Maintaining a cash flow is extremely important for the growth and operations of numerous businesses. In this competitive market, to continue operations, it is extremely important for small shopkeepers and merchants to build a good reputation to ensure regular shoppers for the cash flow. Doing this helps them to stay ahead in the competitive market.
But, the global pandemic has affected these small shopkeepers in the worst way possible. Consequently, numerous banks have introduced their schemes to help these shopkeepers sail through the tough time and get back on their feet. One such scheme that has gained huge popularity and helped businesses meet their capital needs is the Dukandar Overdraft Scheme. This blog will provide a detailed guide on what Dukandar Overdraft Scheme is and how it can help your business grow. Keep scrolling through to know the in-depth details:
What is the Dukandar Overdraft Scheme?
The Dukandar Overdraft Scheme is a small business financing program specially designed for dukandars. The scheme provides small and medium businesses with access to pre-approved working capital financing and overdraft loans. The OD loan for business is given with a tenure of up to 5 years, and a repayment schedule is linked to the seasonality of cash flows. The Dukandar Overdraft Scheme provides a comprehensive package of loans and financial assistance to entrepreneurs in the form of overdrafts in business, secured loans, and other credit facilities.
Features of the Dukandar Overdraft Scheme
The Dukandar Overdraft Scheme is highly advantageous, especially for small businesses, shopkeepers, retailers, and Kirana stores. Below listed are some of the features that make Dukandar overdraft in business the best scheme for users to apply for:
1. Easy Availability: The Dukandar Overdraft Scheme is designed to provide easy availability of funds to small businesses. Business owners can access the OD loan for business by providing collateral or a personal guarantee. The scheme simplifies the loan application process, allowing businesses to get the funds they need quickly.
2. Flexible Repayment: The scheme is designed to be flexible in terms of repayment. Businesses can choose the terms and conditions of their OD loan for business, including the interest rate and repayment period. This allows businesses to find the best possible repayment plan for their business needs.
3. Low-Interest Rates: It offers OD loans for businesses at competitive interest rates. Dukandar Overdraft Scheme helps businesses to lower their overall interest expenses due on loans and maximize the overall value of their loan.
4. Reliable Support: Dukandar Overdraft Scheme provides reliable support by offering comprehensive information about the scheme, loan options, and other related concerns. Therefore, this scheme offers the best solution during uncertain and financial hardship.
5. Security: It also offers businesses security for the amount borrowed by providing collateral or a personal guarantee. This helps businesses to secure their finances and minimize their risk of defaulting on their loans.
6. High-Value Amount: The Dukandar Overdraft Scheme offers an overdraft in business ranging from a minimum of ₹50,000 to a maximum of ₹10 lakhs that businesses can apply according to their growth requirements. With such a broad option of OD loan for business, you can meet the working capital requirements.
7. No Collateral: Since the Dukandar Overdraft Scheme helps meet the demands of smaller shopkeepers and merchants, it grants financial assistance without requesting any security in the form of collateral. The strain on small business owners is lessened as a result, and you can apply for financial aid without worrying about setting up collateral.
If you plan to apply for an overdraft in business, it is important to check the eligibility criteria before applying. Here are the details for you to explore.
Eligibility Criteria for Dukandar Overdraft Scheme
- This funding option is available for retailers, shopkeepers, and village-level entrepreneurs.
- For you to apply for the Dukandar Overdraft Scheme, you must be a proprietor or a business partner.
- The business must be operating for a minimum tenure of 5 years.
- To avail the OD loan for business, you must provide a 6-month bank statement.
- Also, before applying for the overdraft in business, ensure that you must have been a customer of the bank for at least 15 months.
Ensuring that you meet all these eligibilities will help to fetch faster and more seamless approval of the OD loan for business.
The Dukandar Overdraft Scheme is a great way for small businesses and merchants to quickly access funds without taking on expensive debt. It provides an accessible and reliable overdraft in business for managing cash flow and supporting business growth in the short and long term. The scheme’s benefits are clear, from allowing businesses to keep various kinds of transaction records to have the flexibility to pay back at any time. For businesses looking for an OD loan for business capital for their day-to-day operations, the Dukandar Overdraft Scheme is an attractive and viable option.
Now you can enjoy the benefits of the Dukandar Overdraft Scheme that is offered by HDFC Bank. They help dukandars to avail of an overdraft for the business of up to ₹10 lakhs instantly with a low-interest rate. This scheme offered by HDFC Bank is collateral-free and offers flexible EMI options.
You can visit HDFC Bank’s website and explore their wide schemes to avail of easy overdrafts.
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