Purpose
- Micro Enterprises play an important role in employment creation and income generation. Keeping this in view, the Karakoram Cooperative Bank has introduced a microenterprise financing scheme. This scheme would, hopefully, play a great role in income generation and reducing unemployment. This scheme will cover a wide range of enterprises suiting the local environment, resources and talent
Sectors covered
- Agro-based businesses like fruit processing, orchards/ fruit nurseries, land reclamation, fishponds, poultry farms, dairy farms etc.
- Furniture manufacturing & supplies.
- Installation of service stations, auto Workshops, Auto stores.
- Net cafe, Hardware stores, I.T Clinics and related business.
- Establishment of Medical & pharmaceutical stores.
- Construction of shopping centers.
- Establishing of printing press.
- Readymade Garment and cloth shops.
- Gems jewelry cutting and polishing of semi precious stones business.
- Carpet, Patti/shawls weaving and handicrafts.
- Water Filtration plant/bottling & packaging.
- Paper re-cycling.
- LPG distribution outlets.
- Bee farming.
- Franchises, Distribution and wholesales business.
Eligibility
- The person/persons applying for Microenterprise Finance should either be a bonafide resident(s) of Gilgit-Baltistan or have permanent and established business connection in the areas.
- He/she should be a sane person of 21 – 65 years.
- He/she is not a defaulter of any other financial institution. (e-CIB).
- He/she has not otherwise been disqualified for availing loan or declared bankrupt by any Court.
- He/She is not the loaned of any other branch of KCB.
- He/She himself/herself must have the experience of relevant field/project or declared his/her prospective management team.
Max Limit and Tenure
- Rs. 5 million for Plastic free GB related Business and Rs. 2 million for others.
- 05 years (3 months grace period)
Interest rate
- KIBOR +5% per annum subject to change .
Equity
- The borrower will have to contribute 30% as equity.
Security
- Tangible securities such as land/building, term deposit certificates, Defense saving certificates or lien of any other deposit held with the bank. Security of landed property will be accepted at a margin of 30%.
Repayment
- Half yearly repayment schedules will be issued at the time of disbursement of the loan. Borrower should acknowledge the receipt of a copy of repayment schedule.
Insurance
- All Microenterprise financed under this scheme will comprehensively be insured by the borrower through an insurance company appearing on the panel of the bank.
End use verification
- In order to ensure proper utilization of the loan, end use inspections will be conducted by the authorized officers of the bank at regular intervals.