Karnataka Bank Business Loan | How to Apply for Business Loan at Karnataka Bank?

Karnataka Bank Business Loan, Karnataka Bank MSME Loan, Interest rate, How to Apply, Eligibility Criteria

If you are running a business, need money for expanding your business, or need to purchase any equipment, a Karnataka Bank business loan can help you out to sort all these problems.

Karnataka Bank has different types of business loans available in its basket as per the customer requirement.

Loan AmountMaximum up to ₹1500 lakh
Loan Amount under CGTMSEMaximum up to ₹200 lakh
Loan TenureTerm loan up to 120 months
Loan Interest Rate9.41 p.a – 12.56 p.a
Cash Margin25% of the loan amount or New vehicles/Equipment’s/Projects/Others: 15%- 30% on the cost.
CollateralHypothecation of stocks/book debts /assets acquired/Mortgage of business premises or property acquired out of loan amount.

Karnataka Bank Business Loan

If you want to stay in business for a long time, you need to keep improving your business strategy from time to time like upgrading technology or product, marketing, etc.

To meet all these requirements, you need money. Karnataka Bank Business loan can be a good option to meet all your business requirements.

Purpose of Karnataka Business Loan

  • For Working Capital requirements.
  • Establishment and/or improvement of the unit.
  • Repairs & renovations, acquiring machineries/vehicles/ equipment’s/ any fixed assets for the unit.
  • Purchase/acquiring of property (shop/factory/godown /office) for self-use.

Karnataka Bank Business Loan Eligibility & Requirements

  • All Micro, Small and Medium enterprises are eligible for business loan.
  • The applicant should be a resident of India.
  • He/ she should be attain age of majority.
  • The age of applicant plus loan period should be within 70 years.

Karnataka Bank Business Loan Required Documents

  • Application form
  • Id proof- Driving License, Passport, Voter Id card OR PAN card, Aadhar card.
  • Residence proof- Driving License, Passport, Voter Id card OR Ration card, Aadhar card, Electricity bill, Water bill.
  • Last 12 months bank statement.
  • Business proof- Registration certificate, Certificates of business existence.
  • Financial documents- Last two years ITR, Balance Sheet of the firm OR Profit and Loss statements.

Karnataka Bank Business Loan Types

There are various types of loans offered by the Karnataka Bank depending on your Business or Job profile.


Loan TypeFeatures/Description
KBL MSME LoanThis is mainly for Micro, small and medium enterprises.
Loan AmountMaximum – Rs.1500 lakh & Minimum – Rs. 10 lakh.
Loan TenureWorking capital loan OD (Over Draft) – up to 12/15/18 months, DPN (Demand Promissory Note) – 34 months
SecurityHypothecation of stocks/book debts /assets acquired/Mortgage of business premises or property acquired out of loan amount.

Collateral security of properties to be obtained shall not be less than 60% of the exposure and a Guarantee/co-obligation of a suitable third party.
RepaymentIn equal monthly installments + Interest
MarginCash margin of 25% of the loan amount.
New vehicles/Equipment’s/Projects/Others : 15%- 30% on the cost.
Interest Rate9.41 % p.a to 12.56 % p.a

KBL Commodity Pledge

Loan TypeFeatures/Description
KBL Commodity PledgeFor financing to traders and millers against pledge of their agricultural commodities purchased/processed by them (paid commodities) and stored/kept under Collateral Management arrangement.
Eligibility CriteriaIndividuals, HUF, Partnership firms, companies, and any other legal entities engaged in trading/processing of agricultural commodities for at least 3 years.
Loan AmountMaximum – Rs. 200 lakh & Minimum – Rs. 10 lakh.
Loan TenureThe period of loan shall be 3 months less than the validity period specified in the storage receipt or 12 months, whichever is less
SecurityPledge of the agricultural goods by way of deposit of original Storage Receipts, evidencing the stock of specified produce.
RepaymentLump-sum before the due date or at the time of the release of pledged goods, whichever is earlier.
The monthly interest is to be recovered when debited.
Interest Rate10.46 % p.a.

KBL Contractor Mitra

Loan TypeFeatures/Descriptions
KBL Contractor MitraThis loan is to Purchase new vehicles/second-hand vehicles (including JCB, tractors which are registered with RTA)

Purchase of new machineries required for civil contract activities.
Eligibility CriteriaIndividuals, Company, Partnership, LLP engaged in civil contract activities.
Loan AmountMaximum of Rs. 1000 lakh based on the Civil contractor
Loan TenureFor New Vehicle/Machineries = maximum is 84 months
For used vehicles = maximum up to 48 months
SecurityHypothecation of vehicle/machineries to be purchased
RepaymentIn Equated Monthly Installments (EMI)
MarginNew vehicles/machinery: 10%-15% on the cost.
Old vehicles: 30% of the cost
Interest Rate9.41 % p.a to 10.76 % p.a
An upfront charge will be there wherever applicable.

KBL Mortgage OD (Overdraft)

Loan TypeFeatures/Description
KBL Mortgage OD (overdraft)For meeting business/ professional/Working capital needs.
Eligibility CriteriaApplicant age should be above 21 years.
Customers/units eligible to be classified under Priority Sector(MSE) only.
Loan Amountminimum of Rs. 11 lakh and a maximum of Rs. 100 lakh.
Three times the average annual income of the last two years or 50% of the market value of the property (40 % in the case of industrial properties).
Loan Tenure12 months
SecurityMortgage of properties.
Guarantee of the spouse wherever applicable in case a third party is not available.
MarginUp to 33.33 %
Interest Rate11.09 p.a % to 12.29 % p.a

KBL Mahila Udyog – Business Loan For Woman

Loan TypeFeatures/Descriptions
KBL Mahila Udyog – Business Loan For WomanFor meeting credit requirement for any income-generating activity
It is helpful for women entrepreneurs.
EligibilityIndividuals (Women).
Firm/Company where at least 51% of the shareholding and controlling stake is held by Woman entrepreneurs.
Women from Self Help Group.
Loan AmountWorking Capital Loan = Maximum up to 2 lakh
Term Loan = Maximum up 10 lakh under the scheme.
Loan TenureOverdraft = 12 months
DPN (Demand Promissory Note) = up to 34 months.
Term loan = up to 120 months
SecurityHypothecation of assets created with Bank finance.
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) coverage wherever permissible.
RepaymentAs per overdraft rules if it is OD
DPN/TL = EMI+applicable interest
Margin15 % to 30 %
Interest Rate10.26 %

KBL – Xpress Micro Mitra Scheme

Loan TypeFeatures/Descriptions
KBL – Xpress Micro Mitra SchemeFund-based loan for working capital and purchase of machinery/equipment’s/transport vehicles.
Eligibility CriteriaAll Micro Enterprise.

The age of the applicant + Loan period should be within 70 years.

The investment in plant & machinery or equipment does not exceed Rs.100 lakh and turnover does not exceed Rs.500 lakh).

The applicant shall be our customer at least for the last 1 year with active SB or CA, with satisfactory transactions.

Minimum CIBIL Credit Vision score of 675 or CRIF score of 700.

For Non-individuals, the CRIF score shall be 700 and above.

Existing credit facilities of the client with us/other Banks if any, should not be in the NPA/Stress Category.

Purpose & activity shall be eligible for coverage under CGTMSE.
Loan AmountMinimum Rs. 10000 and Maximum Rs. 10 lakh
Loan TenureFor DPN (Demand Promissory Note) = up to 35 months
For 3 wheeler new vehicles = maximum 60 months
For 4 wheeler new vehicles = maximum 84 months
New Machineries/equipment’s = up to 60 months.
Used vehicles = maximum 60 months from date of the registration
SecurityHypothecation of stocks/book debts/assets/vehicles.
RepaymentIn EMI (Equated Monthly Installments)
MarginNew vehicles = 15% against on-road cost
New equipment’s/machineries = 25%
Used Vehicles = 30% (up to 3 years old)
Stocks/Book debts = 25%
Interest RateAs per EBLR (External Benchmark based Lending Rate) Guidelines

KBL- PM SvaNidhi (Working Capital For Street Vendors)

Loan TypeFeatures/Descriptions
KBL- PM SvaNidhi (Working Capital For Street Vendors)This loan is to provide working capital to street vendors to support their business. The scheme is formulated by the Ministry of Housing and Urban Affairs.
To incentivize regular repayment.
To reward digital transactions.
Loan AmountWorking capital loan up to Rs. 10000.
RepaymentRepayable in 12 EMIs (Equated Monthly Installments).
SubsidyThe vendors, availing of loans under the scheme, are eligible to get prompt repayment interest subsidy @ 7%.
Interest Rate11.59 % p.a
ChargesNo Charge

KBL – Quick Business Loan

Loan TypeFeatures/Description
KBL – Xpress Business Quick Loan – Quick Business LoanThe purpose of this loan is for business improvement activities like an advertisement, office furnishing, repair to equipment’s & fixed assets, etc.
Eligibility CriteriaThe borrower/ unit shall be any legal entity, conforming to MSME classification guidelines.
For individuals, the age of the applicant + Loan period should be within 70 years.
Credit Bureau score of 675 and above.
For Non-individuals, the CRIF score shall be 700 and above.
The MSMEs shall be a profit-making unit for the last 2 financial years and also regularly file the GST returns for the last 2 financial years.
Existing credit facilities of the borrower with us/with other Banks, if any, should not be in the NPA/ Stress category.
If the applicant’s earlier accounts turned as NPA/closed under OTS, such applicant’s application will not be entertained.
Loan TenureOverdraft = 12 months
DPN = up to 35 months
Loan Amountabove 10 lakh and up to 50 lakhs
SecurityMortgage of immovable properties shall be 100% of exposure.
Bank owns Deposits, NSCs, Life Insurance policies of an IRDA authorized company with a surrender value.
RepaymentEMI (Equal Monthly installments)
Interest Rate9.29 % p.a

How to Apply for Karnataka Bank Business Loan?

We have mainly three ways to apply for Karnataka Bank Business Loan.

By Visiting Bank Branch

You can visit the Karnataka Bank branch nearby along with the required documents. fill out the loan application form and apply for the business loan.

Applying Online

Visit the Karnataka Bank Business loan portal, choose the type of loan you want and then click on the Apply now button or Request a Callback.

Once you click on the request a callback, on the next page enter your personal details like name, contact number, PIN code, email address and click on the Submit button. You will get a call from Karnataka bank about the loan description.

Customer Care

Call Karnataka Bank customer care number 1800 425 1444, 1800 572 8031 (Toll-free), 080-2202 1500 (tolled) and discuss getting a business loan. Bank staff will explain the loan process as well.

How to Check Karnataka Bank Loan Application Status?

Once you have applied for the loan, how to check the status? follow the steps below.

By Visiting Bank Branch

  • Visit the Karnataka Bank nearest branch with the loan reference number you got after applying a loan.
  • Show it to the bank officials and know your loan application status.

By Calling Customer Care

Call Karnataka Bank customer care number 1800 425 1444, 1800 572 8031 (Toll-free), 080-2202 1500 (tolled), provide the loan reference number to the executives, and know your loan status.

Karnataka Bank Customer Care Details

Karnataka Bank Customer Care Number =

1800 425 1444, 1800 572 8031 (Toll free), 080-2202 1500 (tolled)


We have learned about Karnataka Bank business loans, types of business loans, Interest rates, How to check the loan status.

Karnataka Bank offers a wide variety of business loans to customers. you can opt for it if you need any business loan. Make sure to check all the fees and charges carefully before taking a business loan.

Read Also


1: What is an EMI?

EMI stands for Equated Monthly Installment. It is a fixed amount paid by the customer to the bank on a specific date every month. The EMIs contain both the interest and principal amount of a loan over a specific number of years.

2: What is EBLR?

EBLR stands for External Benchmark Lending Rate.

3: What is the Karnataka Bank Email address?

Send an email at info@ktkbank.com.

4: How to check the Karnataka bank loan application status?

Call Karnataka Bank customer care number 1800 425 1444, 1800 572 8031 (Toll-free), 080-2202 1500 (tolled), provide the loan reference number to the executives, and know your loan status.

5: What is the loan rates for all the Karnataka Bank loan?

Click here to check the Karnataka Bank Loan rates.

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