Dena Bank provides financial assistance to the business entities engaged in various activities of manufacturing, trading and service.
The Financial assistance is provided for setting up new projects, acquiring assets and also for meeting day to day working capital requirements of the constituents.These assistances are termed as Long Term Finance & Short Term Finance respectively.
Term Loan/Finance covers funds required for acquiring means of production such as land, building and plant and machinery etc. These could be for setting up new projects or expanding the present activities. Term finance is generally given for a longer period and is repayable in instalments over the period with or without Moratorium.The period and the instalments are determined based on the repayment capacity of the project / borrower.
Working Capital Finance
Working Capital Finance (WCF) is extended for carrying out normal trading/ manufacturing activities.The working capital finance is provided for a relatively shorter period generally for a period of 1 year and renewed on yearly basis considering the performance of the borrower.
The WCF is considered only after project nearing completion and after full tie up of term loan requirement.
The Working Capital limits of the borrower are assessed by adopting various methods such as Projected Turnover Method (Nayak Committee Recommendation), Permissible Bank Finance Method, Cash Budget Method etc. depending upon the aggregate working capital limit required / enjoyed from the banking system, nature of activity, production cycle etc.
Working Capital finance is in the form of pre-sale and post-sale limits.In Pre-Sale Finance the advance is granted for acquiring Inventory for production / processing or Trading purpose while the Post-Sale Finance is extended against the receivables.Dena Bank encourages Post-sale finance in the form of purchase/discounting of bills etc.
Pre Sales Finance :
- Cash Credit Hypothecation / Pledge against Stocks
- Packing Credit Hypothecation / Pledgeagainst Stocks
- Clean Packing Credit Limit
- Trust Receipts
- Working Capital Loan (Demand / Term)
Post Sales Finance :
- Bills discounting / purchase – Inland / Foreign
- Cash Credit Hypothecation against Book Debts
- Advances against Export Incentives
- Purchase of Cheques/Demand Draft
Non Fund Based Credit Assistance
The Business units also require Credit Assistance for procurement of Goods, where the funds are not involved.Such facilities are available against the assured commitments / guarantee from the Lending Institutions.
Dena Bank is extending such Non Fund Based assistance to the eligible units in the form of :
- Issuance of Guarantee of various types like Performance, Financial, Bid Bond, Tender Deposit / Earnest Money etc. and
- Issuance of Letter of Credit
- Deferred Payment Guarantee
Bank extends credit to Exporters at Competitive rates, at both Pre-shipment and Post-shipment stages.
Recently, Bank has introduced Gold Card Scheme which provides cheaper export credits to the eligible borrowers.
Selected Clients engaged in exports are also suitably rewarded in the form of Export Credit Denominated in Foreign Currency viz. PCFC (Pre Shipment) / REBA (Post Shipment Credit).
The Bank has devised specific schemes for the following Sectors :
- Educational Institutions,
- Builders & Developers,
- Hotels & Restaurants &
- Entertainment Industry.