LoanDepartment of Finance, Government of KarnatakaVerified 21 May 2026

Karnataka State Financial Corporation — MSME Term Loan

The KSFC MSME Term Loan offers financial assistance to MSMEs for projects, expansion, and modernization with flexible loan limits and favorable interest rates. Special schemes are available for women, SC/ST entrepreneurs, and technology upgrades.

Maximum amount
₹1.0Cr
Typical payout
₹75.0L
Processing time
2–6 weeks
Application window
Open year-round

Check if your startup qualifies for Karnataka State Financial Corporation — MSME Term Loan

Answer a few questions about your company and get a free, personalised eligibility report across all active government schemes — including KSFC Loan.

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Eligibility criteria

Company type
Private Limited, LLP, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Karnataka
Sectors
manufacturing, food_processing, textile, chemicals, engineering, agritech, pharma, services, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Completed Application
Duly filled KSFC Term Loan Application Form with recent passport-size photos of all promoters. This is mandatory.
Tip: Ensure all sections are completed accurately and affix recent photos.
2
Identity & Address Proof
PAN Card required for all promoters/partners. Aadhaar alone is not sufficient without utility bills.
Tip: Double-check that address details match across all documents submitted.
3
Business Registration Proof
For firms: Partnership Deed; for Pvt Ltd companies: Memorandum and Articles of Association with Company Formation Letter. Mandatory.
Tip: Ensure documents are duly registered and available in certified copies.
4
Tax Registrations
Active GSTIN registration certificate and corresponding GST filing history. Mandatory.
Tip: Ensure GST filings are up-to-date and consistent with financials.
5
Financial Statements
Audited Balance Sheets and Profit & Loss accounts of the business for the last 3 financial years. Mandatory.
Tip: Obtain these from your CA well in advance to avoid delays.
6
Bank Statements
Latest 12 consecutive months of operative bank account statements. Mandatory.
Tip: Highlight transactions that show business revenue and expenditures.
7
KYC Documentation
Bio-Data and verified Net Worth statements of all promoters and guarantors.
Tip: Ensure that details match the IDs and financial records submitted.
8
Project Profile
Detailed Project Report (DPR) detailing business viability, cost of project, and source of finance. Mandatory.
Tip: Use clear headers and data-supported financial projections.
9
Land & Property Records
Registered Sale Deed, Lease Deed, or Government Allotment Letter for the industrial site. Required if applicable.
Tip: Ensure documents are recent and accurately reflect current ownership.
10
Civil Infrastructure Documents
Approved building blueprint plans and certified civil construction cost estimates. Required if applicable.
Tip: Work with certified architects and engineers to ensure accuracy.
11
Machinery Quotations
Proforma invoices and competitive commercial quotes for proposed plant and machinery acquisitions. Required if applicable.
Tip: Gather multiple quotes to demonstrate competitive pricing.
12
Chartered Accountant Certificate
A formal CA certificate certifying the exact capital investment already deployed in the project by the promoters. Mandatory.
Tip: Coordinate with your CA early to prepare and certify the details.
13
Social Demographics Proof
Valid Caste Certificate issued by competent state authorities for SC/ST entrepreneurs seeking interest subvention. Required if applicable.
Tip: Ensure the certificate is valid and issued by the appropriate authority.
14
Collateral Property Records
Title deeds, non-encumbrance certificates, and tax receipts for assets offered as third-party collateral security. Required if applicable.
Tip: Verify the encumbrance status and update tax receipts before submission.

How to apply for KSFC Loan

1
Visit the Karnataka State Financial Corporation Portal to download the primary screening checklists.Open portal
2
Download application forms including Bio-data, Net Worth, and Project Profiles via the KSFC Documents Portal.Open portal
3
Navigate to the KSFC Customer Login Portal to create your corporate profile and log your digital request.Open portal
4
Submit duplicate sets of physical application dossiers and a processing fee cheque to your designated regional KSFC branch.
5
Monitor progress via the KSFC Loan Application Status tracker using your assigned reference code.

Frequently asked questions

Who is eligible for KSFC Loan?

KSFC Loan is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Karnataka. Udyam (MSME) registration is required.

How much funding does KSFC Loan provide?

KSFC Loan provides up to ₹1.0Cr. Most applicants receive around ₹75.0L.

How long does KSFC Loan approval take?

The typical processing time from submission to disbursement is 2–6 weeks.

Is KSFC Loan currently accepting applications?

Yes, KSFC Loan is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for KSFC Loan?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

Ready to apply for Karnataka State Financial Corporation — MSME Term Loan?

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Information is based on publicly available scheme guidelines. Last verified 21 May 2026. Always verify with official sources before applying.