Looking for a Small Business Loan from Karnataka Bank?

You have landed at the right place. On this page, you will find all the information you need to make a sensible and sound decision.

MSME Loans from Karnataka Bank

Also known as one of the ‘A’ class scheduled commercial banks in India, Karnataka Bank Limited (KBL) offers a wide range of finance products to different segments of its customer base. The bank has a wide array of funded and non-funded facilities for its retail, corporate, MSME, NRI and other customers. As of now, the bank offers two loans to its MSME customers to help them meet their working capital, capital expenditure and other needs.

The two MSME Loans from Karnataka Bank are:

  1. KBL MSME Loan
  2. KBL Mortgage Loan

We give you a brief intro to the business loans below. In addition, you have the option to click further and read in detail about the loans in a specific page of their own. This specific page has been made specifically for you to get all the information you need on that loan in an uncluttered and easy-to-read format.

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.

Karnataka Bank KBL Mortgage Loan OD

This loan helps business owners raise capital towards expanding their business by mortgaging a residential, commercial or industrial property. The maximum loan amount sanctioned under this loan is Rs. 5 crore.

Features of Karnataka Bank Mortgage Loan for Business

Why this Loan?

  • The Karnataka Bank Mortgage Loan is perfect for businesses in the Micro and Small Enterprise sector to get access to funds for business growth and expansion-related activities by mortgaging property
  • The loan must be repaid within 12 months

Important Note: Even though the bank’s website has information available for fewer MSME loan schemes at this time, there is a possibility that the bank may offer more corporate loan options which are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.


Interest Rate

  • The exact applicable interest rate on each one of the Karnataka Bank MSME loans is not mentioned on the bank’s website. They have provided the range since the actual interest rate is decided by the bank on a case-to-case basis depending on various factors. Check out the Karnataka Bank MSME Loan Interest Rates on the bank’s website

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