The Kerala Financial Corporation has slashed the interest for schemes in all sectors by 0.5% with effect from August 1.
Corporation managing director M.G. Rajamanickam said on Friday that the decision would help manufacturing, industrial and service sector units. With the interest reduction based on credit rating and rebate on prompt repayment, units in manufacturing sectors, which follow good practices, could avail themselves of loans at 10.5% interest, while the units in service sector could get loans at 11%.
Interest reduction of 0.5% for enterprises fully owned by women would continue. The effective rate for energy saving projects in small and medium enterprises would be 6%. The corporation has introduced a special scheme for start-ups in which 90% of the project cost, up to a maximum of ₹ 10 lakh, will be given for five years.