Karnataka Bank KBL Suvidha OD Secured Personal Loan

Thinking of availing a Personal Loan to pay off your debts?

The personal loan from Karnataka Bank might just be the right choice for you

Karnataka Bank KBL Suvidha Overdraft (OD) Scheme

This overdraft scheme is specifically designed for salaried employees or pensioners of govt. organisations and reputed private organisations to help them get funds to meet their urgent financial needs. This loan scheme can also be availed as a consolidation loan to pay off high-interest debts.

Features of Karnataka Bank Secured Personal Loan

Why this Loan?

  • The Karnataka Bank KBL Suvidha OD scheme is meant for salaried employees or pensioners of government units/institutions or salaried employees of reputed private organisations who need financial assistance to meet their personal needs. The borrowers must hold an account with KBL to be eligible for this loan
  • The overdraft facility can also be repurposed into a consolidation loan to pay off debts

Loan Amount

  • The maximum loan amount offered under this loan scheme is up to Rs. 25 lakh. The actual loan amount depends on the average annual income of the borrower


  • As of October 2020, the interest rate applicable to this loan scheme is 12.45%


  • This loan must be repaid within 2 years


  • The borrower must be a resident Indian above the age of 21 years
  • Salaried employees/pensioners of Public Sector Undertakings, Central Government or State Government units, reputed corporate entities, etc. holding an account with KBL are eligible for this loan

Margin Money (Borrower’s Contribution to Total Cost)

  • The bank charges up to 33% on the value of security for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, and margin is 20%, then you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Security Needed

  • The bank asks for equitable/registered mortgage of property to secure this loan
  • The bank may also ask for third-party guarantee depending on a case-to-case basis

Processing Charges

  • As of June 2020, this information is not mentioned on the bank’s website. We suggest calling up the bank to get in touch with their representative to get more details

Documents Needed

  • 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 Issuing 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 for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns, Last 6 months bank statement
  • Income/Banking Proof for Self-employed Professionals/Self-employed Non Professionals: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Reference Facts

  • Karnataka Bank Website: www.karnatakabank.com
  • Headquarters: Mangalore, Karnataka
  • Call Centre Toll-Free Number: 1800 425 1444