Karnataka
Direct Loans For Business Enterprise
Main benefit
Under this scheme, loans will be provided to eligible entrepreneurs to start or expand their businesses by mortgaging property (building or land).
Can you get this scheme?
Conditions at a glance
- Age 18 or above
- Age up to 55
- Work: Business / self-employed
- From a minority community
About
The main objective of this scheme is to provide financial assistance in the form of loans to persons belonging to the State's Religious Minority Communities so as to help them to start their businesses or expand their existing ones.
Under this scheme, loans will be provided to eligible entrepreneurs to start or expand their businesses by mortgaging property (building or land).
Loans will be provided only on a mortgage of property (building/land) to the corporation. The value of the property should not be less than the loan amount.
Business/Enterprise Loan will be given to only one member of a family.
If the applicant's family income is below Rs 8.00 lakhs, then the loan will be provided up to Rs 20 lakhs at a 4% interest rate.
If the applicant's family income is Rs 8.00 lakhs to 15 lakhs, then the loan will be provided up to Rs 20 lakhs at a 6% interest rate.
People belonging to State Religious Minority Communities are covered under this scheme. (State Religious Minority Communities consist of People belonging to Muslim, Christian, Sikh, Buddhist, and Jain Communities).
The following are the eligibility criteria for this scheme Applicant should be a resident of Karnataka state
Applicant should belong to the minority community
Applicant should belong to a minority community
Applicant Age should be between 18 to 55 years
Business/Enterprise loan will be given to only one member of a family
Specific documents regarding the viability of the business are required while applying for this scheme, and some other Documents are Required After Selection as well.
Documents Required While Applying
Copy of Aadhaar as residential proof
Caste Certificate Issued by the competent authority
Income Certificate Issued by the competent authority
Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed of the property
Project report/Profile of activities from CA(Chartered Accountant)Quotations related to the project
License from respective authorities with respect to property proposed to be mortgaged
Building's Khata extract and Khata certificate or land's Mutation copy.
Phodi/Partition deed with respect to revenue lands and phani-RTCEncumbrance Certificate- (EC)/Form No.15Up-to-date tax-paid receipts from the local bodies
Guidance value of the land from the competent authority
No objection from the family members to pledge the title deed, with the family treeIn the case of a building, a Valuation report by a registered valuer- Valuation Certificate
Self-Declaration Form
Documents Required After Selection
Committee Approval Order
Affidavit from Applicant
Joint Affidavit from the Beneficiary & the Guarantor
Demand Promissory Note (DPN)Hypothecation & Mortgage Deed
Letter of Repayment
Letter of Guarantee
Loan Agreement
Consideration of Receipt
Acknowledgment of debt from the Borrower
Benefits
- Under this scheme, loans will be provided to eligible entrepreneurs to start or expand their businesses by mortgaging property (building or land).
- If the applicant's family income is below Rs 8.00 lakhs, then the loan will be provided up to Rs 20 lakhs at a 4% interest rate.
- If the applicant's family income is Rs 8.00 lakhs to 15 lakhs, then the loan will be provided up to Rs 20 lakhs at a 6% interest rate.
Who can apply
- Applicant should be a resident of Karnataka state
- Applicant should belong to the minority community
- Applicant should belong to a minority community
- Applicant Age should be between 18 to 55 years
- Business/Enterprise loan will be given to only one member of a family
Who cannot apply
- Applicant should not be a loan defaulter of K.
- M.
- D.
- C.
Documents needed
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How to apply
Online
OfflineThe application is to be completed in two parts, first online and then offline.
- 1
First go to the official website, and fill out the application form.
- 2
Print the application form.
- 3
Submit this application form along with other relevant documents to the Selection Panel of your concerned district.
- 4
After the approval of the Selection Panel, the loan amount will be transferred to your bank account.
Common questions
Who will get the benefits under this scheme?
People belonging to State Religious Minority Community will receive the Benefits under this scheme.
What are the benefits?
Under this scheme, a loan of Rs.20 Lakhs will be given At Low Interest Rates to persons belonging to minority communities for setting up their Businesses.
What is the rate of interest on the loan?
If The Applicant's Family Income Is Below Rs 8.00 Lakhs, It will be 4%. if the applicant's family income is between Rs 8.00 lakhs-15 lakhs, It will be 6%.
Is there a guarantee needed for getting loan under this scheme?
Loans will be provided only on a mortgage of property (building/land) to the corporation. The value of the property should not be less than the loan amount.
What is the application procedure for this scheme?
The person can request loans by applying online through link https://kmdconline.karnataka.gov.in/Portal/home and then submitting the filled applications along with documents, or they can directly walk-in to the banks to provide them assistance for getting the loans under this scheme.
What are the required documents?
Copy of Aadhaar as residential proof, Caste Certificate Issued by the competent authority, Income Certificate Issued by the competent authority, Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed of the property, Project report/Profile of activities from CA(Chartered Accountant), Quotations related to the project, License from respective authorities with respect to property proposed to be mortgaged, Building's Khata extract and Khata certificate or land's Mutation copy, Phodi/Partition deed with respect to revenue lands and phani-RTC, Encumbrance Certificate-(EC)/Form No.15, Up-to-date tax-paid receipts from the local bodies, Guidance value of the land from the competent authority, No objection from the family members to pledge the title deed with the family tree,
In the case of a building, Valuation report by a registered valuer and Valuation Certificate, Self-Declaration Form How to obtain Self- declaration form, caste certificate, and RTC?
All these documents can be obtained online. The links are as under: The link for Self- Declaration Form – https://kmdconline.karnataka.gov.in/API/Project Files/Document Types/Self-Declaration-Applicant1.pdf The link to get a Caste Certificate is – https://sevasindhu.karnataka.gov.in/Category/Caste%20Certificate.html The link to get RTC is – https://landrecords.karnataka.gov.in/Service2/