After its large loans running into crores lent to some sectors backfiring and adding to its Non Performing Assets (NPA), the Kerala Financial Corporation (KFC) is planning to diversify its financial support schemes by backing smaller projects, especially those aimed at promoting sustainable livelihood and social entrepreneurship.
One of the immediate beneficiaries would be Kudumbasree, which was till now outside the ambit of the KFC owing to the demand for smaller loan components. Kudumbasree members had to depend on bank loans on collateral securities.
“We have already held a round of discussions with Kudumbasree executive director. Further discussions are needed and the modalities would be finalised in consultation with the Finance Minister,” said M.G. Rajamanickam, who recently assumed charge as the Managing Director of the KFC.
The public sector undertaking’s decision to lend handsome amounts to bar owners and quarry owners had faltered after these sectors were hit hard by the government’s liquor policy and court intervention respectively.
The KFC is also planning to have tie-ups with District Industries Centres (DICs) whereby loans would be extended to projects recommended by them. As of now, DICs recommend viable projects coming before them to banks to help entrepreneurs avail of loans.
The KFC also aims at repositioning as a principal promoter of start-ups with its existing schemes failing to have the desired effect. It will start with converting two floors at the KFC complex at Kaloor into plug-and-play start-up spaces at reasonable rent.
“Space would be available to 25 companies of up to ten members in the newly developed floors, the work on which is 70 per cent complete. Most probably the space would be divided between start-ups in their incubation stage and startups which need handholding immediately after incubation before they turn sustainable. A final decision would be taken in consultation with the government,” Mr. Rajamanickam said.
Regional projectsThe KFC plans three regional workshops in Kochi, Thiruvananthapuram and Kozhikode for enterprising youngsters, including from engineering colleges, to provide them a platform for showcasing their ideas. Those projects vetted by an appraisal team of KFC would be extended loans. Discussions had also been held with Kitco to set up a venture capital fund to help start-ups.
