Karur Vysya Bank Business Loan

The interest rate for the Karur Vysya Bank Business Loan for its Swarnamitra scheme is 11.55% p.a. However, the bank has not disclosed the interest rates for its other business loan schemes. The KVB Business Loan interest rates for its multiple schemes depend on several factors including the credit scores, coverage ratio, internal risk rating (IRR), priority/non-priority sector, etc. of the MSME business entity availing the loan.

KVB MSME Easy Loan

Purpose: This business loan product is designed for existing Micro and Small Manufacturing units (other than traders) with minimum existence of 1 year and turnover lower than Rs 1 Crore in the previous financial year. The facilities offered for Manufacturing units include Open Cash Credit (OCC), Letter of Credit (LC), Bank Guarantee (BG), etc. while the facilities for service sector units include SOD-RE and HPL(M).

Interest Rate: The interest rates for KVB MSME Easy Loan is based on factors like the credit score, IRR, coverage ratio, priority/non-priority sector, etc. of the business entity availing the loan.

Loan Amount: The total loan amount for KVB MSME Easy Loan can go up to Rs 50 lakh. The limit for individual facilities under this product are as follows:

Loan tenure: The loan tenure for different facilities offered under the KVB MSME Easy Loan are as follows:

Margin: The Margin for different facilities under KVB MSME Easy Loan are as follows:

Primary security: The primary security for KVB MSME Easy Loans are as follows:

Collateral Security:

Guarantors : Partners, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor or lady proprietor as per the bank’s credit policy provisions.

KVB MSME Term Loan

Purpose: KVB MSME Term Loan offers both short and medium term loans for MSME sector units for acquiring fixed assets related to business, raising long-term funds, improving current ratio, etc. The bank will not consider financing only the factory land for this loan.

Interest Rate: The interest rate is finalised on the basis of the business entity’s credit score/rating.

Loan tenure: 3 to 7 years (depending on the cash flows of the business)

Margin: 40% for building and 20% for machinery.

Primary security: Exclusive charge on all fixed assets and second charge on all current assets of the business unit.

Collateral Security: Equitable Mortgage (EM) charge on immovable assets with a minimum 75% of aggregate exposure. Alternatively, other tangible assets equivalent to a minimum 75% of aggregate exposure.

Guarantors : Partners, proprietors, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor or lady proprietor.

KVB MSME Cash

Purpose: This business loan product from KVB offers working capital (W/C) solutions for MSME businesses in the form of OCC, Secured Overdraft (SOD) or short term loans (W/C) . Businesses can use the STL to procure raw materials, finance expenses related to research and development, obtaining ISO certification, etc.

Interest Rate: KVB decides the interest rates for this business loan product based on the credit score or rating of the business entity applying for the loan.

Loan tenure: The loan tenure for different facilities offered under KVB MSME Cash are as follows:

Margin: The Margin for different facilities under KVB MSME Cash are mentioned below:

Primary security: The primary security for KVB MSME Easy Loans are as follows:

Collateral Security:

Guarantors : Partners, proprietors, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor or lady proprietor.

KVB Easy Trade Fin

Purpose: This KVB Business Loan scheme offers working capital solutions through the secured overdraft route for individuals, sole proprietors and partnership firms engaged in trading with minimum turnover of Rs 1 crore

Interest Rate: KVB decides the interest rates for this business loan product based on the loan applicant’s credit score/rating.

Loan Amount: Up to Rs 20 lakh

Margin: Rs 1 crore (maximum turnover)

Primary security: The primary security for KVB Easy Trade Fin are as follows:

Collateral Security: Hypothecation of stock-in-trade

Guarantors: Partners & title holders of the property.

Repayment: The secured overdraft shall be for a period of one year, which shall be reassessed and renewed before the expiry of the due date based on the financial or operational performance.

Swarnamitra

Purpose: Swarnamitra business loan is an overdraft/short term loan facility provided to individuals by the bank against their jewellery for business purposes.

Interest Rate: 11.55% p.a.

Loan Amount: Minimum Rs 1 lakh

Loan Tenure: 1 year. The bank can renew the limit for another year subject to their discretion

Primary security: The borrower should pledge gold jewellery with minimum purity of 22 Carats and gold ingots sold by banks.

Collateral Security: Nil

Guarantors : Nil

Other terms and conditions: The other terms and conditions for KVB Swarnamitra Business Loan are as follows:

Varthaga Mitra

Purpose: Varthaga Mitra is a secured overdraft loan, short term loan or a combination of both to help traders finance their working capital requirements. This business loan facility is available for individuals, proprietary concerns, partnership firms, hindu undivided family (HUFs), companies, limited liability partnerships (LLP), etc. with business operations of 1 year and above.

Interest Rate: The interest rate for the Varthaga Mitra scheme is decided on the basis of the credit score / rating of the business entity.

Loan Amount: Up to Rs 5 crore

Margin: Security coverage of 167%

Loan Tenure: 1 year. The bank can renew the limit for a further period of 12 months subject to their discretion

Primary security: Residential or commercial land and building property with 50% margin / term deposits / National Savings Certificates / Life Insurance Policies (all or any of them) may also be accepted to cover the difference amount in full provided the following conditions are fulfilled:

Collateral Security: Hypothecation of book debts and stock in trade

Repayment : The conditions for repayment in case of Varthaga Mitra business loan are as follows:

KVB Transport Plus

Purpose: This business loan facility enables transport operators to avail term loans for purchasing old/new vehicles (the age of old vehicle must not be more than 5 years) and secured overdraft/working capital demand loan (WCDL) for working capital finance. Individuals, proprietary concerns, partnership firm, limited company, trust, association, etc. including those coming under Priority/Non-Priority sector are eligible for this loan.

Interest Rate: The interest rate is determined based on the credit score/rating of the business loan applicant

Loan Amount: Up to Rs 5 crore

Margin: The Margin for KVB Transport Plus are as follows:

Loan Tenure: 1 year. The bank can renew the limit for a further period of 12 months subject to their discretion. However, in case of working capital finance for old/new vehicles, the tenure is 1 year for SOD and 3 years for STL.

Primary security: Hypothecation of the proposed vehicle with body built. For working capital finance, the bank requires the existing vehicle, that is in the borrower’s name and that is free of any debt or other financial liability, as collateral

Collateral Security: The collateral security required for this KVB Business Loan scheme is mentioned below:

Collateral Security is optional for borrowers seeking working capital finance against their old/new vehicles

Guarantors: Personal or third party guarantee / family members / partners, directors, trustees, members of association in their individual capacity.

KVB Pharma Plus

Purpose: The KVB Pharma Business Loan scheme is specifically designed for the members of the Chemists and Druggists Association. It provided working capital to chemists and druggists in the form of secured overdraft (against property) or open cash credit facility. Individuals who are members of Chemists and Druggists Association or partnership firms/private limited companies who can submit an introductory letter from the concerned district association are eligible to avail the KVB Pharma Plus Loan

Interest Rate: The interest rate offered for KVB Pharma Loan is on the basis of the credit score/rating of the business entity availing the loan.

Loan Amount: Up to Rs 5 crore

Margin:

Primary security: Mortgage of Non-agricultural property (for SOD) and stock & book debts not older than 60 days (for OCC)

Collateral Security: Hypothecation of stock & book debts not older than 60 days (for SOD) and collateral security with minimum coverage of 75% (for OCC)

Guarantors: The guarantors for KVB Pharma Plus are mentioned below:

KVB Steel Plus

Purpose: KVB Steel Plus helps businesses that trade in iron and steel as well as other non ferrous metals, with minimum 2 years of profitable operations, meet their working capital requirements. The bank provides working capital limits in the form of SOD/OCC and non-fund based limits like bank guarantee (BG), inland letter of credit (ILC) or foreign letter of credit (FLC)

Interest Rate: The interest rate provided for KVB Steel Plus loan is set by the bank based on the credit score/rating of the business loan applicant.

Loan Tenure:

Margin: The Margin for KVB Steel Plus Business Loans are as follows:

Primary security:

Collateral Security:

Guarantors: Partners (in a partnership firm), directors (of a company) or title holders (of the immovable property offered as security) and husband of lady guarantors, lady proprietor or lady partners.

KVB Textile Plus

Purpose: KVB Textile Plus fulfils the working capital requirements (open cash credit or secured overdraft) of businesses dealing in textile and handloom products, yarn traders, cotton traders and deemed manufacturers (those who purchase cloth and add value in terms of embroidery or printing artwork images) with at least 2 years of profitable operations.

Interest Rate: The interest rate offered for KVB Textile Plus is determined on the basis of the credit score/rating of the loan applicant availing the business loan scheme.

Loan Amount: Rs 15 lakh to Rs 5 crore

Loan Tenure: Karur Vysya Bank provides a running account for this business loan that is renewable every year

Margin: The margin for Karur Vysya Bank Textile Plus business loans are as follows:

Primary security:

Collateral Security:

Guarantors: Partners (in a partnership firm), directors (of a company) or title holders (of the immovable property offered as security) and husband of lady guarantors, lady proprietor or lady partners.

KVB Timber Plus

Purpose: KVB Timber Plus loan is a business loan product that aids the working capital requirements (secured overdraft/open cash credit) of the timber industry.

Interest Rate: KVB sets the interest rate for this business loan scheme based on the credit score/rating of the business entity.

Loan Tenure:

Margin: The Margin for Karur Vysya Bank Timber Plus business loans are as follows:

Primary security:

Collateral Security:

Guarantors: Partners, proprietors, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor or lady proprietor.

KVB Construction Plus

Purpose: KVB Construction Plus loan is designed to meet working capital needs of construction and internal material traders with at least 2 years of profitable operations. KVB Construction Plus include both fund based (open cash credit or secured overdraft) and non-fund based limits (bank guarantee, inland letter of credit or foreign letter of credit). The businesses who wish to avail this loan should have a minimum KVB (BB) score of 51.

Interest Rate: The interest rate provided for the KVB Construction Plus scheme is determined based on the business loan applicant’s credit score/rating

Loan Amount: The loan amount for Karur Vysya Bank Construction Plus Business Loan is mentioned below:

The total loan amount of businesses availing both fund based and non-fund based facilities should not exceed Rs 15 crore.

Loan Tenure: The loan tenure for KVB Construction Plus is as follows:

Margin: The Margin for this business loan scheme is as follows:

Primary security:

Collateral Security:

Guarantors: Partners, directors or title holders of the immovable property pledged as security for the loan and husband of the lady guarantors, lady proprietor or lady partners as per the bank’s credit policy provisions.

Eligibility (for contractors):

Nature of the facility:

Interest Rate: The interest rate is set by the bank based on the credit score/rating of the business loan applicant

Loan Amount: The loan amount for Karur Vysya Bank Construction Plus business loan is mentioned below:

Loan Tenure: The loan tenure for KVB Construction Plus (for contractors) is as follows:

Margin: The Margin for this business loan scheme is as follows:

Primary security:

Collateral Security:

Guarantors: Partners, directors or title holders of the immovable property pledged as security for the loan and husband of the lady guarantors, lady proprietor or lady partners as per the bank’s credit policy provisions.

KVB Rice Plus

Purpose: KVB Rice Plus helps to meet the working capital requirements of rice mills (with more than 3 years of profitable operations) through instruments like working capital demand loan, short term loan, open cash credit or secured overdraft. The bank can provide CC/SOD up to 6 months stock holding level and WCDL/STL up to 2 months stock holding level. The KVB Rice Plus business loan also provides Term Loan (TL) for factory building/plant and machinery for setting up new units, expansion of existing units and investment in plant, machinery or new factory building

Eligibility: All rice millers with greater than 3 years of profitable operations are eligible for  KVB Rice Plus business loans. The bank will consider relaxations for new rice mill units established by promoters of existing profitable units.

Nature of the facility:

Interest Rate: The interest rates for KVB Rice Plus Business Loan is affixed based on credit score or credit rating of its loan applicant.

Loan Amount: The loan amount for Karur Vysya Bank Construction Plus business loan is mentioned below:

Loan Tenure: The loan tenure for KVB Construction Plus (for contractors) is as follows:

Margin: The Margin for this business loan scheme is as follows:

Primary security:

Collateral Security:

Guarantors: Partners/proprietors of the firm and title holders of the immovable property given as security.

KVB Commodity Plus

Purpose: KVB Commodity Plus helps to meet the working capital requirements of commodity traders, with at least 2 years of profitable operations and KVB (BB) score of 51 and above, through instruments like secured overdraft, open cash credit, packing credit limit (PCL) or foreign bill purchase (FBP) for working capital requirements and inland or foreign letter of credit for the purchasing raw materials. Individuals, sole proprietorship concerns, partnership firms, LLPs, HUFs and companies are eligible to avail this loan.

Nature of the facility:

Interest Rate: The interest rate is based on the prospective business loan applicant’s credit rating or score

Loan Amount: Rs 15 lakh to Rs 10 crore for working capital requirements (both fund based and non-fund based limits put together).

Loan Tenure:

Margin: The Margin for this business loan scheme is as follows:

Primary security:

Collateral Security:

Guarantors : Partners, proprietors, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor, lady partner or lady proprietor as per the bank’s credit provisions.

KVB Food and Agro Process Plus

Purpose: KVB Food and Agro Process Plus is a business loan scheme for agro and food processing companies with at least 2 years of profitable operations and KVB (BB) score of 51 and above, both through fund based instruments like secured overdraft, open cash credit, foreign bill purchase and non-fund based instruments like inland/foreign letter or credit for import/purchase of raw materials or machinery and sanction of buyers credit.

Nature of the facility:

Interest Rate: The interest rate is set by the bank based on the credit score/rating of the business loan applicant.

Loan Amount:

Loan Tenure:

Margin: The Margin for this business loan scheme is as follows:

Primary security:

Collateral Security:

Guarantors : Partners, proprietors, directors or title holders of the property pledged as security for the loan and husband of the lady guarantor, lady partner or lady proprietor as per the bank’s credit provisions.

KVB POS Plus

Purpose: The KVB POS Plus product is a business loan scheme offering loan against card swipes for merchants using the POS (point of sale) facility depending on the total amount credited to their bank account via POS swipes. Individuals, HUF, Proprietors, Firms, LLP, companies, trusts or societies who are using the POS facility through KVB for minimum 6 months (at least 3 months for new merchants) for business use are eligible to avail this loan. This facility allows individuals to switch between working capital and term loan facility.

Interest Rate: The interest rate is determined based on the business loan applicant’s credit score/rating.

Loan Amount: Rs 5 lakh to Rs 1 crore

Loan Tenure:

The business loan eligibility criteria set for availing different Karur Vysya Bank Business Loans are as follows:

Although the bank has not provided the eligibility criteria for some of its business loan variants, any MSME business unit planning to avail that particular business loan scheme can get in touch with any nearby KVB branch to know the eligibility criteria for that product.

Karur Vysya Bank has not specified the documents required for its business loan schemes. Apart from the documents required for KYC verification, income proof, proof of residence/business address and proof of business continuity of the MSME business unit, the bank may ask for additional documents from the loan applicants based on the features of the loan scheme.