KBL Mortgage Overdraft Loan
Tailored for business owners and professionals seeking a flexible and effective way to finance your capital needs, this overdraft facility will be anchored in the security of mortgaged property, providing blend of simplicity and quick sanctioning. Perfect for those under the priority sector (MSE), this offers the financial agility needed in today's dynamic business world. With a competitive interest rate and a practical repayment structure, we are giving you the freedom to channel funds where they're needed most, from scaling operations to seizing new opportunities. Read more
Why this loan is for you
Designed to give you just what you need
This loan is exclusively for customers under priority sector (MSE)
Maximum finance up to ₹1 crore for diverse needs
Loan secured against residential or commercial property with fast sanctioning
Make matters simple and straightforward
A smart calculator for smart spending and savings
Emi Calculator
You will pay
₹13,800/Months
Eligibility criteria
- Individuals classified under Priority Sector (MSE).
- Individuals at least 21 years old
- Individual must be a resident of India
- Must own a residential or commericial property
- Spousal guarantee preferred, if applicable
Documents required
- Proof of identity of the applicants (PAN / Passport / Driver's license / Voter ID / Aadhaar card)
- Residence proof of address of applicant's and guarantor's (PAN / Passport / Driver's license / Voter ID / Aadhaar card, recent Telephone bill / Electricity bill / Property tax receipt)
- Proof of address and activity (Shops and Establishment license, GST registration, Rent/lease agreement and other licenses related to the activity)
- Latest audited financials for the last 2 years along with ITR
- Statement of loan accounts with other banks if any and sanction order copy
As easy as 1,2,3...
Apply for a KBL Mortgage OD 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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Got questions? We’ve got answers.
You need to mortgage residential or commercial properties. Industrial and agricultural properties are not accepted. Additionally, a guarantee from a third party or family member acceptable to the bank is required.
Margin money, or down payment, is the amount you pay upfront, usually 33% of the property's cost. This is a standard practice in banking, ensuring you have a stake in the mortgaged property.
For residential or commercial properties, a down payment of 33% is required. If the property is already mortgaged, the surplus value over 110% of the existing liability should suffice.
The bank charges a processing fee or upfront fee. This includes charges for legal, valuation, and background information reports.
An overdraft facility lets you withdraw money up to a pre-determined limit even when your account balance is zero. You pay interest only on the amount used. Unlike regular loans, there are no prepayment charges, and you can repay in flexible amounts.
EMI, or Equated Monthly Instalment, is a fixed payment made monthly, covering both the interest and principal of a loan, ensuring complete repayment over a set period.
To be eligible, you must be classified under the Priority Sector (MSE). This typically includes micro, small, or medium enterprises as per defined investment and turnover criteria, such as retail and wholesale traders registered on the Udyam Registration Portal.
The classification is based on investment and turnover criteria. Micro enterprises have investment up to ₹1 crore and turnover up to ₹5 crore, small enterprises up to ₹10 crore in investment and ₹50 crore in turnover, and medium enterprises up to ₹50 crore in investment and ₹250 crore in turnover.
You need to provide a mortgage on your residential or commercial properties.
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.
With KBL Mortgage Overdraft Loan, leverage your property to secure an overdraft against property, providing a flexible credit solution for your business needs. This facility, often at a competitive overdraft against property interest rate, allows you to tap into funds as and when required, ensuring liquidity for your business operations.
The interest on overdraft facilities is charged only on the amount utilized, not on the total credit limit. These rates are usually higher than regular loans and depend on factors like the overdraft amount and the business’s credit history. Understanding these rates is vital before you start your loan application process.
Do use the overdraft facility judiciously for short-term financial needs. Monitor your account to avoid overextending the facility. Don't neglect the repayment; regularize the account at the earliest opportunity. Ensure clarity on terms and conditions when you apply for an overdraft business scheme online.
