While presenting the Budget 2022-23, the State Finance Minister KN Balagopal announced the latest scheme of Kerala Financial Corporation, a leading state government-owned non-banking financial company (NBFC). KFC has launched a new loan scheme to offer loans up to Rs 10 crore made available at 5 per cent annual interest rate to agro-based MSMEs.
Starting at Rs 5 lakh, the applicants will be able to apply for loans with amounts equal to 90% of the overall project cost. On loans up to Rs. 10 crore, the state government would provide a 3 per cent interest subsidy. KFC will also give an additional 2 per cent subsidy. Clients will therefore only be required to pay 5%. The loan’s maximum payback period is 10 years with a two-year moratorium.
The objective is to provide loans to at least 400 MSMEs annually.
Applying for loans under this program is open to agri-based commercial units, dairy-animal husbandry enterprises, start-ups, agri-products processing and marketing enterprises, warehouses, units involved in processing, marketing, and trading of agro-based products, as well as those working on projects to build basic agricultural amenities.
Since about 40% of Kerala’s MSMEs are agro-based, the program will help a significant number of small business owners in the state.
Read More: DBS Bank launches Green Deposit Program
