Loan schemes/Interest Rates

The Corporation would endeavour to extend comprehensive services including term loan, working capital and special schemes that may be required for benefit of the SME sector. The Interest and principal are to be paid in monthly rests for all schemes. The extent of financing is based on the type of the project and credit rating. Interest rates, extent of financing and maximum period of loans are given below:

KFC Interest rates

1. Scheme for Term Loan for industrial activities
  To meet long term requirements for projects
All new and existing enterprises, eligible to be funded by the Corporation, except CRE projects
2. Working Capital Revolving Fund Loan
   To provide working capital, on a revolving basis.All new and existing enterprises, eligible to be funded by the Corporation, except CRE projects
3. Scheme for Financing Construction Activities & Housing Projects

- Promoters should be financially sound and successful in their other business areas.
- Promoters should be prompt in servicing loans availed by them.
- Existing clients of the Corporation will get preference.
- Minimum cibil s core shall be 600.

4. Short Term Loan Scheme
   - New and existing units.
- Should be prompt in servicing their liability, if any, in this and other projects of theirs
5. Scheme for Special Working Capital Assistance to Hotels
   To provide short term working requirements of well run hotels with minimum procedures.
6. Modified Scheme for Financial Assistance to Contractors
   To provide financial assistance to eligible customers for execution of eligible activities and to offer guarantee for the eligible activities, either before start of work or during the work period
7. Scheme for Financial Assistance for Producing Feature Films & TV Serials
   To extent short term finance to meet costs in producing feature films, documentaries and TV serials.
8. Vehicle Loan Scheme
   Purchase of all types of vehicles which are used for commercial purposes. Purchase of two wheelers, if required as part of the project and if their number is at least ten.
9. Working Capital Term Loan Scheme
   Existing and New Enterprises in Manufacturing & Service Sectors, except CRE projects.
10. Scheme for Modernisation, Upgradation, Expansion and Diversitation of Existing Manufacturing Units/Hotels/Hospitals
   To provide financial assistance for modernization, upgradation, expansion and diversification so as to enable the existing enterprises keep pace with the current requirements in technologies, amenities and market requirements
11. Special Revolving Fund Scheme for Existing Customers
   To meet urgent credit requirements of existing customers of the Corporation, connected with the working of the enterprise and with proper justification
12. Receivable Finance Scheme
   To ease the cash flow of MSME units by discounting bills for a maximum period of 180 days
13. Liberalised Scheme for Financing up to Rs 100 lakhs to Units under KSEDM
   To finance the expansion/scaling up of enterprises set up under KSEDM to meet their requirements for purchase of fixed assets, working funds for marketing, launch, salary, other eligible tangible and intangible expenses.
14. Startup Support Scheme
   A startup is a newly formed entity, the purpose of which is to develop new, usually innovative products or services in uncertain circumstances. If it satisfies a new need, present in a broader area or even globally, it also has great growth potential. Startup entrepreneurship is crucial because of innovations, new jobs and bringing competitive dynamics into the business environment. Growth is mostly generated by highly ambitious entrepreneurs who find and realize promising business opportunities. Their companies grow quickly and so increase the employment rate. They also contribute to the promotion of the research and innovation system and introduce values of pro-activity into the society. Being the developmental agency of the State, in line with Government policy towards Startups, Kerala Financial Corporation aims to support such Startups with all necessary hand holding and mentoring support. Since the CGTMSE limit available to the Corporation is Rs.10 Crores, it is proposed to extend the facility to 100 deserving startups.
15. Scheme for Financing Working Capital Requirements of Start-ups for Executing Purchase Orders
   -Should be a Start-up.Start-up is an entity which was set up less than 7 years from the date of application and whose turnover has never exceeded Rs 25 crores in any financial year.
-Constituted as a Private Limited Company or Limited Liability PartnershipPrivate Limited Companies have greater acceptability
-The applicant entity shall be a MSME, registered with the Government.
-The Applicant Entity has firm purchase orders from Reputed Companies.
-The Applicant Entity should have successfully executed purchase orders worth, value of, three times the amount applied for.
-Preference shall be given to proposals recommended by Kerala Startup Mission (KSUM)
16. Scheme for Funding Venture Debt for IT Hardware & Software Enterprises
   -Constituted as a Private Limited Company or Limited Liability PartnershipPrivate Limited Companies have greater acceptability
-The applicant entity shall be a MSME, registered with the Government.
-The Applicant Entity has undergone due diligence by a SEBI accredited Venture Capital Fund and they have confirmed the amount to be invested and the mode of the same.
-Preference shall be given to proposal recommended by Kerala Startup Mission (KSUM)
17. NDPREM Scheme( Norka Department Project for Rehabilitation of Return Emigrants)
   To provide need based credit facilities to beneficiaries identified by NORKA ROOTS for setting up and operating any Service /Manufacturing activity coming under MSME. The loan eligibility under this scheme is 75% of the project cost subject to a maximum loan of Rs 22.50 Lakhs per borrower. NORKA ROOTS shall deposit 15% of the project cost subject to a maximum of Rs 3.00 lakhs with KFC as back ended subsidy. The subsidy will be released/ appropriated to the borrowers loan account, provided the borrowers business remained in operation for a period of 4 years from the date of sanction of subsidy amount or when due EMI equals the subsidy amount. NORKA ROOTS shall also provide 3% interest subvention on the loans extended by the Corporation to the beneficiaries of NDPREM.

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