A revolving fund of Rs 3,250-crore has been proposed to set up by the Karnataka government to provide loans to urban local bodies (ULBs), including city corporations to take up civic works. The fund, when realised, will lend loans to civic bodies in the state at six per cent rate of interest to take up development works.    Karnataka Urban Development Minister Vinay Kumar Sorake said this in Bangalore on October 29.    The fund's objective is to give loans to those municipalities facing severe financial shortage to take up civic works and development works. such as drinking water, solid waste management, road connectivity, land acquisition and underground drainage.    The proposal is yet to go before the State Cabinet for approval. The Minister said taht the department has received funds from the Union government and international funding agencies and these funds will be given to urban local bodies which are facing a funds crunch.