Looking for a Small Business Loan for Business Expansion or Working Capital Needs from Karnataka Bank?
Get all the information you need on the business loans for working capital or business expansion below.
Karnataka Bank KBL MSME Loan
This is an umbrella loan scheme for small businesses in the manufacturing, production, processing/preservation of goods and services sector that fit in the MSME definition. It is perfect for small businesses to meet their working capital and capital expenditure needs. KBL offers collateral-free loans up to Rs. 10 lakh under this scheme.
Features of KBL MSME Loan
Why this Loan?
- The Karnataka Bank KBL MSME Loan is perfect for MSME businesses in the manufacturing, services and trading sector to meet their working capital, capital expenditure and other needs directly related to the business
- The bank extends this loan as working capital loan, term loan, vehicle loan, project finance, etc.
Loan Amount
- The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 15 crore. However, if the loan is availed to purchase vehicles for business use, the maximum loan amount is capped at Rs. 1 crore
Interest
- As of now, the interest rate charged by the bank for this loan ranges anywhere from 9.32% to 12.45%
Repayment
- Term Loan: This loan must be repaid within 10 years
- Working Capital: This loan must be repaid within 1.5 years. The actual repayment period can be anywhere from 12 months to 18 months
Security Needed
- The bank asks for hypothecation of assets created with bank finance as security for this loan
- The bank may also ask for hypothecation of stocks, book debts, etc. for a working capital loan and collateral security of immovable property for a term loan
- The bank may also ask for a third-party guarantee
Borrower’s Contribution to Total Cost (Margin Money)
- Working Capital Loan: The bank charges 25% as margin for this loan
- Term Loan and other Loans: The bank charges anywhere from 15% to 30% 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
- Karnataka Bank Website: www.karnatakabank.com
- Headquarters: Mangalore, Karnataka
- Call Centre Toll-Free Number: 1800 425 1444