KBL MSME Loan
Designed for micro, small, or medium enterprises (MSME), this scheme offers a blend of flexibility, speed, and support, essential for dynamic business environments. Our loans provide the financial backing you need to thrive. From expanding your operations to upgrading equipment, these loans are versatile, with interest rate linked to EBLR. We finance the next generation of modern entrepreneurs, to ensure your business never misses an opportunity for growth. Choose us for a partner in your business journey and take your business to new heights with extra support and flexible terms. Read more
Why this loan is for you
Designed to give you just what you need
Flexible repayment options and tenure for your comfort
Collateral-free options under CGTMSE for eligible businesses
Quick approvals for instant financial support with a digital-first process
Make matters simple and straightforward
A smart calculator for smart spending and savings
Emi Calculator
You will pay
₹13,800/Months
Eligibility criteria
Must be atleast 18 years old with maximum age limit of 70 years and an Indian resident, this includes traders, operators, service providers among others
- Legally recognized entity under MSME guidelines
- Open to manufacturing, production and service sector enterprises.
- Business within specified MSME investment and turnover limits.
Documents required
- Udyam registration certificate
- Aadhaar card, Voter’s ID, passport, driving license, PAN card
- Telephone bills, electricity bill, property tax receipt
- Business address proof
- Banking history
- Financial statements, balance sheets and tax returns
- Compulsory audits for large exposure
- Company profile with details
- Group financials and balance sheets
- Project reports with details of machinery and financial projections
- Business review with month-wise sales, production, raw material details
As easy as 1,2,3...
Apply for a KBL MSME 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.
The KBL MSME Scheme is designed to support a variety of business needs. It's ideal for managing working capital, acquiring machinery or vehicles, making repairs or renovations, and even for purchasing property for business use like shops, factories, or offices. This flexibility makes it suitable for businesses at different stages, whether you are looking to grow, diversify, or just maintain your enterprise.
Under this scheme, you can borrow up to ₹1500 lakh. However, if your loan is eligible under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), you can get up to ₹200 lakh without collateral. This feature is particularly beneficial for smaller businesses that may not have sufficient collateral.
The scheme offers competitive interest rates linked to EBLR. These rates are designed to be affordable for MSMEs and are influenced by various factors including market conditions and the bank’s internal policies. It's important to note that the actual rate applicable to you might vary based on your business’s financial health and creditworthiness.
The tenure options are quite flexible. For working capital overdrafts, the tenure can be up to 18 months. For term loans, the tenure can extend up to 120 months, providing ample time for repayment and easing the pressure on your cash flow.
The Overdraft facility allows you to withdraw funds up to a certain limit over and above your account balance. This is particularly useful for managing short-term liquidity or unexpected expenses. It offers the flexibility of repaying the amount used at your convenience within the agreed tenure, which can be up to 18 months in this scheme.
Collateral requirements include the hypothecation of stocks, book debts, or assets acquired with the loan. Additionally, a mortgage of business premises or property may be required. The bank mandates that the collateral security should be at least 60% of the loan exposure, ensuring a secure backing for the loan.
Yes, for loans up to ₹10 lakh under the CGTMSE, collateral is not required. This feature makes the scheme accessible to smaller businesses that might not have significant assets to offer as security.
Eligibility includes any legal entity that conforms to the MSME classification. This encompasses micro enterprises with investments up to ₹1 crore, small enterprises up to ₹10 crores, and medium enterprises up to ₹50 crores. The scheme is inclusive, covering a wide range of sectors including manufacturing, services, traders, and transport operators.
The repayment options are designed for flexibility. You can choose to repay in equal monthly installments, with interest as and when debited, or through an Equated Monthly Installment (EMI) plan. This flexibility allows you to manage your cash flow more effectively and choose a repayment schedule that suits your business's financial cycle.
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.
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.
MSME loans are designed to support the financing needs of micro, small, and medium enterprises. They are instrumental in helping MSMEs grow, covering expenses like equipment purchase, business expansion, and working capital needs. These loans often come with favorable terms and government support. Prospective borrowers can easily apply for an MSME loan online, simplifying the process of obtaining financial assistance.
Interest rates on MSME loans are generally competitive, considering the sector's significance in the economy. The rate depends on factors like the business's financial health, loan amount, and tenure. It's important to understand these rates and their impact on repayments as you start your loan application process. For swift financial support. Empower your MSME with the KBL MSME Loan, tailored to provide MSME loan for new business ventures. Our scheme offers a comprehensive MSME loan package that includes a MSME loan scheme to fit your business size and sector, with an accessible MSME loan apply process and the option to manage your MSME loan online.
Do keep your financial records and business plan up-to-date for the loan application. Regularly monitor your business credit score. Don't ignore the loan's terms and conditions, and avoid over-leveraging your business. Be prompt in responding to any queries during the loan application process.
