Kvb Msme Easy Loan

Karur Vysya Bank MSME Easy Loan is aimed at providing a complete solution for the

Micro and Small Manufacturing units whose turnover is less than Rs. 100 Lakhs in the previous year. The bank offers working capital and term loan for Small and Medium Enterprises engaged in the manufacturing and service sectors. In this article, we look at the Kvb Msme Easy Loan in detail.

Eligibility Criteria

The below requirements are needed to apply for the MSME Easy Loan:

All existing Micro & Small manufacturing and service units (other than traders) whose turnover is less than Rs. 100 Lakhs in the previous financial year (with a minimum one year of existence).
The Manufacturing enterprises can have the following loans such as OCC, SOD-RE, LC, BG or HPL (M).
The Services sector enterprises can have SOD-RE or HPL(M). The OCC should not be sanctioned for the Services sector units.

Limits

The below table provides the maximum limits for respective loans:

OCC	Rs.20 Lakhs
SOD-RE	Rs.20 Lakhs
LC	Rs.20 Lakhs
BG	Rs.10 Lakhs
HPL(M)	Rs.20 Lakhs

Note: All the three put together must not exceed Rs. 50 Lakhs.

MSME Easy Loan Details

The following are the details of Interests, charges, fees and Commissions:

S.No.	Type	Loan Details
1.	Interest Rate	The Rate of Interest is based on various factors such as Credit Score, Coverage score, etc. To know the Rate of Interest, the applicant can contact the nearest KVB Branch.
2.	Loan Amount offered	As per assessment and bank’s internal exposure policy
3.	Margin	OCC-25% on stocks/40% on Receivables. LC/BG-15% cash margin. HPL(M)-20% on new machinery/50% on old machinery (not older than 3 years) to be purchased out of bank finance. SOD-RE-33.33% (against 40% for others) on primary security i.e. residential/commercial/industrial land and building property.
4.	Validity Tenure	OCC/SOD/LC/BG - Valid for one year and to be renewable once in a year. HPL(M) - Maximum repayment tenor is 3 to 7 years (including holiday period) based on the cash flows.
5.	Primary Security	OCC/LC - Stock of raw material, stock-in-process, semi-finished & finished goods & Receivables. HPL(M) - Machinery to be purchased out of bank finance. SOD-RE - Residential/commercial/industrial land and building property with a minimum cover of 150% of the limit.
6.	Collateral Security	OCC/LC/BG - Residential/commercial/industrial land and building property with a minimum 100% of aggregate exposure or CGTMSE cover. HPL(M) - Residential/commercial/industrial land and building property with a minimum 100% of aggregate exposure or CGTMSE cover. SOD-RE - Entire current assets.

Processing Fees

Waiver of charges for loans up to Rs. 5 Lakhs as per RBI norms.
All other cases – 75% of applicable charges, i.e., 25% concession.

Online Application Procedure

To apply for the Karur Vysya Bank MSME Easy Loan follow the below procedure:

Step 1: The applicant has to visit the official portal using this link.

Step 2: The applicant must fill out the MSME Easy Loan application form with all the required details and attach the specified documents as required.

Step 3: After completing the application form, click on the submit button. Upon submission, the applicant will receive an acknowledgement for further reference.

Offline Procedure

In case of visiting the bank branch, the applicant will have to get the MSME Easy Loan from the concerned official and have to attach all the documents with the form. After completing, the verification process will be done by the bank official as they will process the request further.

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Frequently Asked Questions

Common questions about KVB MSME Loan.

The KVB MSME Easy Loan is a loan product offered by Karur Vysya Bank aimed at providing a comprehensive solution for Micro and Small Manufacturing units with an annual turnover of less than Rs. 100 Lakhs. It offers working capital and term loans for Small and Medium Enterprises engaged in the manufacturing and service sectors.

Existing Micro & Small manufacturing and service units (other than traders) whose turnover is less than Rs. 100 Lakhs in the previous financial year and have been in existence for a minimum of one year are eligible to apply for the KVB MSME Easy Loan.

The KVB MSME Easy Loan offers various loan types, including OCC (Overdraft Cash Credit), SOD-RE (Secured Overdraft against Residential/Commercial Property), LC (Letter of Credit), BG (Bank Guarantee), and HPL(M) (Hire Purchase Loan for Machinery).

The maximum loan limits for the KVB MSME Easy Loan are as follows: OCC - Rs. 20 Lakhs, SOD-RE - Rs. 20 Lakhs, LC - Rs. 20 Lakhs, BG - Rs. 10 Lakhs, and HPL(M) - Rs. 20 Lakhs. However, the total exposure should not exceed Rs. 50 Lakhs.

The interest rate for the KVB MSME Easy Loan is determined based on various factors, such as the applicant's credit score, coverage score, and other factors. The applicant can contact the nearest Karur Vysya Bank branch to know the applicable interest rate.

The margin requirements vary depending on the loan type. For OCC, it is 25% on stocks and 40% on receivables. For LC/BG, it is a 15% cash margin. For HPL(M), it is 20% on new machinery and 50% on old machinery (not older than 3 years). For SOD-RE, it is 33.33% on the primary security (residential/commercial/industrial property).

The validity tenure for OCC, SOD, LC, and BG is one year, and these loans need to be renewed annually. For HPL(M), the maximum repayment tenor is 3 to 7 years (including the holiday period), based on the cash flows.

The primary security requirements vary based on the loan type. For OCC and LC, it is the stock of raw materials, stock-in-process, semi-finished and finished goods, and receivables. For HPL(M), it is the machinery to be purchased with the loan amount. For SOD-RE, it is the residential/commercial/industrial property with a minimum cover of 150% of the limit.

Yes, collateral security is required for the KVB MSME Easy Loan. For OCC, LC, BG, and HPL(M), it is residential/commercial/industrial property with a minimum 100% of the aggregate exposure or CGTMSE cover. For SOD-RE, the entire current assets serve as collateral security.

You can apply for the KVB MSME Easy Loan either online or offline. For the online application, visit the official Karur Vysya Bank portal, fill out the MSME Easy Loan application form, attach the required documents, and submit. Alternatively, you can visit the nearest Karur Vysya Bank branch, obtain the MSME Easy Loan application form, complete it with the necessary documents, and submit it to the bank official for further processing.