KVB-MSME-Easy-Loan

KVB MSME Easy Loan

Post by: Sinduja Shankar in Business Startup
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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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Post by Sinduja Shankar

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

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