Kerala Finance Corporation to help MSMEs tide over Covid-19 disruptions

Our Bureau | Updated on April 03, 2020

Thiruvananthapuram, April 3

Kerala Financial Corporation has come out with three new loan schemes to help micro, small and medium enterprises (MSMEs) tide over the stress due to the economic fallout from the Covid-19 pandemic.

A loan of ₹5 crore has being made available on easy terms against work orders to units engaged in manufacturing products or providing services to fight the pandemic and those engaged in food processing or setting up isolation wards. The loan can be used for acquiring equipment, purchasing raw material, or for meeting their financial requirements.

A second scheme will provide top-up loans to existing customers to tide over the current situation, without having to provide any additional security. Those units in commercial operation and falling under the standard category as on March 1 can benefit from the scheme.

A third scheme intends to support new customers with a loan of ₹50 lakh. This loan can be availed by all MSME units, entities involved in marketing MSME products or supporting the MSME sector. The loan eligibility will be based on the turnover, and such loans will have a repayment period of 36 months after a moratorium of 12 months.

“Kerala Financial Corporation wishes to handhold MSME units at this stage by providing them with various assistance to mitigate disruptions caused by the pandemic. The schemes being announced will ensure the continuity of businesses,” said Sanjay Kaul, Chairman and Managing Director.

It has also granted moratorium for loan repayments to existing customers as part of the relief package. For the interest falling due after the moratorium period, customers will be granted a new payment schedule.

“We have assisted various state public sector undertakings including the Kerala State Medical Supplies Corporation and Kerala State Drugs and Pharmaceuticals through a bill discounting scheme of the state government,” added Kaul.

Published on April 03, 2020

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