Kerala Financial Corporation (KFC), Kerala Government-owned leading Financial Institution, has launched a new loan scheme to assist Agro-based industries. Under the scheme, loans up to Rs.10 crore can be availed @5% annual interest. The scheme was declared by Hon. Finance Minister while presenting the Budget 2022-23.  
 
MSME units from Agro, Dairy & Animal Husbandry related industries, Agro-based-Startups, processing/ marketing/ trading of Agro-based products, food processing units, warehouses, go-downs, cold storage, Agri-infrastructure projects, etc. are eligible. The scheme aims at a minimum of 400 MSMEs every year.

All financial requirements of the units including setting up of new units, modernization/ expansion/ renovation of existing units, purchase of machinery, working capital needs, etc. are covered. 
 
90% of the project cost will be given as loan. The minimum is Rs.5 lakh. For loans up to Rs.1000 lakh, the State Government have agreed to bear 3% interest subvention. Further, KFC will provide 2% subvention. Hence, customers need to pay only 5%. 
 
For larger projects, loans up to Rs.1000 lakh can be allowed with interest subsidies and the balance amount with normal interest. 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 Sanjay Kaul IAS CMD KFC. 
 
KFC also declared a business campaign with 50% waiver in the processing fee for new MSME loans and 0.25% interest discount for top-rated clients now

Last updated on :29-07-2022