Scheme Name

KFC Working Capital Loan Scheme (under KFC CUB arrangement)

Nature of loan

Advances as Working Capital (WC) facilities

Objective of the loan

The objective of the scheme is to provide timely and adequate WC assistance at competitive rates of interest to eligible MSMEs for meeting their WC requirements.

Eligible units

• All Industrial Concerns defined in SFCs Act 1951
• The Industrial Concerns should have MSME -Udyam Registration. However, MSME -Udyam Registration shall not be insisted for large industries.
• The Industrial Concerns should have GST registration and filing GST returns as per the schedule. However, this condition will not apply to MSMEs that are exempt from GST registration.
• The Industrial Concerns should have necessary licenses/ permits to operate.
• All Micro, Small and Medium enterprise Traders with MSME-Udyam registration will also be eligible under this scheme.

Eligibility criteria

Working Capital Assistance would be considered to the following categories of borrowers:
(a) Existing Customers of KFC:

• Existing standard category customers of KFC who are not having working capital facilities with any Bank.
• Existing standard category customers of KFC who are having working capital facilities with a Bank, but willing to switch over to KFC for better terms.

(b) New Customers to KFC:

• The unit should be in commercial operation
• The unit should have registered cash profit as per the latest financials
• The loan accounts with Banks should be standard
• The CIBIL of all promoters/ Entity should be as per the Credit Manual

Minimum and Maximum Assistance

Minimum loan amount shall be Rs.5 lakh. Upper limit shall be Rs.5000 lakh

Rate of Interest

The rate shall be floating linked to the KFC’s Base Rate, with monthly rests.

Processing fee

Non-refundable processing fee of 0.50% (plus GST) of the limit sanctioned to be collected at the time of sanction of the limit. Further, 0.25% pa (plus GST) of limit at subsequent renewal/ review or period of one year whichever is earlier. 

Review of the facility

KFC shall, at its sole discretion, be entitled to review the operations of the limit from time to time.  Based on this, KFC shall have right to reduce or suspend the limit at any time at its sole and absolute discretion without assigning any reason therefor.

Internal Rating

Minimum Internal rating shall be 50%.

Foreclosure Premium

No applicable except in case of Bank takeover.

Other Conditions

The borrower should close all his/ her other OD/ CC/ Current Accounts with Banks, once WCTA with CUB becomes operational as per RBI guidelines. The borrower should invariably route all the business transactions through WCTA.