Overview about Karnataka State Cooperative Apex Bank Professional Loan
Karnataka State Co Operative Apex Bank Ltd, was setup to provide financial aid for the agricultural sector and related activities in Karnataka. The main aim is to provide short and medium term agricultural loans, to help farmers carry on their activities without the worry of financial hassles. The bank also provides loans such as Cash Credit loans in order to help farmers with the agro processing and marketing activities.
What is the purpose of the Karnataka State Cooperative Apex Bank Professional Loan?
This loan is designed with the intention of providing hassle free financial help to professionals and self-employed individuals. The loan will be provided to individuals with collateral security. The loan amount can be used for expansion or improvement of their business, and the bank will also serve as a guarantee for any business need related to their profession.
Eligibility criteria for the Professional Loan is:
Any individual, proprietorship, partnership firm, and private limited companies are eligible for this loan.
Individuals from any profession, self-employment, or service sector, apart from trading, manufacturing or processing units, or transport operators.
Features and benefits of the Professional Loan are:
The maximum loan amount offered under this product will be Rs. 100 lakhs
Repayment term of the loan will be a maximum of 60 months or 5 years.
15% of the project cost that is provided by the applicant will be considered as a margin by the bank, or the total exposure in both fund and non-fund based not exceeding the sanctioned loan amount.
The loan can be repaid like an overdraft as well in 12 months subject to a yearly review.
The rate of interest charged will be 14% per annum and is offered at the bank’s discretion, which is subject to change.
A penal interest will be charged 2% of the amount that is overdue.
1% processing charges will be applicable on the amount sanctioned.
There will also be a 1% pre closure charge on the outstanding balance.
As security towards this loan, urban immovable property will need to be provided, with a value of 200% of the sanctioned amount.
Assets will need to be hypothecated to the bank towards the loan amount.
Documents that may be required by the bank for the Professional Loan are:
Duly filled out loan application form
The applicant’s income proof.
Address proof such as Passport, Driver’s license, Ration card, etc.
Identity proof such as Voter’s ID, Passport, Driver’s license, PAN card etc.
Passport sized photographs of the applicants
IT returns of the applicant for the last 2 years.
Other documents may also be required by the bank during the application process