Loan Schemes, Kerala Financial Corporation (KFC), Thiruvananthapuram, Kerala, India

Loan schemes/Interest Rates

The Corporation would endeavour to extend comprehensive services including term loan, working capital and special schemes that may be required for benefit of the SME sector. The Interest and principal are to be paid in monthly rests for all schemes. The extent of financing is based on the type of the project and credit rating. Interest rates, extent of financing and maximum period of loans are given below:

INTEREST RATES FOR LOAN SCHEMES FOLLOWING FLOATING RATE EFFECTIVE FROM 01/04/2013

Sl. No.	Name of Scheme	Interest rate gross linked to PLR	Rebate for prompt payment	Interest reduction based on credit rating (>=70%)	Interest reduction based on credit rating (>=75%)	Effective rate after rebate and interest reduction based on credit rating
1	2	3	4	5	6	7
	Scheme for Term Loan for industrial activities
1	a) General/ Micro/Small/Medium enterprises in Service and Manufacturing Sector (existing loans)	15.00%	2%	0.5%	0.5%	12.00%
	b) Energy Saving Projects	14.50%	7.50%	1%		6.00%
	c) For new loans granted to SC/ST entrepreneurs, renewable energy projects, units promoted by women entrepreneurs in manufacturing sector, MSME enterprose in manufacturing sector.	14.00%	2%	0.5%	0.5%	11.00%
2	Working Capital Revolving Fund Loan / WCTL	15.00%	2%	0.5%	0.5%	12.00%
3	Construction Activities and Housing Project, Shopping/Commercial complex/ Kalyanamandapam & Warehouse/Godowns	16.00%	2%	0.5%	0.5%	13.00%
4	Short Term Loan Scheme	15.00%	2%	0.5%	0.5%	12.00%
5	Special Working Capital Assistance to Hotels	15.00%	2%	0.5%	0.5%	12.00%
6	Scheme for Financial Assistance to Civil Contractors	16.00%	2%	0.5%	0.5%	13.00%
7	Scheme for Financial Assistance for producing Films and TV serials	16.00%	2%	0.5%	0.5%	13.00%
8	Scheme for Modernisation, Upgradation and Expansion of Existing Cinema Theatres/ Establishment of New Multiplexes	16.00%	2%	0.5%	0.5%	13.00%

Note:

For all existing loan which are availing interest reduction based on credit rating the same has to be reviewed and only those cases which get a score of 70 and above as per the new credit rating format will be eligible for 0.5% reduction.

Loan to existing Micro Finance Institutions will be at 13.5%.

It should be ensured that the effective rate after rebate for prompt repayment andreduction based on credit rating should not be less than PLR -2.5%. This will be applicable for all cases/schemes except for loans to SC/ST entrepreneurs, Energy Saving projects, Women entrepreneurs in manufacturing sector and MSME Enterprises in manufacturing sector.

In case of any change in market conditions, trends, cost of funds, or any other new development, interest rates can be varied upto 1% (increased or decreased) for any scheme by CMD.