KMDC Direct Loans for Business Enterprise — Up to ₹20L — Frequently Asked Questions

Eligible applicants can receive a business or enterprise loan of up to ₹20 lakh. The exact amount sanctioned depends on your proposal and on the value of the property you offer as mortgage, since the security has to be worth at least as much as the loan.

The rate is decided by your annual family income. Households earning below ₹8 lakh a year pay 4% per annum, while those earning between ₹8 lakh and ₹15 lakh a year pay 6% per annum. Both rates are subsidised compared with ordinary commercial lending.

You need to be a resident of Karnataka and a member of one of the State's Religious Minority Communities — Muslim, Christian, Sikh, Buddhist or Jain. Your age must be between 18 and 55 years, your family income cannot exceed ₹15 lakh per annum, and only one person from each family is permitted to take the loan.

No. This is a debt facility, so KMDC lends you money that you repay with interest. The corporation does not acquire any shareholding, ownership or profit participation in your enterprise, which means the funding is completely non-dilutive.

Yes. The loan is sanctioned only against mortgage of property to KMDC, and that property can be a building or land. Its value must not be lower than the loan amount you are requesting, so security is effectively the biggest practical condition in the scheme.

No. Only one member of a family is eligible to receive the business or enterprise loan under this scheme, so a single household cannot draw two loans even if more than one person runs a business.

Plan on submitting residential proof such as an Aadhaar copy, caste and income certificates issued by competent authorities, and the property papers — lease deed, sale deed or mutation copy if land is being mortgaged. You will also need a project report or activity profile from a Chartered Accountant along with quotations for the proposed project, licences connected to the mortgaged property, up-to-date tax-paid receipts, a valuation report by a registered valuer for a building mortgage or guidance value details from the competent authority for land, a no-objection certificate from family members permitting the title deed to be pledged, a family tree, and a self-declaration form. If you are approved, further papers follow, including the committee approval order, affidavits from the applicant, joint beneficiary and guarantor, a demand promissory note, the hypothecation and mortgage deed, a letter of repayment, a letter of guarantee, the loan agreement, a consideration receipt and an acknowledgment of debt from the borrower.

There is no closing date. The scheme operates on a rolling basis and stays open throughout the year, so applications can be submitted whenever your documents and project report are ready.

Applications can be filed online through the KMDC portal at https://kmdconline.karnataka.gov.in/Portal/home. An offline submission route also exists, and the specifics for that should be confirmed directly with the Karnataka Minorities Development Corporation.

The scheme is open to entrepreneurs starting or expanding businesses across a range of sectors, and no specific industry restrictions are mentioned. What gets assessed is your background as an applicant and the viability of your business proposal rather than the sector you have chosen.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for KMDC Direct Loans for Business Enterprise — Up to ₹20L, though having it can strengthen your application and unlock other benefits.

KMDC Direct Loans for Business Enterprise — Up to ₹20L is offered by Karnataka Minorities Development Corporation (KMDC), a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.