KBL Equipment Loan
The KBL Equipment Loan is designed to empower your business by financing new and old equipment across various sectors, including medical, construction, and manufacturing. Whether you're upgrading your machinery or investing in new tools, our scheme offers attractive interest rates, flexible repayment options, and a straightforward application process. Tailored for businesses of all sizes, from sole proprietorships to large corporations, our goal is to make your growth journey smoother and more affordable. Read more
Why this loan is for you
Designed to give you just what you need
We finance a broad range of new and second-hand equipment, from medical devices to heavy machinery
Enjoy a 6 month moratorium with T-bill linked interest rates
Enjoy interest concessions of 0.25% with special offers
ಅರ್ಹತೆ
- Minimum 21 years of age with the total of age and loan period within 70 years
- 2 years of business experience with profit-earning
- Must be income tax compliant
- Used equipment must not be more than 3 years
- Open to LLPs, trusts, societies, and more
- UDYAM registration required for MSMEs
- At least 2 years of business operations with profit-earning
- Must be tax compliant
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Got questions? We’ve got answers.
The scheme covers a wide range of equipment including medical equipment, construction machinery (backhoe loaders, compactors, etc.), industrial machinery (RMC plants, forklifts, etc.) and more.
Eligibility extends to individuals, sole proprietors, partnerships, private/public companies, LLPs, Trusts, HUFs, and Societies with a profit-earning business and at least 2 years of business experience.
Individuals must be at least 21 years old at the time of loan application, with the sum of their age and the loan period not exceeding 70 years.
For new equipment, you can receive up to 90% financing based on the cost as per the Proforma Invoice.
Up to 84 months for new equipment, with a moratorium period of up to 6 months. For old equipment, the maximum tenure is 60 months.
Yes, the used equipment to be financed should not be older than 3 years.
Yes, the maximum exposure per borrower under the scheme is ₹2.5 crore.
The loan requires hypothecation of the equipment proposed to be purchased.
Interest rates are competitive and linked to the 6 Months T-Bill, with attractive rates for new equipment and competitive rates for old equipment.
Yes, there's a 0.25% interest concession for Women Entrepreneurs and a 0.10% concession for MSMEs with Zero Defect Zero Effect (ZED) Certification from QCI. No collateral securities are required, and processing charges are set at 0.25% of the loan amount.
The Karnataka Bank Equipment Loan scheme is tailored to empower businesses across various sectors by providing them with the financial support needed to acquire new or used equipment. This scheme stands out for its wide coverage, including medical equipment, construction machinery, and industrial tools, ensuring businesses have the right tools to thrive. With up to 90% financing for new equipment and 80% for used, along with flexible repayment terms up to 84 months, it caters to the diverse needs of businesses, from startups to established corporations. The inclusivity of the scheme extends to a broad spectrum of applicants, including individuals, partnerships, and various organizational forms, making it a versatile and accessible financial solution for upgrading or expanding business operations.
Interest rates for the Karnataka Bank Equipment Loan scheme are designed with the borrower's financial health in mind. For new equipment, the scheme offers attractive interest rates linked to the 6 Months T-Bill, ensuring affordability and encouraging investment in state-of-the-art machinery. Similarly, for used equipment, competitive rates are applied, also linked to the T-Bill, providing a cost-effective solution for businesses looking to purchase pre-owned machinery. These rates are structured to support the financial growth of businesses by making loans more accessible and manageable. Additional concessions for women entrepreneurs and MSMEs with ZED Certification from QCI further underline the bank's commitment to fostering an inclusive and supportive financial ecosystem.
When considering the Karnataka Bank Equipment Loan, it's crucial to keep in mind some key do's and don'ts to ensure a smooth financing experience. Do ensure your business meets the eligibility criteria, including the minimum business operation period and profitability. Do prepare all necessary documents in advance, including proof of business experience and tax compliance. Do carefully assess the amount of financing you need, considering the bank offers up to 90% financing for new equipment and 80% for used. Don't overlook the requirement for the equipment age, especially for used equipment, which should not be older than 3 years. Lastly, don't hesitate to reach out to Karnataka Bank for any queries or clarification on the loan scheme, as understanding the fine details can significantly impact your financing decision and the success of your investment.
