KBL Micro Mitra Loan

This loan is a game-changer for micro entrepreneurs seeking to grow their businesses. Whether you need working capital or funds to purchase machinery, equipment, or transport vehicles, this loan scheme is crafted for your needs. Offering loans from as little as ₹10,000 to up to ₹10 lakh, it's perfect for small-scale business enhancements. Tailored specifically for micro enterprises, this scheme ensures that your investment in plant and machinery aligns with your business growth. With KBL, you get a financial partner who understands and supports your entrepreneurial journey, making this scheme an ideal choice for micro business owners.. Read more

Why this loan is for you

Designed to give you just what you need

Designed exclusively for micro enterprises' unique needs

Finance new/used vehicles, machineries, or equipment for your business

Eligible for coverage under CGTMSE scheme

PS DPN repayment

Repayable in EMIs, providing a structured and predictable repayment plan for up to 35 months.

PSTL repayment

Repayable through EMIs, offering a consistent payment structure that aligns with your financial planning.

Down payment

For new vehicles, a down payment of 15% against the on-road cost is required. New equipment and machinery require a 25% down payment, and used vehicles (up to 3 years old) need a 30% down payment. Stocks and book debts necessitate a 25% margin.

Loan amount

We finance amounts ranging from ₹10,000 to ₹10 lakh.

Flexible interest and tenure

We offer interest rates aligned with EBLR for affordability and adaptable tenures up to 84 months, tailored to the type of asset financed

Hypothecation required

Stocks, book debts, assets, or vehicles must be hypothecated.

Full value coverage

We require the collateral to cover the entire loan value for security.

Make matters simple and straightforward

A smart calculator for smart spending and savings

Emi Calculator

Loan amount
25000 1000000
Rate of interest
2% 18%
Loan tenure
1 Months 60 Months

You will pay

₹13,800/Months

Not sure which product is for you?

Let’s find the best fit together

  • No spam calls
  • Dedicated KBL experts
  • Set up a call on your time

Eligibility criteria

Individuals
  • Indian individuals whose loan period plus age adds 
    up to 70
  • An existing Karnataka Bank customer for 1 year
  • A minimum credit score of 675
  • No NPAs or closed OTS accounts
  • No defaults on previous loans
  • A minimum credit score of 700
  • No NPAs 

Documents required

  • Udyam registration certificate
  • Proof of identity for firm (PAN, Registered partnership deed, MOA & AOA, Registered Trust deed / LLP agreement, etc.)
  • Proof of address and activity (Shops and Establishment license, GST registration, Rent/lease agreement and other licenses related to the activity)
  • For individuals CIBIL score should be at least 675 and CRIF score should be at least 700
  • For non-individuals CRIF score should be 700 and above
  • Applicant should be a customer of Karnataka Bank for at least 1 year with satisfactory transactions

As easy as 1,2,3...

Apply for a KBL Micro Mitra Loan in 3 simple steps

Step 1

Visit your nearest branch

Go to your nearest Karnataka Bank branch

Step 2

Start with your basic details

Provide your basic details and keep your documents handy

Step 3

We’ll take care of the rest

Our branch officials will notify you when your loan is sanctioned

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Explore other options for you

Trusted by thousands and handpicked for financial excellence

KBL Business Quick Loan

  • Up to ₹50 lakh max loan amount
  • Interest rate starting at 10.43*% p.a.
  • Up to 35 months loan tenure

KBL MSME Loan

  • Up to ₹15 crore max loan amount
  • Interest rate linked to EBLR
  • Up to 120 months loan tenure

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Got questions? We’ve got answers.

What can this loan be used for?

This loan is tailored for micro entrepreneurs, providing fund-based loans for working capital and purchase of machinery, equipment, or
transport vehicles.

The loan amount ranges from a minimum of ₹10,000 to a maximum of ₹10 lakh, catering to various scales of business requirements.

Under the CGTMSE scheme, the maximum credit amount capped is ₹5 crores. The extent of guarantee cover varies based on the type and size of the enterprise, as well as the region, with specific provisions for women-owned businesses and enterprises in the North East Region.

In the context of Karnataka Bank's loans, EBLR or External Benchmark Lending Rate is a crucial reference rate. It's essentially the standard against which the interest rates of loans are gauged and adjusted. This rate is determined by external market factors and serves as a transparent and dynamic benchmark. By tying loan interest rates to the EBLR, we ensure that loan pricing is fair, responsive to market conditions, and in line with regulatory guidelines, providing a clear and consistent basis for borrowers to understand how their loan interest rates are set.

CGTMSE, or Credit Guarantee Fund Trust for Micro and Small Enterprises, is designed to support first-generation entrepreneurs by offering credit guarantees for collateral-free loans. It covers loans up to ₹5 crores, with guarantee coverage varying from 75% to 85%, depending on the enterprise type. This scheme enables easier credit access for small businesses and encourages financial institutions to lend without requiring third-party guarantees or collateral"​​​.

All micro entrepreneurs as defined by MSME are eligible. Individual applicants should be Indian residents, aged within 70 years when combined with the loan period. Activities should be eligible under CGTMSE.

If repayment challenges arise, we encourage prompt communication with us to explore feasible solutions and maintain financial integrity.

We charge standard upfront fees and processing charges, covering legal, valuation, and background information expenses.

We prioritize expedient loan processing, understanding the importance of timely financial support for your business aspirations.

Prepayment is an option available to you, potentially reducing your interest obligations. We advise discussing this with us to understanding terms and conditions of the loan.

There is no processing fee for loans up to ₹5 lakhs. A processing fees of up to 0.50% would be applicable on loans above ₹5 lakhs.

The advantages of a micro business loan

Our business loans known for being among the best small business loans available. Tailored to the unique challenges of micro-enterprises, this scheme is a source of robust small business finance. If you're ready to take the next step, apply for small business loan options under this scheme to fuel your business ambitions.

Do prepare a solid business plan to support your loan application. Keep your financial documents organized and updated for the application process. Don't underestimate the importance of reading and understanding the loan agreement, particularly the repayment terms and any associated fees.