The Karnataka State Financial Corporation (KSFC) has submitted proposals to the State government seeking a Rs. 200-crore soft loan or introducing a scheme providing 3 per cent rebate for borrowers from the corporation, for five years.
Speaking to presspersons here on Wednesday, KSFC managing director M. Madan Gopal said the corporation proposed these schemes following the decision by the Small Industries Development Bank of India to gradually withdraw financial support for State financial corporations.
If entrepreneurs taking loans from KSFC got 3 per cent rebate on the loan, it would bring down the cost of borrowing and make KSFC’s products on a par with those of nationalised banks. The State government may require a maximum of Rs. 50 crore to introduce this scheme, Mr. Gopal said.
KSFC would also submit a proposal on Thursday for a special scheme to provide credit of up to Rs. 50 lakh at 4 per cent interest for women entrepreneurs. The Department of Women and Child Welfare had agreed to coordinate the scheme and it would help in their empowerment, the official said.
A similar scheme for those belonging to Scheduled Castes and Scheduled Tribes was a success, he added.
For green technology
KSFC would also provide 1 per cent rebate on interest for green technology projects and entrepreneurs with physical disabilities, he said.
SME parks
KSFC had finalised a scheme to develop small and medium enterprise (SME) parks in Bangalore, Gulbarga, Hubli-Dharwad, Mangalore and Chitradurga.
Under this project, the corporation would buy 25 acres of land in each place from the Karnataka Industrial Areas Development Board to develop SME industrial areas with all amenities, Mr. Gopal added.
