, name, mobile number, state, city, preferred branch and the product wanted. The form lists several SME products, including working capital, capex and export packing credit, with a field for the product you want, so one form can cover more than one line. The bank says it will get in touch. The bank also states that it has not engaged any external agents for sourcing loans, and that loan requests are considered only at its branches, on merits. Its fraud notice warns that fraudsters ask for processing fees, insurance amounts, TDS or transaction charges before a loan.

Decision timelines and charges

The bank's MSME general guidelines set decision timelines for loan applications: 14 working days for smaller loans and 40 working days for larger ones. The same guidelines say the bank does not charge pre-closure or pre-payment fees on floating-rate loans sanctioned to micro and small enterprises, in line with RBI guidelines.

Locations

The bank states that it was incorporated at Thrissur, in Kerala. The pages read for this entry do not give a full head-office street address, so the address is left out of this profile. The customer care page lists phone banking and a missed-call balance service for account holders.

Who runs it

The About Us page says the bank was started by a group of ambitious and enterprising entrepreneurs, and that it has grown in the years since. It describes its mission as banking with integrity and social responsibility, and its vision in terms of relationships.

Other pages on the SME Banking section

The SME Banking section also links a Loan Tracking System, where borrowers can track the status of a loan. It also links a policy on the revival and rehabilitation of MSMEs. That policy is for businesses already under financial stress, so it is not a lending line for new or growing firms and is not listed as a programme in this profile. The MSME revival application form asks for details of stress, existing liabilities and possible revival steps.