Sarkari Yojana
Direct Loans For Business Enterprise
About Direct Loans For Business Enterprise
This scheme’s chief purpose is to extend loan-based financial help to members of the State’s Religious Minority Communities, enabling them to launch new businesses or grow ones they already run. Eligible entrepreneurs receive loans for starting or expanding their businesses against a mortgage of property (building or land). A loan is granted only when property (building/land) is mortgaged to the corporation, and that property must be worth at least as much as the loan. Only one person per family can receive the Business/Enterprise Loan. Where family income is below Rs 8.00 lakhs, a loan of up to Rs 20 lakhs is given at 4% interest. Where family income falls between Rs 8.00 lakhs to 15 lakhs, a loan of up to Rs 20 lakhs is given at 6% interest. The scheme covers people from the State Religious Minority Communities, namely those belonging to the Muslim, Christian, Sikh, Buddhist, and Jain Communities.
Applicants must meet these eligibility conditions
- They must reside in Karnataka state
- They must be from the minority community
- They must be part of a minority community
- They must be aged between 18 to 55 years
Only a single family member can obtain the Business/Enterprise loan
When applying, documents showing the business is viable must be furnished, and further documents are needed once the applicant is selected. Documents Required While Applying
- Aadhaar copy serving as residence proof
- Caste Certificate from the competent authority
- Income Certificate from the competent authority
- Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed for the property
- Project report/Profile of activities prepared by a CA(Chartered Accountant)
- Quotations for the project
- Licence from the relevant authorities for the property to be mortgaged
- The building’s Khata extract and Khata certificate, or the land’s Mutation copy.
- Phodi/Partition deed for revenue lands along with phani-RTC
- Encumbrance Certificate-(EC)/Form No.15
- Current tax-paid receipts issued by local bodies
- Guidance value of the land certified by the competent authority
- Consent from family members for pledging the title deed, together with the family tree
- For a building, a Valuation report from a registered valuer- Valuation Certificate
- Self-Declaration Form
Documents Required After Selection
- Committee Approval Order
- Applicant’s Affidavit
- Joint Affidavit of the Beneficiary & the Guarantor
- Demand Promissory Note (DPN)
- Hypothecation & Mortgage Deed
- Letter of Repayment
- Letter of Guarantee
- Loan Agreement
- Consideration of Receipt
- Borrower’s acknowledgment of debt
Scheme Overview
State Government
Karnataka Minorities Development Corporation Limited, And Banks
Individual
01 Jan 2022
Scheme Details
Eligibility Requirements
To qualify for Direct Loans For Business Enterprise, applicants must satisfy the following conditions:
The applicant must live in Karnataka state
The applicant must live in Karnataka state
The applicant must be from the minority community
The applicant must be from the minority community
The applicant must be a member of a…
The applicant must be a member of a minority community
The applicant must be aged between 18 to…
The applicant must be aged between 18 to 55 years
Just one family member can receive the Business/Enterprise…
Just one family member can receive the Business/Enterprise loan
Documents Required
Applicants should keep the following documents ready before starting the application:
Documents Required While Applying
A copy of the Aadhaar card to prove…
A copy of the Aadhaar card to prove residence
A Caste Certificate granted by the competent authority
A Caste Certificate granted by the competent authority
An Income Certificate granted by the competent authority
An Income Certificate granted by the competent authority
Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed relating…
Lease deed/Partition deed/Release deed/Gift deed/Rental agreement/Sale deed relating to the property
A project report/Profile of activities prepared by a…
A project report/Profile of activities prepared by a CA(Chartered Accountant)
Price quotations connected with the project
Price quotations connected with the project
A licence from the relevant authorities covering the…
A licence from the relevant authorities covering the property offered for mortgage
The building's Khata extract and Khata certificate, or…
The building's Khata extract and Khata certificate, or the Mutation copy for land.
Phodi/Partition deed for revenue lands, plus phani-RTC
Phodi/Partition deed for revenue lands, plus phani-RTC
Encumbrance Certificate-(EC)/Form No.15
Encumbrance Certificate-(EC)/Form No.15
Current tax-paid receipts from local bodies
Current tax-paid receipts from local bodies
The land's guidance value as certified by the…
The land's guidance value as certified by the competent authority
A no-objection from family members for pledging the…
A no-objection from family members for pledging the title deed, along with the family tree
For a building, a Valuation report prepared by…
For a building, a Valuation report prepared by a registered valuer- Valuation Certificate
A signed Self-Declaration Form Documents Required After Selection
A signed Self-Declaration Form Documents Required After Selection
The Committee Approval Order
The Committee Approval Order
An affidavit sworn by the applicant
An affidavit sworn by the applicant
A Joint Affidavit by the Beneficiary & the…
A Joint Affidavit by the Beneficiary & the Guarantor
A Demand Promissory Note (DPN)
A Demand Promissory Note (DPN)
The Hypothecation & Mortgage Deed
The Hypothecation & Mortgage Deed
A Letter of Repayment
A Letter of Repayment
A Letter of Guarantee
A Letter of Guarantee
The signed Loan Agreement
The signed Loan Agreement
Consideration of Receipt
Consideration of Receipt
The Borrower's acknowledgment of debt
The Borrower's acknowledgment of debt
The Guarantor's acknowledgment of debt
The Guarantor's acknowledgment of debt
A memorandum of deposit of title deeds/equitable mortgage…
A memorandum of deposit of title deeds/equitable mortgage deed
A Blood Relations Power of Attorney (where the…
A Blood Relations Power of Attorney (where the property is not held in the applicant's name)
2022-01-01
How to Apply
Online Application
Applicants can apply for Direct Loans For Business Enterprise through the online application process outlined below.
Applying involves two stages — an online part followed by an offline part.
Application Portal: Open Application Portal ↗
Open the official website and complete the application…
Open the official website and complete the application form.
Take a printout of the filled form
Take a printout of the filled form.
Hand this form, together with the supporting documents,…
Hand this form, together with the supporting documents, to the Selection Panel of your district.
Once the Selection Panel approves, the loan is…
Once the Selection Panel approves, the loan is credited to your bank account.
Offline Application
Applicants can apply for Direct Loans For Business Enterprise through the offline application process outlined below.
Application Process
Banks that extend MSME loans under this scheme can also be approached; simply visit the bank and ask for a loan under the scheme.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.