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State-owned Kerala Financial Corporation aims to double the size of its loan portfolio to ₹10,000 crore, according to State Finance Minister KN Balagopal under whose jurisdiction the company falls.
Earlier this year, the Corporation had fixed a target of ₹5,000 crore in the loan portfolio against the ₹4,621.13 crore of the previous year (2020-21). The proposed doubling is despite the negative sentiments on business kicked up by the Covid-19 pandemic.
Braves Covid-19 concerns
In fact, the Corporation has been able to position itself well and was able to improve its performance in terms of an all-time high growth in the loan portfolio, higher sanctions, disbursements and recovery during the year. It also managed to significantly bring down the NPAs, an official spokesman said.
The Finance Minister announced the raised loan portfolio target while addressing entrepreneurs at the inaugural function of the second phase of the Chief Minister’s Entrepreneurship Development Programme (CMEDP 2.0) being implemented by the Corporation.
Financial supermarket
“The State hopes to see Kerala Financial Corporation emerge as a financial supermarket assisting entrepreneurs with low-interest rates and easy terms. To facilitate this, the State government will introduce new schemes and broaden the horizons of its activities,” the Finance Minister said.
Also read: Kerala Financial Corporation to lend up to ₹1 cr to SMEs at 5% rate
Sanjay Kaul, Chairman and Managing Director, said that digital lending and technological upgradation will be the core themes of the Corporation in the coming years. The State government and entrepreneur community have always supported the Corporation in its endeavours, he added.
Surge in applications
The State government had announced the CMEDP 2.0 on November 5 this year, and the scheme has since seen a surge in applications. So far, more than 130 loans have been sanctioned. The Minister handed over loan sanction letters to entrepreneurs under the CMEDP and Startup Kerala schemes.
The first phase of the CMEDP scheme which was rolled out in July 2020 saw over 1,700 loans being sanctioned. In the second phase, the loan limit has been enhanced to ₹1 crore from ₹50 lakh while the interest rate was slashed from seven per cent to five per cent.
Loan limit up, rates cut
The scheme finances up to 90 per cent of the project cost that too in simple terms. The State government proposes to assist 2,500 enterprises under the scheme. Meanwhile, Kerala Financial Corporation also provides training and hand-holding to first-line entrepreneurs, the spokesman said.
Also read: Kerala Financial Corporation announces special loans for MSMEs
The Corporation has a track record of 68 years in lending, and has handled various government-sponsored schemes over the years in addition to project financing, he added.
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