Karnataka State Financial Corporation

KSFC's term loan is its main product. It funds the setup of new units as well as the expansion, modernisation or diversification of existing ones, across a long list of eligible activities. Two named activities sit under the same route: the Single Window Scheme, which gives one loan for both fixed assets and working capital to tiny and small-scale units with small project costs, and A.M.A.R.A, which supports existing small and medium units with a good track record in raising sales and building marketing infrastructure.

What you get

• A term loan for setting up, expanding, modernising or diversifying a unit
• Single Window Scheme: fixed-asset and working-capital finance in one loan, for tiny and small-scale units with small project costs
• A.M.A.R.A: support for marketing activities, for existing small and medium units with a good track record

Who can apply

• New tiny, small-scale, medium-scale and service units in Karnataka
• Existing units that are expanding, modernising or diversifying
• The maximum loan depends on whether you are a proprietorship or partnership, or a company or co-operative society
• Debt-equity ratio of 3:1 for smaller loans and 2:1 for larger ones, and 2:1 for the modernisation scheme

How to apply: Apply through a KSFC branch or the loan link on KSFC's website. The Term Loan Application Form is on KSFC's documents page. Aadhaar is not accepted as proof of identity. KSFC's published sheets give different maximum loan sizes, so confirm the limit with a branch.

The Corporate Loan Scheme lets existing successful units borrow short-term working capital when they need funds urgently. Those needs include a gap in working capital, a rush of orders, entering new markets, paying statutory dues such as income tax, sales tax and excise duty, and opening a letter of credit for new equipment until a term loan is sanctioned and released. The scheme also finances developers, civil contractors and construction companies building group housing, commercial complexes, software parks and infrastructure projects such as roads, flyovers and bridges.

Who can apply

• Existing successful units that need urgent working capital
• Developers, civil contractors and construction companies building the projects the scheme covers

How to apply: The scheme sheet does not set a separate route, so contact KSFC's nearest branch.

The Privileged Entrepreneurs Scheme gives short-term funds to units that have already borrowed from KSFC and are in its standard category, to meet short-term funding needs. Repayment must fall within 24 months, including a six-month moratorium. The scheme also sets a minimum past-borrowing level and a loan-size range, which KSFC states in its scheme sheet.

Who can apply

• Units that have borrowed from KSFC in the past at or above the scheme's stated level
• Units in KSFC's standard category with a good track record for at least three years

How to apply: Existing KSFC borrowers only. The scheme sheet does not give a route, so contact your KSFC branch.

The Women Entrepreneurs Scheme lowers the rate on a KSFC term loan for women-promoted enterprises to an effective 4% a year. The subvention runs for five years from the first disbursement of the loan. The scheme covers proprietorships, partnerships and private companies.

What you get

• An effective interest rate of 4% a year on a KSFC term loan
• The subvention runs for five years from the first disbursement

Who can apply

• Proprietorships, partnerships and private companies in which the main woman promoter, or women promoters, hold more than 51%
• Not for infrastructure, Kalyana Mantapas, housing or commercial buildings, real estate, malls, cinema houses, business or trading activities, purchase of construction equipment, or transport vehicles

How to apply: Apply for a KSFC term loan at a branch. The subvention attaches to that loan.

The Interest Subsidy Scheme for SC and ST entrepreneurs brings KSFC loans to an effective 4% a year for units owned by SC or ST promoters. The subsidy is capped at a set size of loan, and the working-capital term loan under the scheme has its own cap. Repayment runs over 8 years for smaller loans and 10 years for larger ones, including the moratorium.

Who can apply

• Units fully owned by SC or ST promoters: every promoter in a proprietorship, partnership or company must belong to the SC or ST community
• Promoters may be SC, ST or both

How to apply: Call KSFC on 080-22263322 or contact the nearest branch.

The Government of Karnataka introduced this interest subvention for micro and small manufacturing enterprises, and KSFC implements it. The borrower pays an effective 5.5% a year when each instalment is paid by the 10th of the month, and 6% otherwise. The subvention runs for five years from the first disbursement of the loan.

What you get

• An effective interest rate of 5.5% a year on a KSFC loan when instalments are paid on time
• Five years of subvention from the first disbursement

Who can apply

• Micro and small manufacturing enterprises
• Enterprises promoted by entrepreneurs of any category, men and women

How to apply: The scheme is implemented through KSFC and the scheme sheet gives no separate route, so contact a KSFC branch.