Kerala Financial Corporation introduced this scheme mainly to provide timely and adequate working capital at competitive rates for small and medium scale units.

ELIGIBILITY:

Non   KFC  assisted  units  should have been in existence for 4 years and made net profits in the preceding two years. 
For  assistance  exceeding  Rs. 20  lakh,  the unit should be in existence for 4 years with  rising   turnover  and  net  profits  in  the preceding 2 years and a record  of prompt repayment to Banks and Financial institutions

AMOUNT OF ASSISTANT:

The maximum limit of working capital term loan will be Rs.25 lakh.

RATE OF INTEREST:

(Click here to get Interest rate structure)

SECURITY:

First charge by way of hypothecation of current assets such as raw materials, finished goods and spares. 
A charge on fixed assets namely  land, building, plant and machinery etc. 
Collateral security of 150% of the WCTL. 
All the directors/partners should give personal guarantees for the loan.

REPAYMENT PERIOD:

The  duration  of  the  assistance  will  be  a maximum of 6 years including a gestation period upto six months.

SANCTIONING AUTHORITY:

As  for  term  loans,  all  cases  up  to  Rs.100  lakh  are  processed  and  sanctioned  at  the concerned  District  Office  (BO)  itself.  Proposals  exceeding  this amount are sanctioned at Head  Office  by  GM/MD/Board  as  the  case  may  be.   However, the  BO  will  process all applications upto Rs.75 lakh.