Finance Minister K.N. Balagopal has announced a one-year moratorium on loans taken by small entrepreneurs from the Kerala Financial Corporation (KFC).
The benefit is for loans for which repayment was prompt till March 31, 2021. The applications for availing oneself of the moratorium can be submitted till September 30, the Minister said. No additional charges or interest will be levied for this.
For enterprises which had repaid the loans promptly till March 31, 2020, an additional 20% loan will be provided in addition to the 20% given last year.
Loans to those involved in COVID-19 prevention are available to all health-care sectors, including units involved in the manufacture and distribution of oxygen, ventilators, oximeters, gloves and other life-saving equipment; hospitals; and labs.
Loans up to ₹50 lakh will be included in the Chief Minister’s Entrepreneurship Scheme and only 7% interest will be levied. The loan will be for five years. For loans above ₹50 lakh, the interest rate will be ratings based. The repayment period is 10 years. Loans up to 90% of the total cost are available.
Reduced interest rates
Interest has been reduced for loans provided to small industries, health-care and tourism. The minimum interest rate has been reduced from 9.5% to 8% and the maximum from 12% to 10.5%, the Minister said.
The limit of loans that can be sanctioned by KFC district managers has been increased from ₹ 50 lakh to ₹2 crore. A special cell will be set up at the head office to expedite the approval and disbursement of loans to small entrepreneurs and start-ups, he added.
