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 Easy Loan
This loan scheme is designed to help businesses in the Micro and Small Enterprises sector meet their working capital, capital expenditure and other business needs. The businesses that fit the MSE definition and have a turnover less than Rs. 1 crore are eligible for this loan.
Features of KVB Easy Loan
Why this Loan?
- The Karur Vysya Bank KVB MSME Easy Loan scheme can be availed by small businesses for all projects and activities related to running the business whether they are short-term or long-term needs
- The bank extends this loan as Cash Credit, Secured Overdraft, Bank Guarantee, Letter of Credit, etc.
Loan Amount
- Cash Credit/Letter of Credit: The maximum loan amount offered under this loan scheme is Rs. 20 lakh
- Bank Guarantee: The maximum loan amount offered under this loan scheme is Rs. 10 lakh
- Loan for Purchase of Equipment/Machinery/Vehicle: The maximum loan amount offered under this loan scheme is Rs. 20 lakh
- The businesses can avail a composite loan for all their needs but the total loan amount for working capital, term loan and equipment/machinery/vehicle loan should be less than Rs. 50 lakh
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
- Working Capital/Cash Credit/Secured Overdraft/Letter of Credit/Bank Guarantee: These loans must be repaid within 1 year. They can be renewed on an annual basis subject to terms
- Vehicle/Machinery/Equipment Loan: These loans must be repaid in 3 to 7 years
Security Needed
- Cash Credit/Letter of Credit/Bank Guarantee: The bank asks for the hypothecation of stock of raw material, stock in-process, semi-finished and finished goods as well as receivables as primary security for this loan. The bank also asks for collateral security of immovable property with at least 100% aggregate exposure or CGTMSE cover guarantee. The bank may also ask for a third-party guarantee
- Loan for Equipment/Machinery/Vehicle Purchase: The bank asks for the hypothecation of all assets created with bank finance as security for this loan. The bank also asks for collateral security of immovable property with at least 100% aggregate exposure or CGTMSE cover. The bank may also ask for a third-party guarantee
- Secured Overdraft: The bank asks for the hypothecation of all immovable property with at least 150% aggregate exposure as primary security. The bank may also ask for hypothecation of all current assets of the business and a third-party guarantee
Borrower’s Contribution to Total Cost (Margin Money)
- Loans up to Rs. 5 lakh: The bank does not charge any margin on loans up to Rs. 5 lakh
- Loans Above Rs. 5 lakh: The bank gives 25% concession on applicable processing charges to MSE businesses. However, the actual processing charges for these types of loans are not mentioned 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
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
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
Reference Facts:
- Karur Vysya Bank Website: www.kvb.co.in
- Headquarters: Karur, Tamil Nadu
- Call Centre Number: 1860 258 1916 (Local charges apply)