Thiruvananthapuram, July 28: Kerala Financial Corporation (KFC), the Government-owned leading Financial Institution, has launched a new loan scheme to assist Agro-based industries. Under the scheme, loans up to Rs 10 crore can be availed @5% annual interest, a press release said on Friday. The scheme was declared by Finance Minister K Balagopal while presenting the Budget 2022-23.
MSME units from Agro, Dairy & Animal Husbandry related industries, Agro-based-Startups, processing/ marketing/ trading of Agro-based products, food processing units, warehouses, go-downs, cold storage, Agri-infrastructure projects, etc, are eligible. The scheme aims at a minimum of 400 MSMEs every year.
All financial requirements of the units including setting up of new units, modernization/ expansion/ renovation of existing units, purchase of machinery, working capital needs, etc. are covered.
90% of the project cost will be given as loan. The minimum is Rs 5 lakh. For loans up to Rs.1000 lakh, the State Government have agreed to bear 3% interest subvention. Further, KFC will provide 2% subvention. Hence, customers need to pay only 5%.
For larger projects, loans up to Rs 1000 lakh can be allowed with interest subsidies and the balance amount with normal interest. The maximum repayment period will be 10 years including a maximum of two years moratorium.
Agro-based industries play an important role in contributing to the overall development of the State’s economy. Almost 40% of the MSMEs in Kerala are Agro-based and hence, the scheme will benefit a large section of entrepreneurs said Sanjay Kaul, IAS, CMD KFC.
KFC also declared a business campaign with 50% waiver in the processing fee for new MSME loans and 0.25% interest discount for top-rated clients.
(UNI)
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