The Dharwad-headquartered Karnataka Vikas Grameen Bank (KVGB) has launched a loan product to meet the requirements of small and micro enterprises to set up small hotels and restaurants.

Launching the loan product ‘Vikas Annapoorna’ in Dharwad on Tuesday, S Ravindran, Chairman of KVGB, said the bank has designed the loan product to extend credit facilities to small hotels, restaurants, fast-food centres, bakeries, canteens and catering services, among others.

The loan will be for setting up new units and for upgrading existing ones.

Stating that up to ₹10 lakh loan will be provided under ‘Vikas Annapoorna’, he said the bank will not insist on collateral security for such loans.

The rate of interest for loans up to ₹5 lakh will be 11.5 per cent, and it will charge interest of 12 per cent for loans above that limit.

Ravindran said the bank has also launched ‘Vikas Mahila Snehi’ loan for women to buy two- and four-wheelers. Women will get loans up to 80 per cent of the ex-show room price of the vehicle.

A rate of interest of 10 per cent will be charged for loans under the ‘Vikas Mahila Snehi’. The loan will be repayable over a period of five years in 60 monthly instalments, he said.