Kerala Financial Corporation (KFC), State owned Financial Institution has, declared a new scheme to assist MSME units located at Industrial Estates. The scheme has been named as ‘Support MSMEs’.
Manufacturing and service industries are eligible. Loans will be to setup new units at industrial estates or modernize/ expand the existing units. KFC will provide term loans, short-term loans and working capital loans. It will also provide guarantees for MSME units.
“The main objective of KFC is to assist MSMEs. Since most of the good MSMEs are established at Industrial Estates, the Corporation has come out with the special loan scheme” said Shri. Sanjay Kaul IAS CMD KFC.
The upper limit of loans will be Rs.20 crore for companies. For partnership firms and proprietary concerns the upper limit will be Rs.8 crore. The upper limit for the guarantees will be Rs.50 crore.
Term loans for new units will be processed with benchmark norms applicable to existing ‘Term loans under General Scheme’ and the Promoters Contribution required will be 34%. However, if the project cost is arrived at without including the investment in land, promoters contribution required will be 25% only.
Existing units are eligible for loan up to 90% of their modernization/ expansion project cost under the modernization scheme. The parameters of working capital loans and short term loans shall be as per the corresponding general scheme.
No separate collateral is required for all the facilities, including working capital loans and non-fund based facilities, if the primary property is having sufficient value, except in the case of Hire Purchase of land. Furthermore, loans will be covered under CGTMSE Scheme, wherever required. The applicants shall apply online at www.kfc.org.
“The scheme has been tailor-made to help the industries to avail hazzle free credit facilities. KFC to set apart Rs.500 crore pool for the scheme” Shri. Sanjay Kaul added.