| Type of Loan | Term Loan - General |
| Scheme name | KFC Agro-based MSME Loan Scheme (KAMS) |
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Purpose of the loan |
The scheme aims to assist a minimum of 400 Agro-based MSMEsevery year. |
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Eligibility Criteria |
MSME units from Ago, Dairy & Animal Husbandry related industries, Agro- based-Startups, processing/ marketing/ trading of Agro-based products, food processing units, warehouses, go-downs, cold storages, Agri- infrastructure projects, etc. sectors. The units should have MSME-Udyam Registration. |
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Financial Assistance |
The financial assistance can be in the form of term loan or working capital loan or a combination of both, as per the requirements of the enterprise. The upper ceiling of financial assistance will be as per the Credit Policy of the Corporation |
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Internal credit rating |
The minimum Credit rating required for assisting units is 40% |
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Promoter’s contribution |
The minimum promoter’s contribution for term loan shall be 10%. The promoter’s contribution shall be brought in upfront |
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Interest Rate |
The gross interest rate shall be 11% pa linked to the base rate of the Corporation. |
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For loans (term loan and working capital together) up to Rs.1000 lakh, the State Government bear 3% interest subvention. Further, KFC will bear 2% subvention as rebate for prompt repayment. Hence, the net effective interest after subvention will be 6% for the first year. |
| Repayment Period | The maximum repayment period shall be 10 years including a maximum of two years moratorium. However, the interest subsidy will be limited to first five years. |