Karnataka Direct Loan For Business Enterprises Scheme

Scheme Introduction: A Brief Overview

• The Karnataka government launched a loan scheme for the state entrepreneurs looking to expand or start their enterprises or businesses.
• The initiative started by the state government with an aim to provide financial assistance to eligible entrepreneurs is known as "Direct Loan For Business Enterprises Scheme".
• Under this scheme, the entrepreneurs can avail loans of up to Rs 20 Lakh at a prescribed interest rate.
• State government started this initiative with the help of Karnataka Minorities Development Corporation Limited, which serves as the nodal authority of the scheme.
• The primary objective of the scheme is to provide necessary financial support to these entrepreneurs during the nascent stage of their business.
• As in many cases we have seen that many entrepreneur shut their enterprises due to poor financial conditions.
• To address the issue, the state government started the Direct Loan For Business Enterprises Scheme.
• This scheme ensures, each entrepreneur secure a loan despite their financial situations.
• To ensure the scheme reached maximum entrepreneurs, the government restricted its benefit to one member per household.
• However, the loan provided under the scheme is not collateral free and applicants need to mortgage their property as security.
• The value of the mortgage property mortgage should not be less than the loan amount.
• The Karnataka Direct Loan for Business Enterprises scheme is specifically for the applicants belonging to the state minority communities; such as
  • Muslims.
  • Christians.
  • Sikhs.
  • Buddhists, and
  • Jains.
• Applicants must repay the loan with the requisite interest rate, which is determined based on their family annual income.
  • If the applicant's annual family income is less than Rs 8 lakh, the loan will be provided to them at 4% interest rate.
  • Whereas, for applicants with annual family income between 8 lakh to 15 lakh, the interest rate for them is 6%.
• Entrepreneurs satisfying all the conditions specified in the scheme guidelines can submit the Direct Loans for Business Enterprise application online.
• Its application form are exclusively available at Karnataka Minorities Development Corporation Website.

Scheme Benefits

• Under the Direct Loan for Business Enterprises the Karnataka government is providing following benefits to its beneficiaries : -
  • Entrepreneurs can avail loans up to Rs 20 Lakh.
  • Loan will be provided at an interest rate of 6% and 4% with the below mentioned conditions : -

    Interest rate	Loan Amount	Annual Family Income
    4%	20 Lakh	below 8 lakh
    6%	20 Lakh	8 to 15 lakh

Eligibility Requirements

• Applicants must meet the following eligibility conditions to receive Direct Loan for Business Enterprises : -
  • Must be a domiciled resident of Karnataka.
  • Should belong to state minority community (Muslims, Christians, Sikhs, Buddhists, and Jains)
    
  • Must be between 18 to 55 years of age.
  • The value of the property mortgage should not be less than the loan amount.
  • Loan will be provided to one member per family.

Ineligibility Criteria of Scheme

• Applicants with the following eligibility conditions will not be considered eligible for the scheme : -
  • Applicants other than of minority community.
  • Applicants is defaulter of K.M.D.C.

Required Documents

• Applicants need to provide certain documents when submitting applications for the scheme and some when they selected for the Direct Loan for Business Enterprise scheme. The list of such documents can be checked in the table given below : -

  While Applying

  After Selection

  Aadhaar Card. Caste Certificate. Income Proof. Lease/Partition/Release/Gift/Sale Deed/Rental Agreement of Property. Project Report issued from Chartered Accountant. Project Quotations. License from competent authorities w.r.t land/building to be mortgaged. Phodi/partition Deed with respect to revenue lands and phani RTC. Land Mutation/Building Khata extract. Form number 15/ Encumbrance Certificate (EC) Tax receipt issued from local bodies. Property Guidance value from competent authority (Valuation report of registered valuer in case of building) NOC from family members to pledge the title deed. Self Declaration.

  Approval order from the committee. Affidavit from Applicant. Beneficiary and the guarantor joint affidavit. Demand Promissory Note (DPN) Mortgage and Hypothecation Deed. Repayment Letter. Guarantee letter. Loan Agreement. Consideration Receipt. Acknowledgement debt from borrower and guarantor. Memorandum of deposit of title deeds/equitable mortgage deed. Blood relation of power of attorney (if applicant is not the owner of property).

Steps to Apply

• Interested applicants can apply for the Karnataka Direct Loan For Business Enterprises Scheme.
• The application form for the Direct Loan for business enterprises scheme can be submitted online.
• Its application forms are exclusively available at Karnataka Minorities Development Corporation Limited (KMDC)
• Visit the KMDC official website to submit the Direct Loan for Business Enterprises Scheme applications.
• On the home page, select the 'Direct Loan for Business Scheme' under the scheme list.
• Tap on the 'Apply Online' tab and submit your ten digit Mobile Number.
• Applicants need to verify the submitted mobile number by submitting the 6 digit OTP number received via SMS.
• Upon verifying successfully, applicants need to provide : -
  • Personal Details, Contact Details and Project Details.
• Upload the required documents as shared in the documents checklist section.
• Preview the application form to ensure the details submitted are correct.
• Once the application form is submitted, print the copy of the application form for future reference.
• Applicants can also check the status of their submitted applications online.
• Upon loan approval, applicants must submit the other documents requested in the guidelines.
  

Relevant Links

• Karnataka Direct Loan For Business Enterprises Application Form.
• Direct Loan for Business Enterprises Application Status.
• Karnataka Direct Loan For Business Enterprises Scheme Guidelines.

Contact Information

• Karnataka Minorities Development Corporation Limited Helpline Number : - 080-22860999.
• Karnataka Minorities Development Corporation Limited WhatsApp Helpline : - 08277799990.
• Karnataka Minorities Development Corporation Limited Helpdesk Email :-
  • info.kmdc@karnataka.gov.in.
  • kmdc.ho.info@karnataka.gov.in.
• Karnataka Minorities Department Corporation Limited,
  No. 39-821, Subedhar Chatra Road,
  Sheshadripuram, Bengaluru,
  Karnataka - 5660001.