Objective. The scheme is being implemented by revamping the existing Chief Minister's Entrepreneurship Development Programme. At present, up to 50 lakh is available under the scheme at 7% interest. The scheme will be changed to provide up to Rs 1 crore at 5% interest. The Government of Kerala will provide 3% subsidy under the scheme and a further 2% subsidy will be provided by KFC. The target is 2500 enterprises in five years at the rate of 500 enterprises per annum. For this KFC will set aside 300 crore every year
1. Kerala Financial Corporation, a State Government owned financial institution, is introducing a new scheme for small and medium sector enterprises offering loans up to Rs.1 crore at 5% interest.
2. Industrial units must have MSME registration. The age of the chief entrepreneur should be below 50 years. The age limit for SC/ ST entrepreneurs, women entrepreneurs and Non-Resident Keralites is up to 55 years. Loans are available to start new ventures and modernize the existing ventures.
3. The loan will be up to 90% of the project cost. Large projects will get higher also. In such cases, loans up to Rs 1 crore will be sanctioned at the rate of 5% and the balance at the normal interest rate of KFC.
4. The repayment period is up to 10 years. However, the interest subsidy will be for the first five years only. KFC will provide specialized training and follow-up services for the selected entrepreneurs.
5. Startups will also benefit under the scheme. Loans up to Rs 1 crore will be available to startups at a rate of 5.6%.