Kerala Financial Corporation (KFC), which is run by the state government, has launched a new loan scheme to help agro-based industries. Loans of up to 10 crore can be obtained under the scheme at a 5% annual interest rate. Finance Minister K. N. Balagopal announced the scheme in the 2022-23 State Budget.
Loans are available to MSME units in the agro, dairy, and animal husbandry industries, as well as agro-based start-ups, units engaged in the processing, marketing, and trading of agro-based products, warehouses and godowns, cold storages, and other agri-infrastructure projects. Every year, the scheme aims to reach at least 400 MSMEs.
A loan of up to 90% of the project cost will be provided. The bare minimum is 5 lakh. The state government will bear a 3% interest subsidy on loans up to 10 crore. Furthermore, KFC will provide a 2% subsidy. As a result, customers must pay only 5%. The maximum repayment period will be ten years, with a two-year moratorium.
Agro-based industries contribute significantly to the overall development of the state's economy." Almost 40% of Kerala's MSMEs are agro-based, so the scheme will benefit a large number of entrepreneurs, as per KFC chairman and managing director Sanjay Kaul.
About KFC:
The Kerala Financial Corporation (KFC) is a Public Sector Undertaking (PSU) that was founded in 1953 to aid in the industrialization and development of Kerala. It is based in Thiruvananthapuram and has 16 branch offices, as well as zonal offices in Ernakulam, Kozhikode, and Thiruvananthapuram.
The primary goal of KFC is to accelerate the state's industrialization by providing financial assistance to Micro, Small, and Medium Enterprises in the manufacturing and service sectors. The SFCs Act authorises KFC to develop appropriate loan schemes to achieve the aforementioned goals.
