Financial Assistance (KFC)

Overview

Financial Corporation (KFC) incorporated under the State Financial Corporations Act of 1951.

The Kerala Financial Corporation (KFC) was established by the State Financial Corporations Act of 1951, passed by the Kerala Legislative Assembly, to accelerate the industrial growth of the state of Kerala. The corporation was formally founded as the Travancore Cochin Financial Corporation on 1st December 1953 and was later renamed Kerala Financial Corporation in 1956 following the state's reorganization.KFC now has 21 branch offices with its headquarters in Thiruvananthapuram. 99.005% of the shares of the Corporation are owned by the Government of Kerala. The main objective of the Corporation is to boost industrial growth in the state by strengthening the MSME industrial sector. The Corporation has sanctioned loans to around 65,000 enterprises to date. The Kerala Financial Corporation is also recognized as one of the best-performing state financial institutions in India.

Major Loan
CMEDP Loans
Startup Loans
Other Products

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

Major Loan Products
Term Loan For Industrial Activities
  • New and Existing Enterprises 
  • Should be prompt in servicing existing liabilities 
  • Moratorium up to 2 years
Working Capital Loans
  • The upper limit is up to Rs.5 crore
  • Should obtain a minimum credit rating of 40%
  • Moratorium up to 12 months
Financing Construction Activities And Housing Projects
  • Financial assistance to builders and developers 
  • Constructing flats, villas and apartments 
  • Repayment Period 6 years
Short Term Loan
  • The upper limit is up to Rs. 5crore 
  • Should obtain a minimum credit rating of 40% 
  • Moratorium up to 6 months
Modernisation, Upgradation, Expansion and Diversification
  • Loan up to 90% of expansion cost. 
  • Existing Industrial Units, Hotels, Hospitals, etc 
  • Moratorium period up to 24 months
Contractor Loan
  • Loans for Government & Corporate Contractors and MSMEs
  • Sanctioned as Line of Credit for five years 
  • Bill Discounting of Part/Final Bills
Special Loan Products
Chief Minister’s Entrepreneurship Development Programme (CMEDP) Edition II
  • The upper limit is up to Rs. 2 crores 
  • Interest Rate 5% (The Govt will bear 3% interest subvention and KFC will bear 2%)
Startup Kerala - Comprehensive Scheme by KFC for Financing Startups
  • To assist Start-ups in all stages of their growth starting from proof of concept, prototype development, product trials, etc.
LoC Scheme for MSMEs
  • For providing guarantees & financial assistance to MSME units in terms of executing the work orders, discounting 
  • Upper loan limit - Rs. 50 crore
KFC Agro-based MSME Loan Scheme (KAMs)
  • Aims to assist a minimum of 400 Agro-based MSMEs every year. 
  • Special loan scheme for MSMEs in Agriculture Sector
KFC CUB Arrangement
  • Advances as Working Capital (WC) facilities 
  • Minimum Loan amount shall be 5 lakh
Scheme for Assisting Traditional Fisherman
  • Scheme for assisting Traditional Fishermen of Kerala to procure Mechanized Deep Sea Fishing Vessels (DSFV).
Letter of Guarantee Scheme
  • To offer Bank Guarantee (BG) for units assisted by the Corporation
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KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

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Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

Eligible Units
  • MSME Units 
  • Startups Startups 
  • Units referred by NORKA 
  • Agro-based Projects
Not Eligible Units
  • Bar Hotels 
  • Transport 
  • Crusher 
  • Trading
  • CRE Projects 
  • Contractor Loan
  • Cinema / Serial Production
Eligibility of Promoters
  • The Chief Promoter's age can be up to 50 years 
  • The age limit for SC/ ST entrepreneurs, women entrepreneurs and Non-Resident Keralites is up to 55 years. 
  • None of the promoters should be permanently employed 
  • CIBIL Score more than 650
Application Procedure
  • Online enquiry submission
  • Document submission 
  • Branch verification 
  • Training 
  • Sanction & Disbursement
rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

Loan for executing purchase orders
  • Should have secured a firm purchase order from a Government / PSU / Reputed Private Sector Enterprise 
  • Maximum Loan Rs. 10 crore
Venture Debt Funding
  • For IT Hardware and Software Enterprises 
  • Should have undergone due diligence by a SEBI accredited Venture capital Fund 
  • Maximum Loan Rs. 10 crore
Seed Loan Assistance
  • Should be working on development of socially relevant product which addresses any of the Sustainable Development Goals prescribed by UNO 
  • Loan up to Rs. 1 crore 
  • Repayment period up to 3 years
Loan for productization /commersialisation / scaling up
  • Productization- 25 Lakhs 
  • Commercialization 50 Lakhs 
  • Scaling up- 100 Lakhs
rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Impact On The Economy

The growth of the IT sector has had a substantial impact on Kerala's economy. It has created numerous job opportunities, contributing to reduced unemployment rates. Additionally, the state's IT exports have been steadily increasing, adding to its revenue. As IT companies and startups flourish, they also attract investment, thereby further stimulating the economy.Kerala's IT sector is not just about software services; it has diversified into various niches. Some notable sectors include healthcare IT, cybersecurity, fintech, and e-governance. These niche areas cater to both domestic and international markets, generating revenue and employment opportunities.

Guarantee
  • Performance Guarantee / Additional Performance Guarantee 
  • Letter of Guarantee to MSMEs 
  • Guarantee for availing Letter of Credit from Banks
Certificates
  • Solvency Certificate 
  • Capability Certificate
Insurance Products
  • Life Insurance 
  • General and Health Insurance
Consultancy Services
  • CIBIL 
  • Project Reports 
  • Land and Technical Valuation 
  • Title Scrutiny 
  • Verification of Suppliers and Promoters
rightLeaf

Get to Know Us: Kerala's Investment Destination of Choice.

Exploring Kerala: Your Investment Journey Begins Here

knowUsPic1
KSIDC

Our vision at Invest Kerala is to see the state emerge as a beacon of economic vitality and innovation on both national and global fronts. We aspire to create an environment where every investor's dreams can take root

Read More

Last Updated on: 17 July 2024സന്ദ൪ശകരുടെ എണ്ണം : 3056822