Spectrum of Advances



(Education Loan Scheme)

Who is eligible?

Any student, representing himself / herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional / technical / other course, in India or abroad.

What are the courses eligible for finance?

Studies in India: Graduate Courses - B.A., B.Sc., B.Com., B.C.A., B.B.M., Diploma in Engineering, Post Graduate Courses - Masters and Ph.D; Professional Courses - Engineering, Medical, Agriculture, Nursing, Veterinary, Law, Dental, Management, Computer, Pharmacy, Physiotherapy, Hotel Management, ICWA, CA, CFA; Courses conducted by IIM, IIT, XLRI, NIFT; Courses offered in India by reputed foreign universities; Evening Courses of approved Institutes; Other Courses leading to Diploma / Degree conducted by Colleges / Universities approved by UGC / GOVT. / AICTE / AIBMS / ICMR; Courses offered by National Institutes and other reputed private Institutions.

Studies Abroad: Graduation - Only for job oriented professional / technical courses offered by the reputed Universities; Post Graduation - MCA, MBA, MS; Courses conducted by CIMA-London, CPA in USA etc.

What is the amount of loan available?

For studies in India - a maximum of Rs.10 lakh.

For studies abroad - a maximum of Rs.20 lakh.

What kind of expenses does the loan cover?

Tuition Fees, Hostel Fees and Boarding and Lodging Fees if resident outside Hostel; Examination / Laboratory and Library Fees; Purchase of Books / Study material / Equipment and Uniforms; Caution Deposit / Building Fund / Refundable Deposits (supported by Receipts issued by the Institution); Travel expenses / passage money for study abroad; Purchase of Computer if certified as essential for completion of course; other expenses like Project Work, Study Tour and Thesis, which are necessary for completion of course.


What is the amount of margin money required?

Loan upto Rs.4 lakh: No margin required.

Loan above Rs.4 lakh: 5% for studies in India and 15% for studies abroad. Scholarship / apprenticeship may be reckoned as part of margin. Margin may be brought in on year-to-year basis as and when disbursements are made, on a pro-rata basis.


Up to Rs.4 lakh: No security.

Above Rs.4 lakh and upto Rs.7.50 lakh: Collateral in the form of a suitable third party guarantee.

Above Rs.7.50 lakh: Collateral security of suitable value or suitable third party guarantee along with the assignment of future income of the student for payment of instalments.


* The loan documents should be executed by both student and the parent / guardian as joint-borrowers.

* The security can be in the form of land / building / Govt. securities / Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of student / parent / guardian or any other third party with suitable margin.

* Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.

* In case the loan is given for purchase of computer the same has to be hypothecated to the Bank.

What is the period for repayment of the loan?

The loan shall be repaid in 5 to 7 years after commencement of repayment. If the student secures employment during the holiday period, the repayment schedule should be advanced to commence immediately.

The completion of the course includes internship or apprenticeship if compulsory for award of Degree. If the student does not complete the course within the scheduled period, a maximum period of 2 years is permitted for completion. If the student is unable to complete the course for reasons beyond his control then extension may be granted if deemed necessary to complete the course.

The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed.

Rate of interest: Click Here for Latest Rate of Interest


KBL EASY RIDE( For Two Wheelers)

Who is Eligible?

I. Individuals

a) Within the age limit of 21 to 55 years in case of salaried persons and 21 to 60 years in case of businessmen / professionals / self employed persons.

b) Confirmed employee in the case of salaried person. Businessman should be in business for minimum period of 1 year.

c) Salaried person must have gross monthly salary of Rs.4,500/- and businessman monthly income of Rs.3,500/- .

d) Undertaking letter shall be furnished to the effect that the vehicle will be driven by valid license holder only.

II.A company / firm, availing the loan in its name or in the name of executive / managing director / managing partner.

Amount of Loan:

Upto 15 times net take home salary (in the case of salaried person) / declared annual gross income (in the case of professionals / businessmen / self employed person), or 100% of the invoice value of the vehicle whichever is lower. Road tax and insurance to be borne by the borrower.

Maximum amount of loan Rs.100,000/-.

Period :Upto 60 months.

Repayment:By equal / equated monthly instalments.


a) Hypothecation of vehicle to be purchased.

b) Solvent co-obligant / guarantor.

Documents Required

Proof of income (Salary certificate, income tax returns / assessment orders, audited financial statements etc.).


Rate of interest: Click Here for Latest Rate of Interest



KBL CAR FINANCE (For New and Second Hand Cars)

Who is Eligible?

a) An individual who is an income tax assessee.

b) A company / firm/ trust/ association/societies availing the loan in its name or in the name of its executive / managing director / managing partner/managing trustee/president/secretory.

c) NRIs are also eligible.


Purchase of new vehicle / second hand vehicle not older than 3 years from the date of its registration.

Amount of Loan:

Upto 85% of the invoice value excluding road tax and insurance for new vehicles.

Maximum of Rs.15 lakh in the case of second hand / used vehicle.


Upto 60 months (new vehicle) and 34 months (second hand vehicle).


a) Hypothecation of vehicle to be purchased.

b) Third party co-obligation / guarantee in the case of individual.


Rate of interest: Click Here for Latest Rate of Interest



KBL Salaried Persons Loan (Scheme for Financing Salaried persons)

Who is Eligible?

Permanent employees of listed companies, schools, colleges and universities aged not over 55 years and having a minimum remaining service of 3 years.


a) Purchase of household articles / consumer durables.

b) Children's education.

c) Marriage and thread ceremony of self / dependants.

d) Medical expenses of self / dependants.

e) Obsequies expenses.

f) Repair of own house.


Amount of Loan:

Maximum 10 times of monthly gross salary. Maximum quantum of loan is Rs.5 lakh.

Period of Loan: Upto 5 years.



Up to Rs 2.00 Lakh - Co-obligation of solvent party / co-employee who should be a permanent employee of reputed companies, schools, colleges or universities.

Above Rs 2.00 Lakh - Co-obligation of solvent party / co-employee who should be a permanent employee of reputed companies, schools, colleges or universities and Liquid security of LIC policies(SV), NSC, deposits to the extent of 25% of the limit


Rate of interest: Click Here for Latest Rate of Interest


K-POWER (Personal Loans)

Who is Eligible?

Any individual having SB/CA is eligible. He could be a salaried employee, a professional or even someone receiving regular income from rent, pension etc.

What is the maximum amount one can draw using this facility?

Depending upon the limit fixed by your Branch Manager, you can draw upto Rs. 25,000/- in multiple of Rs.1,000/-. The withdrawal can be made through ATM.



12 months subject to renewal / review before due date.


Rate of interest: Click Here for Latest Rate of Interest



KBL INSTA CASH (For Consumption Purposes)

Who is eligible?

Any individual between the age of 18 years and above, Hindu Undivided Family business, Joint Borrowers or Partnership Firms are eligible for this loan.


What is the Amount of Loan Available?

A minimum of Rs.5,000/-. Maximum of Rs.25 lakh.



The maximum period is 60 months and 24 months for the Over Draft facility. Interest should be remitted monthly. The loan may be repaid on the due date as a lump sum or monthly / quarterly / half yearly / yearly installments, as per your convenience.



You would be required to pledge NSCs / Kisan Vikas Patras which have completed at least one year of which unexpired period of maturity should be three years or less, 4 years or less, 5 years or less and assignment of Life Insurance policies with surrender value or of other companies licensed by Insurance Regulatory Development Authority.


Rate of interest: Click Here for Latest Rate of Interest




Who is Eligible ?

a) Individuals who are residents of India.

b) Salaried persons aged 21 years and above. They should be in confirmed service in the present employment and must have total regular employment for a minimum period of 3 years and a minimum gross monthly salary of Rs. 6000/-.

c) Businessmen / Professionals / self employed persons aged 21 years and above. Further, the period of loan plus age of the borrower should not exceed 70 years. They should be in business for a minimum period of 3 years and a minimum gross annual income of Rs.60,000/-.


a)Construction / purchase of house / flat.

b) Renovation / remodeling / repair to existing house / flat.

Amount of Finance:

For purchase / construction

a) 60 times the last drawn monthly take home (net) salary in case of salaried persons Or

b) 5 times the latest annual net income + depreciation provided, if any, as per Profit & Loss A/c in case of traders / professionals / self employed persons Or

c) Rs.50 lakh.

whichever is lower.

For renovation / repairs:

Upto Rs.10 lakh or 40% of the value of the house / flat, whichever is lower.

Period of Loan:

Upto 15 years. Repayment holiday upto 18 months considered.


a) Mortgage of house property to be constructed / purchased / repaired / remodeled / renovated.

b) Guarantee of the spouse wherever feasible in the absence of which third party solvent guarantor.


In equal / equated monthly installments (EMIs).


20% for construction of a house on a land already owned.

25% of the total cost in the case of a house / flat not older than 5 years.

30% of the total cost in the case of a house / flat over 5 years old but not older than 20 years.

30% of the cost for renovation / repair, subject to maintaining 40% margin on the value of the house / flat.

Other Information:

  1. L How rate of interest will change if interest rate is linked to PLR: Interest is linked to PLR and any revision in PLR will lead to revision of interest rates on the loan also. Interest rats on loan account will increase / decrease with the increase / decrease of PLR, proportionately.
  2. Meaning of Co-obligant / guarantor: Co-obligant / guarantor is a person who undertakes to repay the loan on default of the principal borrower. His liability is co-extensive with that of the principal debtor i.e, to say the amount of his liability will be the same that of the principal borrower and the Bank will proceed against him for recovery along with the principal borrower. He cannot say that his liability will come only after the remedies against the principal borrower are exhausted.
  3. Time required for processing and sanctions of loans: Loan applications (inland credit) will be disposed off within 15 working days if sanction is at branch level, within 30 working days if sanction is at RO level and within 45 working days if sanction is at HO level after receipt of all required information from the applicant.
  4. Option for pre-payment / closure of loan account: Option for pre-payment / closure of loan account is available. Pre-closure charges will be levied at rates as decided by the Bank from time to time.
  5. Effect of missing installment: Non-payment of installment as per agreed terms will adversely affect credit rating and credit history of the borrower besides attracting penal interest.
  6. Circumstances in which the Bank is entitled to recall the entire loan: The bank reserves the right to recall the entire loan when

a) The bank finds that the loan amount is misused.

b) The repayment is not forthcoming as per agreed terms

  1. Penalty for non-payment of installment: 2% penalty will be charged on installment amount not paid.
  2. Method of calculation of interest: Interest is charged on daily balance method and is debited once in a month. Installment amount not paid on its due date will attract 2% penalty over and above the sanctioned rate.
  3. When details of loan account will be passed on a credit Reference Agencies: Details of all the willful defaulters is reported to credit reference agency i.e. CIBIL on monthly basis. Before referring the case, the borrower will be suitably advised about the proposal to classify him as willful defaulter along with the reasons thereof. He will also be informed about consequences of referring to CIBIL. The concerned borrower is provided reasonable time (i.e. 15 days) for making representation against such decision, if he so desires, to a Committee headed by the Chairman and Managing Director.