Overdraft Security Deposit
A robust financial solution designed specifically for civil contractors working on infrastructure projects. Recognizing the unique demands of your industry, this scheme facilitates the issuance of fixed deposit receipts (FDRs) in lieu of bank guarantees, ensuring your projects have the financial backing they need. With competitive interest rates and a straightforward 10% cash margin, our scheme streamlines your financial management, allowing you to focus on what you do best: building and executing vital infrastructure. We’re here to support your journey with financial solutions that understand and cater to the specific needs of civil contracting, reinforcing your ventures with stability and trust. Read more
Why this deposit is for you
Designed to give you just what you need
Loan tenure matches your working capital account’s due date
Fixed deposit receipts issued in the beneficiary's name for security
Exclusively designed for civil contractors in infrastructure
Make matters simple and straightforward
A smart calculator for smart spending and savings
Eligibility criteria
- Individuals who are resident of India
- Civil contractors in infrastructure construction
- Must be least 3 years in the sector
- Must be an existing Karnataka Bank customer with proven financial dealings.
Documents required
- Proof of identity for firm (PAN, Aadhaar, registered partnership deed, MOA & AOA, registered trust deed, LLP agreement etc.)
- Udyam registration certificate
- Contractor license from regulatory authority
As easy as 1,2,3...
Apply for a Overdraft Security Deposit 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.
Yes, you need to be an existing Karnataka Bank client with a working capital overdraft limit and a history of satisfactory dealings to avail of this facility.
No, stock statements are not required for the Overdraft Security Deposit scheme, simplifying the application process for you.
The Fixed Deposit Receipt will be issued in the name of the beneficiary on your account. This ensures that the financial security is directly linked to the specific project or contract you are undertaking.
The interest rate will be as applicable to the KBL MSME Scheme or the rate charged to your regular working capital overdraft account, ensuring competitive and fair pricing.
The tenure of the Overdraft Security Deposit scheme aligns with your existing working capital account. This is to match your ongoing project timelines and issuance of funds as per your needs.
The bank charges a processing fee or upfront fee.
Fixed Deposit Receipts (FDRs) are documents issued by banks when you make a fixed deposit, a type of investment where money is deposited for a set period at a fixed interest rate. In the context of the Overdraft Security Deposit - FD Scheme, these FDRs are used instead of traditional Bank Guarantees. Essentially, FDRs serve as a security or collateral for the loan. They assure the bank that funds are available and can be claimed in case of default.
You can conveniently apply for the loan online, or if you prefer a personal touch, you're welcome to visit your nearest KBL branch. We're here to make the application process easy for you.
If you miss an EMI, it's important to contact the bank as soon as possible. While there may be some flexibility, consistently missing payments can affect your credit score and eligibility for future loans.
Civil contractors engaged in execution of infrastructure projects. Applicants should be our existing client having working capital OD limit with us with satisfactory transactions.
Yes, the applicant should be our existing client having working capital OD limit with satisfactory dealing with us.
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.
Secure your business's financial obligations with an Overdraft Security Deposit. This facility allows you to obtain an overdraft against FD, giving you the flexibility to meet unexpected business expenses without breaking your fixed deposit. It's a smart way to manage cash flow without compromising your savings.
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.
