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The Kerala State Finance Corporation has approved a scheme for advancing short-term finances to MSME units adversely affected by the GST regime.
The upper loan limit is ₹15 lakh and the sanction will be valid for one year. The promoter’s contribution will be 25 per cent.
Public/private limited companies, partnership firms, and limited liability partnerships are eligible, a top official of the Corporation told BusinessLine here.
Well-run enterprises operating for not less than three years, with a credit rating of over 70 per cent in the internal rating systems adopted by the Corporation for term loans, may apply. Their Cibil score should be above 650.
They should have been generating profits during the last three financial years and have a positive net worth. Financial dealings with funding agencies should have been regular and accounts with them, ‘performing.’
The repayment period will be six months after an initial moratorium of three months. Although the repayment will be fixed in equal monthly instalments, the amount may be repaid in lump or in instalments.
Since only well-ru enterprises are being considered, the lowest rate of 9.50 per cent will be applicable with a provision to charge penalty interest at 2 per cent on default.
The borrower has to furnish a bank guarantee or collateral security (100 per cent of loan sanctioned).
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