KFC – CUB Working Capital Loan Scheme
| Scheme Name | KFC Working Capital Loan Scheme (under KFC CUB arrangement) |
| Nature of Loan | Advances as Working Capital (WC) facilities. |
| Objective | To provide timely and adequate Working Capital (WC) assistance at competitive interest rates to eligible MSMEs for meeting their WC requirements. |
| Eligible Units | • All Industrial Concerns defined in the SFCs Act 1951. • Must have an MSME-Udyam Registration (exempt for large industries). • Must have GST registration and file GST returns regularly (exempt for MSMEs not legally required to register for GST). • Must possess necessary licenses/permits to operate. • All Micro, Small, and Medium enterprise Traders with MSME-Udyam registration are also eligible. |
| Eligibility Criteria | (a) Existing Customers of KFC: • Existing standard category customers who do not have working capital facilities with any Bank. • Existing standard category customers who have working capital facilities with a Bank but are willing to switch to KFC for better terms. (b) New Customers to KFC: • The unit must be in commercial operation. • Must have registered cash profit as per the latest financials. • Existing loan accounts with Banks must be in the standard category. • The CIBIL score of all promoters/the entity must align with the Credit Manual. |
| Loan Limits | Minimum loan amount: Rs 5 lakh. Maximum limit: Rs 5000 lakh (Rs 50 crore). |
| Rate of Interest | Floating rate linked to KFC’s Base Rate, with monthly rests. |
| Processing Fee | • A non-refundable processing fee of 0.50% (plus GST) of the sanctioned limit is collected at the time of sanction. • Further, 0.25% p.a. (plus GST) of the limit is charged upon subsequent renewal/review, or after a period of one year, whichever is earlier. |
| Review of Facility | KFC retains the sole discretion to review the operations of the limit from time to time. Based on this, KFC has the absolute right to reduce or suspend the limit at any time without assigning any reason. |
| Internal Rating | Minimum internal rating required: 50%. |
| Foreclosure Premium | Not applicable, except in the case of a Bank takeover. |
| Other Conditions | • The borrower must close all other OD (Overdraft), CC (Cash Credit), and Current Accounts with Banks once the Working Capital Term Account (WCTA) with City Union Bank (CUB) becomes operational, as per RBI guidelines. • The borrower must invariably route all business transactions through the WCTA. |