KFC has become a member of the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). With this, KFC can now provide credit facility upto Rs.50 lakh without collaterals and third-party-guarantees, to Micro and Small Enterprises (MSEs). The objective is to provide credit facility to MSEs purely on the primary security of the assets financed based on viability of a project.

The guarantee cover available under the scheme is to the extent of
(i) 85% of the sanctioned amount for credit upto Rs.5 lakh
(ii) 80% for MSEs operated and / or owned by woman
(iii) 75% for credit above Rs.5 lakh

One time guarantee fee of 1% in the case of loans upto Rs.5 lakh and 1.5% in the case of loans above Rs.5 lakh is payable by the borrower. There will also be annual service fee at 0.50% for loans upto Rs.5 lakh and 0.75% for loans above Rs.5 lakh on the facility sanctioned.