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Kerala State Industrial Development Corporation (KSIDC) is planning to disburse a minimum of ₹250 crore, targeting around 500 entrepreneurs under the Chief Minister’s Special Assistance programme.
The project will have the potential to generate 3,000 employments directly and the scheme will focus on MSMEs, start-ups and non-resident Keralites returning home for setting up enterprises, MG Rajamanickam, Managing Director, KSIDC has said.
Under the scheme, KSIDC will provide term loan assistance subject to a minimum of ₹25 lakhs to a maximum of ₹2 crore for MSMEs and start-ups at an interest rate of 7 per cent as the State government plans to provide a 3 per cent interest subvention as part of providing an investment subsidy.
Eligibility
The promoters of green-field ventures and existing enterprises within Kerala are eligible for the loan under the CM’s Special Assistance programme. Processing or upfront fee will not be charged for loans up to ₹1 crore. Those applying for the loan should have a CIBIL score above 650. The scheme is open to all entities including partnerships, proprietorship, and company, etc.
Promoters of the ventures should hold a minimum of 20 per cent of the investment. The repayment period of the loan is five years. A moratorium of one year will be provided for repayment. But interest repayment is mandatory during the moratorium period, Rajamanickam said.
Stellar performance
KSIDC managed a stellar performance in the first three quarters of the current fiscal, despite the overall stressful economic situation owing to the Covid-19 pandemic. Profit after tax for the first 9 months posted a 62 per cent growth at ₹35.61 crore from ₹21.91 crore in the first three quarters last year.
The sanctions, loan collections and operating profit in the first 9 months of the current fiscal were all higher than in the comparable period of the previous year. Sanctions went up from ₹154.57 crore in the first 9 months to ₹213.10 crore.
Similarly, loan collections (₹94.39 crore) and operating profit (₹43.01 crore) were higher in the first 9 months. The disbursements were ₹159.67 crore. Importantly, KSIDC could achieve an investment mobilisation of ₹559 crore and generate 1,547 jobs during the period.
The Board meeting also approved 5 projects at investment outlay of ₹185.5 crore and sanctioned loans of ₹99.25 crore.
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