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 Amount | Maximum up to ₹1500 lakh |
| Loan Amount under CGTMSE | Maximum up to ₹200 lakh |
| Loan Tenure | Term loan up to 120 months |
| Loan Interest Rate | 9.41 p.a – 12.56 p.a |
| Cash Margin | 25% of the loan amount or New vehicles/Equipment’s/Projects/Others: 15%- 30% on the cost. |
| Collateral | Hypothecation of stocks/book debts /assets acquired/Mortgage of business premises or property acquired out of loan amount. |
Contents
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.
KBL MSME Loan
| Loan Type | Features/Description |
|---|---|
| KBL MSME Loan | This is mainly for Micro, small and medium enterprises. |
| Loan Amount | Maximum – Rs.1500 lakh & Minimum – Rs. 10 lakh. |
| Loan Tenure | Working capital loan OD (Over Draft) – up to 12/15/18 months, DPN (Demand Promissory Note) – 34 months |
| Security | Hypothecation 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. |
| Repayment | In equal monthly installments + Interest |
| Margin | Cash margin of 25% of the loan amount. New vehicles/Equipment’s/Projects/Others : 15%- 30% on the cost. |
| Interest Rate | 9.41 % p.a to 12.56 % p.a |
KBL Commodity Pledge
| Loan Type | Features/Description |
|---|---|
| KBL Commodity Pledge | For 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 Criteria | Individuals, HUF, Partnership firms, companies, and any other legal entities engaged in trading/processing of agricultural commodities for at least 3 years. |
| Loan Amount | Maximum – Rs. 200 lakh & Minimum – Rs. 10 lakh. |
| Loan Tenure | The period of loan shall be 3 months less than the validity period specified in the storage receipt or 12 months, whichever is less |
| Security | Pledge of the agricultural goods by way of deposit of original Storage Receipts, evidencing the stock of specified produce. |
| Repayment | Lump-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 Rate | 10.46 % p.a. |
KBL Contractor Mitra
| Loan Type | Features/Descriptions |
|---|---|
| KBL Contractor Mitra | This 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 Criteria | Individuals, Company, Partnership, LLP engaged in civil contract activities. |
| Loan Amount | Maximum of Rs. 1000 lakh based on the Civil contractor |
| Loan Tenure | For New Vehicle/Machineries = maximum is 84 months For used vehicles = maximum up to 48 months |
| Security | Hypothecation of vehicle/machineries to be purchased |
| Repayment | In Equated Monthly Installments (EMI) |
| Margin | New vehicles/machinery: 10%-15% on the cost. Old vehicles: 30% of the cost |
| Interest Rate | 9.41 % p.a to 10.76 % p.a An upfront charge will be there wherever applicable. |
KBL Mortgage OD (Overdraft)
| Loan Type | Features/Description |
|---|---|
| KBL Mortgage OD (overdraft) | For meeting business/ professional/Working capital needs. |
| Eligibility Criteria | Applicant age should be above 21 years. Customers/units eligible to be classified under Priority Sector(MSE) only. |
| Loan Amount | minimum 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 Tenure | 12 months |
| Security | Mortgage of properties. Guarantee of the spouse wherever applicable in case a third party is not available. |
| Margin | Up to 33.33 % |
| Interest Rate | 11.09 p.a % to 12.29 % p.a |
KBL Mahila Udyog – Business Loan For Woman
| Loan Type | Features/Descriptions |
|---|---|
| KBL Mahila Udyog – Business Loan For Woman | For meeting credit requirement for any income-generating activity It is helpful for women entrepreneurs. |
| Eligibility | Individuals (Women). Firm/Company where at least 51% of the shareholding and controlling stake is held by Woman entrepreneurs. Women from Self Help Group. |
| Loan Amount | Working Capital Loan = Maximum up to 2 lakh Term Loan = Maximum up 10 lakh under the scheme. |
| Loan Tenure | Overdraft = 12 months DPN (Demand Promissory Note) = up to 34 months. Term loan = up to 120 months |
| Security | Hypothecation of assets created with Bank finance. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) coverage wherever permissible. |
| Repayment | As per overdraft rules if it is OD DPN/TL = EMI+applicable interest |
| Margin | 15 % to 30 % |
| Interest Rate | 10.26 % |
KBL – Xpress Micro Mitra Scheme
| Loan Type | Features/Descriptions |
|---|---|
| KBL – Xpress Micro Mitra Scheme | Fund-based loan for working capital and purchase of machinery/equipment’s/transport vehicles. |
| Eligibility Criteria | All 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 Amount | Minimum Rs. 10000 and Maximum Rs. 10 lakh |
| Loan Tenure | For 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 |
| Security | Hypothecation of stocks/book debts/assets/vehicles. |
| Repayment | In EMI (Equated Monthly Installments) |
| Margin | New vehicles = 15% against on-road cost New equipment’s/machineries = 25% Used Vehicles = 30% (up to 3 years old) Stocks/Book debts = 25% |
| Interest Rate | As per EBLR (External Benchmark based Lending Rate) Guidelines |
KBL- PM SvaNidhi (Working Capital For Street Vendors)
| Loan Type | Features/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 Amount | Working capital loan up to Rs. 10000. |
| Repayment | Repayable in 12 EMIs (Equated Monthly Installments). |
| Subsidy | The vendors, availing of loans under the scheme, are eligible to get prompt repayment interest subsidy @ 7%. |
| Interest Rate | 11.59 % p.a |
| Charges | No Charge |
KBL – Quick Business Loan
| Loan Type | Features/Description |
|---|---|
| KBL – Xpress Business Quick Loan – Quick Business Loan | The purpose of this loan is for business improvement activities like an advertisement, office furnishing, repair to equipment’s & fixed assets, etc. |
| Eligibility Criteria | The 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 Tenure | Overdraft = 12 months DPN = up to 35 months |
| Loan Amount | above 10 lakh and up to 50 lakhs |
| Security | Mortgage of immovable properties shall be 100% of exposure. Bank owns Deposits, NSCs, Life Insurance policies of an IRDA authorized company with a surrender value. |
| Repayment | EMI (Equal Monthly installments) |
| Interest Rate | 9.29 % 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)
Conclusion
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
- Zavron Finance Business Loan | How to Apply for Business Loan at Zavron Finserv
- Nainital Bank Business Loan | Nainital Bank MSME Loan
- Aavas Financiers Business Loan | How to Apply for Aavas Business Loan
FAQs
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.
EBLR stands for External Benchmark Lending Rate.
Send an email at info@ktkbank.com.
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.
Click here to check the Karnataka Bank Loan rates.
