DHFL SME Loans

Dewan Housing Finance Limited (DHFL), currently known as Piramal Capital and Housing Finance Limited, offers business loans for Micro, Small and Medium Enterprises (MSME). They provide business loans to promote industrial sectors and the business community in India. The business loans help MSMEs meet the requirement of working capital, short-term finance, or expanding business.

DHFL Loans for MSMEs

DHFL provides various loans or schemes for manufacturing and service rendering SMEs, which are as follows:

• Business loan

A no-collateral loan will help SMEs pay dues to suppliers or for the installation of new machinery. DHFL provides no-collateral business loans starting from Rs.3 lakh up to Rs.10 lakh. The tenure of the business loans is 36 months.

• Loan against property

SMEs can apply for a loan against a property when they need funds to stock inventory, cover running expenses, pay suppliers, pay salaries or face cash flow issues. SMEs can take a loan against a passive asset like property for running their businesses. DHFL provides this loan based on the property’s value up to Rs.3 crore at competitive rates.

• Secured business loan

SMEs can apply for a secured business loan by providing their property, such as residential, industrial or commercial, as collateral for the loan. DHFL offers secured business loans up to Rs.25 lakh. These loans allow the businesses to repay the loans every 15 days as per their convenience.

• Working capital loan

SMEs can apply for a working capital loan to meet their capital expenditures against a passive asset such as a property. DHFL provides working capital loans up to Rs.3 crore at competitive interest rates.

• Working capital secured business loan

SMEs can apply for a working capital secured business loan against a passive asset such as a property for raising their capital. SMEs can use this loan amount to build a competitive edge for their businesses by investing the funds in new machinery, modern infrastructure, or digital transformation. DHFL provides working capital secured business loans up to Rs.25 lakh.

Interest Rates for DHFL MSME Loans

The interest rates for various DHFL loans are as follows:

• Interest rate for a business loan – depends on the financial profile of the applicant and the type of loan
• Interest rate for loan against property – 11.5% p.a.
• Interest rate for secured business loan – 12.5% p.a.
• Interest rate for working capital loan – 11.5% p.a.
• Interest rate for working capital secured business loan – 12.5% p.a.

Fees and Charges for DHFL MSME Loans

The below table shows the fees and charges for business loans:

Particulars	Fees and other charges
Processing fees	Up to 4% of the loan amount plus applicable taxes (payable before loan disbursement)
Default interest	2% p.m. on default of EMI/PEMII from the default date till the actual payment date
Documentation charges	NA
Prepayment charges	5% of the principal loan amount being repaid plus applicable taxes
Part-payment charges	5% of the principal loan amount being repaid plus applicable taxes
Cheque bounce charges	Rs.500 plus applicable taxes
Collection pickup charges	Rs.250 per visit plus applicable taxes
Any legal cost or charges	At actuals plus applicable taxes
Recovery related charges	At actuals plus applicable taxes
Stamp duty charges	At actuals plus applicable taxes
Statutory charges	At actuals plus applicable taxes
Loan repayment schedule (only applicable for physical statement copy)	Rs.500 plus applicable taxes
Change of loan repayment mode	Rs.500 plus applicable taxes
Duplicate no due certificate issuance charges  (applicable only for a physical copy of statement)	Rs.500 plus applicable taxes
Statement of account (applicable only for a physical statement copy)	Rs.500 plus applicable taxes
Cash collection charges	1% of collection amount of above Rs.50,000 in cash plus applicable GST
Charges for a copy of any document	Rs.500 plus applicable taxes

The below table shows the fees and charges for loans against property, secured business loans, working capital loans, and working capital secured business loans:

Particulars	Fees and other charges
Processing fees	4% of the loan amount plus applicable taxes (payable before loan disbursement)
Part-payment/pre-closure charges	4% of the principal loan amount being prepaid plus applicable taxes
Loan repayment instrument dishonour charges	Rs.500 plus applicable taxes
CERSAI charges	Rs.500 plus applicable taxes
Loan pre-closure statement	Rs.1000 plus applicable taxes
List of documents deposited with the lender	Rs.500 plus applicable taxes
Loan repayment schedule	Rs.500 plus applicable taxes
Change of loan repayment mode	Rs.500 plus applicable taxes
Rescheduling loan terms (e.g. EMI date change/EMI increase/lowering of tenor)	Rs.5,000 plus applicable taxes
Duplicate no due certificate issuance charges (applicable only for a physical copy of statement)	First time free and subsequently Rs.500 plus applicable taxes
Statement of account (applicable only for a physical statement copy)	First time free and subsequently Rs.500 plus applicable taxes
Photocopy of documents	Rs.500 plus applicable taxes
Retrieval of original property documents	Rs.500 plus applicable taxes

Eligibility Criteria For DHFL Loans

The following are eligible to apply for SMEs loans provided by DHFL:

• Business owners
• Proprietorship firm
• Partners of a partnership firm
• Promoter or director of a closely held private company and public limited company
• The minimum age of the applicant should be 23 years
• The maximum age of the applicant should be 65 years
• The applicant must have four years of business vintage or one registered property.

DHFL SME Loans Application Process

An applicant should follow the below process to apply for DHFL SME loans offline:

Step 1: The applicant should approach the nearest DHFL branch. The applicant can search for the nearest DHFL branch from the Piramal Finance website by selecting the state and city.

Step 2: The applicant should fill out the SME loan application form and attach the required documents.

Step 3: The applicant should submit the filled out application form to the concerned official.

Step 4: The officials will conduct the verification process upon submitting the SME loan application form.

Step 5: The applicant will be given an acknowledgement slip for future reference.

Step 6: When the verification is complete and approved, DHFL will disburse the loan amount to the applicant.

An applicant should follow the below process to apply for DHFL SME loans online:

Step 1: Visit the Piramal Finance website.

Step 2: The applicant should click on the ‘MSME Lending’ option on the homepage and select the loan that he/she wishes to apply for.

Step 3: Click on the ‘Quick Apply’ button, fill out the form and click on the ‘Submit’ button.

Step 4: A bank official will contact the applicant to process the loan.

Step 5: Submit the required documents. 

Step 6: The officials will conduct the verification process and disburse the loan after approval.

Required Documents For DHFL Loans

The documents required for a proprietorship firm are as follows:

• Identity proof of the proprietor (Aadhar card, passport, voter ID card or driving license)
• Address proof of the proprietor (Aadhar card, passport, voter ID card, driving license or utility bills such as monthly electricity bill, telephone bill, etc.)
• PAN card of the proprietor
• Shop and establishment act registration
• Property documents, in case of property given as collateral
• Previous two years ITR with computation or CA audited financials
• Bank statements for the previous six months

The documents required for a partnership firm are as follows:

• Firm registration certificate
• Partnership deed
• Beneficial owners list holding 15% or more in the firm

• Address proof and identity proof
• Power of attorney (POA) 
• PAN card of the partner
• Repayment Track Record (RTR) of the existing loan or existing facility sanction letter, if any
• Property documents, in case of property given as collateral
• Previous two years ITR with computation or CA audited financials
• Bank statements for the previous six months

The documents required for a private or public company are as follows:

• Memorandum of Association (MOA) and Articles of Association (AOA)
• Latest shareholding pattern
• KYC of directors
• PAN card of the company and directors
• Repayment Track Record (RTR) of the existing loan or existing facility sanction letter, if any
• Property documents, in case of property given as collateral
• Previous two years ITR with computation or CA audited financials
• Bank statements for the previous six months

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