Term Loan
A programme by Karnataka State Financial Corporation (Karnataka State Financial Corporation)
KSFC's core term loan for new tiny, small-scale, medium-scale and service units, and for expansion, modernisation or diversification of existing units.
At a glance
| Best for | New micro, small and medium units in Karnataka, and existing units that are expanding, modernising or diversifying. |
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About Term Loan
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.
Where to apply
Other KSFC programmes
- Corporate Loan SchemeShort-term working-capital loans for existing successful units, and construction finance for developers and contractors.
- Privileged Entrepreneurs SchemeShort-term funds for existing KSFC borrowers in the standard category, repayable within 24 months including a six-month moratorium.
- Women Entrepreneurs Scheme (4% Interest Subvention Loan)An interest subvention that brings a KSFC term loan for women-promoted enterprises to an effective 4% a year for five years.
- Interest Subsidy Scheme for SC/ST Entrepreneurs (4%)An interest subsidy that brings KSFC loans to SC- and ST-owned enterprises to an effective 4% a year.
- Modified Interest Subvention Scheme (5.5%) for Micro and Small Manufacturing EnterprisesGovernment of Karnataka interest subvention for micro and small manufacturing enterprises: an effective 5.5% a year for five years if instalments are paid by the 10th of the month.