Looking for a small business loan for your working capital needs from Karur Vysya Bank?
Get all the information you need on the Karur Vysya Bank working capital loan for small businesses below.
Karur Vysya Bank KVB MSME Vendor Bill Discounting
This loan scheme comes under the umbrella loan scheme called KVB MSME Pack designed to help small businesses meet their working capital, capital expenditure and other business needs. The KVB MSME Vendor Bill Discounting scheme is meant for small businesses to get access to funds to meet their working capital needs by using Usance Bills.
Features of KVB MSME Vendor Bill Discounting Loan
Why this Loan?
- The Karur Vysya Bank KVB MSME Vendor Bill Discounting loan scheme can be availed by small businesses for all projects and activities related to running the business on a day-to-day basis
- This is a need-based loan which means that the loan amount sanctioned depends on Usance bills
Loan Amount
- The quantum of loan sanctioned under this loan depends on usance bills
Interest
- The applicable interest rate on Karur Vysya Bank MSME loans is defined as the sum of two factors viz. One-year Marginal Cost of Funds based Lending Rate (MCLR) and a Credit-Linked Premium where the Credit-Linked Premium is directly influenced by the Risk-Based Credit Score of the applicant. As of now, the interest rate for KVB MSME loan ranges from “MCLR + 0%” to “MCLR + 14.80%”
Repayment
- This loan must be repaid within 2 years or the tenure of the usance bill, whichever is less
Security Needed
- The bank asks for bills drawn on reputed companies or public-sector units with a proof of dispatch of goods and delivery
- The bank may also ask for hypothecation of immovable or tangible assets with at least 75% of minimum exposure
- The bank may also ask for a third-party guarantee
Borrower’s Contribution to Total Cost (Margin Money)
- The bank charges a minimum of 15% of the total loan amount as margin for this loan
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issue Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
- For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable
Reference Facts:
- Karur Vysya Bank Website: www.kvb.co.in
- Headquarters: Karur, Tamil Nadu
- Call Centre Number: 1860 258 1916 (Local charges apply)