Kerala Financial Corporation launches loan scheme for agro-based industries

Loans up to ₹10 crore offered at 5% annual interest

July 28, 2022 06:10 pm | Updated 06:10 pm IST - THIRUVANANTHAPURAM

The State government-run Kerala Financial Corporation (KFC) has launched a new loan scheme to assist agro-based industries. Under the scheme, loans up to ₹10 crore can be taken at 5% annual interest. The scheme had been announced in the 2022-23 State Budget by Finance Minister K. N. Balagopal.

MSME units from agro, dairy and animal husbandry-related industries, agro-based start-ups, units engaged in processing, marketing and trading of agro-based products, warehouses and godowns, cold storages and other agri-infrastructure projects are eligible for loans. The scheme aims at a minimum of 400 MSMEs every year.

As much as 90% of the project cost will be given as loan. The minimum is ₹5 lakh. For loans up to ₹10 crore, the State government will bear 3% interest subvention. Further, KFC will provide 2% subvention. Hence, customers need pay only 5%. 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 KFC chairman and managing director Sanjay Kaul.

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