The Direct Loans For Business Enterprise scheme by the Government of Karnataka is designed to provide financial assistance in the form of loans to individuals belonging to the State’s Religious Minority Communities. The loans can be used to start or expand a business by mortgaging property (either building or land). This scheme primarily aims to encourage entrepreneurial growth and help individuals from minority communities to establish or scale their businesses.
Benefits
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Loan Amount:
• Up to ₹20 lakhs
• Interest Rate:
• 4% for applicants with a family income below ₹8.00 lakhs
• 6% for applicants with a family income between ₹8.00 lakhs and ₹15 lakhs -
Loan Requirements:
• Loans will be provided based on the mortgage of property, which must not be lower than the loan amount.
• Only one member per family can avail of the loan.
Eligibility
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Residency: Applicant must be a resident of Karnataka.
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Community: Applicant must belong to a minority community (Muslim, Christian, Sikh, Buddhist, and Jain).
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Age: Applicant must be between 18 to 55 years of age.
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Family Limitation: Only one member of the family is eligible for the loan under this scheme.
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Income Limit:
• If the applicant’s family income is below ₹8.00 lakhs, the loan will be provided at 4% interest.
• If the applicant’s family income is between ₹8.00 lakhs and ₹15 lakhs, the loan will be provided at 6% interest. -
Non-Eligibility: Applicants who are loan defaulters of the Karnataka Minorities Development Corporation (K.M.D.C.) are not eligible.
Exclusions
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Loan Defaulters: Individuals who have defaulted on loans from K.M.D.C. will not be eligible for this scheme.
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Property Valuation: The property to be mortgaged must have a value equal to or more than the loan amount.
Application Process
The application process is in two parts: online and offline.
Online Process:
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Visit the official website of the scheme.
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Fill in the online application form.
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Submit the form and take a printout for further submission.
Offline Process:
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Print the filled application form.
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Submit the form along with the required documents to the Selection Panel of your district.
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Once approved by the Selection Panel, the loan amount will be credited to the applicant’s bank account.
Documents Required
Documents for Application:
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Aadhaar Card (residential proof).
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Caste Certificate (issued by the competent authority).
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Income Certificate (issued by the competent authority).
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Property Documents:
• Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed.
• Khata extract and Khata certificate (for building) or Mutation copy (for land).
• Encumbrance Certificate (EC)/Form No.15. -
Project Report/Profile from a Chartered Accountant (CA).
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Tax Receipts: Up-to-date tax-paid receipts from the local bodies.
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Guidance Value of the land from the competent authority.
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Valuation Report (for buildings) from a registered valuer.
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Self-Declaration Form.
Documents After Selection:
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Committee Approval Order.
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Affidavit from Applicant.
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Joint Affidavit from the beneficiary and guarantor.
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Demand Promissory Note (DPN).
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Hypothecation & Mortgage Deed.
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Letter of Repayment.
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Loan Agreement.
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Acknowledgment of Debt from both borrower and guarantor.
Frequently Asked Questions (FAQs)
Q: Who is eligible for this scheme?
A: Individuals who are residents of Karnataka, belong to a minority community, and are between 18-55 years of age are eligible.
Q: What are the benefits under this scheme?
A: Loans up to ₹20 lakhs at 4% interest for applicants with a family income below ₹8 lakhs, and 6% interest for applicants with a family income between ₹8-15 lakhs.
Q: How do I apply for the loan?
A: The application can be made online through the official website and then submitted offline with the required documents.
Q: What documents are required for the application?
A: Documents like Aadhaar, income certificate, caste certificate, property documents, project report, and a self-declaration form are required.
Q: Is there any family limit for this loan?
A: Yes, only one member of a family can avail of the loan.