Karnataka Bank Ltd.

Choosing this route

• Use it for a business loan, not for a startup grant. Money from this loan must be repaid.
• The bank lends on its own credit standards, so check eligibility against your turnover and investment before applying.

How to apply

• Keep your documents ready before you start the online application.
• Ask about collateral-free options if your business is eligible under the CGTMSE guarantee.

Karnataka Bank Limited is a scheduled commercial bank incorporated in 1924 at Mangaluru, in the coastal Dakshina Kannada district of Karnataka. It is a bank, not an incubator or accelerator, so its relevance to startups is as a lender.

How its business loans work

The bank's MSME business loan is open to traders, operators and service providers who meet its MSME investment and turnover limits. Interest is linked to EBLR, and tenure can run up to 35 months. Loans that qualify under the Credit Guarantee Fund Trust for Micro and Small Enterprises can be taken without collateral up to a stated limit.

Who can apply

Applicants must be at least 18 years old, with a maximum age limit of 70 years, and be Indian residents.

Where to apply

The bank describes applying for this loan online in three steps.

Who runs it

Karnataka Bank Limited, Post Box No. 599, Mahaveera Circle, Kankanady, Mangaluru.